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Cytec begins tender offers for up to $175 million of 6%, 8.95% notes
By Angela McDaniels
Tacoma, Wash., Feb. 26 - Cytec Industries Inc. began tender offers for its $249.56 million of 6% notes due 2015 and $249.4 million of 8.95% notes due 2017, according to a company news release.
The company is offering to buy back up to $125 million of the 6% notes and up to $50 million of the 8.95% notes.
If the amount of a series of notes tendered is greater than the cap for that series, those notes will be accepted for purchase on a prorated basis. Cytec reserves the right to increase the maximum principal amount of notes to be accepted.
The early tender date is 5 p.m. ET on March 11, and the tender offers will expire at 11:59 p.m. ET on March 25.
The total consideration for each $1,000 principal amount of notes will be determined by reference to a fixed spread over the yield based on the bid-side price of a reference Treasury. It will be calculated at 9:30 a.m. ET on March 12.
The fixed spread is 75 basis points for the 6% notes and 135 bps for the 8.95% notes. The reference Treasury is the 0.25% Treasury note due Jan. 31, 2015 for the 6% notes and the 0.875% Treasury note due Jan. 31, 2018 for the 8.95% notes.
The total consideration will include a $30 early tender premium for each note tendered by the early tender date.
The company will also pay accrued interest up to but excluding the settlement date, which is expected to be March 26.
The offers are subject to the completion of Cytec's issuance of at least $400 million of senior notes due 2023. They are not contingent on the tender of any minimum principal amount of notes.
The dealer managers are Citigroup Global Markets Inc. (800 558-3745 or 212-723-6106), RBS Securities Inc. (877 297-9832) or Wells Fargo Securities, LLC (866 309-6316). The depositary and information agent is Global Bondholder Services Corp. (866 937-2200).
Based in Woodland Park, N.J., Cytec is a specialty material and chemical company.
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