By Paul A. Harris
St. Louis, Aug. 13 - Chemtura Corp. priced a $455 million issue of 7 7/8% eight-year senior notes (B1) at 99.269 to yield 8% on Friday, according to an informed source.
The yield printed on top of the price talk.
Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Wells Fargo Securities and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to repay and replace the company's existing debtor-in-possession facility, to repay other debt and to make payments, including transaction fees and expenses.
The proceeds will be deposited into an escrow account, together with cash provided by Chemtura sufficient to fund the redemption of the notes and accrued interest up to, but excluding, the date of redemption. The escrow account will remain in place until the escrow conditions are satisfied or a special mandatory redemption of the notes is required. While in escrow, amounts will be pledged for the benefit of the noteholders.
If the escrow conditions are not fulfilled within 60 days of closing, the notes will be redeemed at 101% of the issuer price, plus accrued interest.
Chemtura is a Middlebury, Conn.-based manufacturer and seller of specialty chemicals and polymer products that filed for bankruptcy on March 18, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-11233.
| Issuer: | Chemtura Corp.
|
| Face amount: | $455 million
|
| Proceeds: | $451,674,000 (approximate)
|
| Maturity: | Sept. 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Wells Fargo Securities, Goldman Sachs & Co.
|
| Coupon: | 7 7/8%
|
| Price: | 99.269
|
| Yield: | 8%
|
| Spread: | 577 bps
|
| Call features: | Callable on Sept. 1, 2014 at 103.938, 101.969, par on and after Sept. 1, 2016
|
| Equity clawback: | 35% at 107.875 until Sept. 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 27
|
| Rating: | Moody's: B1
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8% area
|
| Marketing: | Brief roadshow
|
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