Trinseo sets talk in downsized $700 million equivalent two-part offering of seven-year notes

By Paul A. Harris

Portland, Ore., April 22 – Trinseo SA downsized its offering of seven-year senior notes (B3/B-) to $700 million equivalent from $750 million equivalent, shifting $50 million of proceeds to its term loan, according to an informed source.

In addition the company announced tranche sizes and price talk.

The dollar tranche is sized at $300 million, and the notes are talked to yield 6¾% to 7%.

The euro tranche is sized at €375 million, with the notes talked to yield in the 6½% area.

Books close at noon ET on Wednesday for the euro notes and at 4:30 p.m. ET on Wednesday for the dollar notes.

The deal is set to price early Thursday morning, New York time.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs & Co., HSBC Securities (USA) LLC, Mizuho Securities USA Inc., Scotia Capital and SMBC Nikko are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes become callable after three years at par plus 50% of the coupon.

The issuing entities will be Trinseo Materials Operating SCA and Trinseo Materials Finance, Inc., subsidiaries of Trinseo.

The Berwyn, Pa.-based materials company and manufacturer of plastics, latex and rubber plans to use the proceeds along with $450 million of term loan borrowings and available cash to repay its 8¾% senior notes due 2019.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.