PolyOne intends to use the net proceeds from the offering to finance, in part, its pending acquisitions of Clariant AG's global masterbatch business
Polyone provides specialized polymer materials and services. (Credit: feiern1 from Pixabay.)
PolyOne announced the commencement of an offering of $650 million in aggregate principal amount of senior notes due 2025 in an offering exempt from the registration requirements of the Securities Act of 1933 (the Securities Act).
PolyOne intends to use the net proceeds from the offering to finance, in part, its pending acquisitions of Clariant AG’s global masterbatch business (the Clariant masterbatch acquisition) and Clariant Chemicals (India) Limited’s masterbatch business (collectively, the acquisitions). The net proceeds will also fund, in part, the payment of expenses related to the acquisitions. The closing of the offering is expected to occur prior to, and is not conditioned upon, the consummation of either of the acquisitions. The notes will be subject to a “special mandatory redemption” in the event that (i) the Clariant masterbatch acquisition is not consummated on or prior to December 19, 2020 or (ii) if prior to December 19, 2020, the purchase agreement is terminated, other than in connection with the consummation of the Clariant masterbatch acquisition. If a special mandatory redemption event occurs, PolyOne will redeem all outstanding notes at the “special mandatory redemption price” equal to 100% of the principal amount of the notes plus accrued and unpaid interest, if any, to, but not including, the special mandatory redemption date.
The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act, and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Source: Company Press Release