3 Feb, 2022

Prince International prints senior notes at par to yield 9%; terms

Prince International Corp. has priced $756 million of 9% eight-year senior unsecured notes at the wide end of guidance. The offering was marketed via a Barclays-led bookrunner group.

The company initially proposed a $500 million tranche of seven-year (non-call three) secured notes alongside the unsecured debt, which were removed to boost sizing for a seven-year covenant-lite term loan B.

Proceeds of the notes and a $2.445 billion (upsized from $1.945 billion) loan financing will support the company's acquisition of Ferro Corp. and subsequent merger with Chromaflo Technologies Corp. Proceeds will also repay debt outstanding at Prince, Chromaflo and Ferro. Additional financing includes a $325 million revolving credit facility due 2027.

Houston-based Prince manufactures specialty products for applications in the construction, electronics, consumer products, agriculture, automotive, oil and gas, industrial and other end markets. Ferro is a supplier of functional coatings and color solutions. Chromaflo is a global provider of colorant technology solutions.

Unsecured debt ratings are CCC+/Caa2, while corporate and secured debt ratings are B-/B3. PMHC II Inc. is the issuing entity for the debt.

Terms:

Issuer PMHC II Inc.
Ratings CCC+/Caa2
Amount $756 million
Issue Senior notes (144A/Reg S for life)
Coupon 9%
Price 100
Yield 9%
Spread T+720
Maturity Feb. 15, 2030
Call Non-call three (first call at 104.5% on Feb. 15, 2025; then 102.25% on Feb. 15, 2026; then par on Feb. 15, 2027 and thereafter)
Trade (date) Feb. 3, 2022
Settle Feb. 11, 2022 (T+6)
Bookrunners Barc (lead)/CS/GS/JEFF/KeyBanc/DB/HSBC/BofA
Price talk 8.75%-9%
Notes Make-whole at T+50 prior to Feb. 15, 2025; change of control put at 101%; up-to-40% equity claw at 109% prior to Feb. 15, 2025.