Rhodia €700 million offering talked at 10¼%-10½% on dollar tranche, 25 bps behind on euro

By Paul A. Harris

St. Louis, May 5 - Price talk emerged Wednesday on Rhodia's upsized €700 million equivalent offering of six-year senior notes (B3/B) in dollar and euro tranches, according to a syndicate source.

The dollar tranche is talked to yield 10¼% to 10½%. The euro tranche is talked to yield 25 basis points less than the dollar tranche.

Books close late Thursday afternoon in the United States and on Friday morning in Europe. Pricing is set to take place Friday morning New York time.

Credit Suisse First Boston, BNP Paribas and Goldman Sachs & Co. are joint bookrunners on the Rule 144A/Regulation S offering. Credit Lyonnais is joint lead manager.

Proceeds will be used to pay down bank debt and address medium-term liquidity issues.

The offering was increased from €625 million equivalent. The increase will fund the tender for €500 million of the company's medium-term notes due 2005.

Rhodia is a specialty chemical manufacturer based in France.

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