Ashland's (ASH) Subsidiary Announces Senior Notes Offering
Zacks Investment Research | Jan 07, 2020 09:16PM ET
Ashland Global Holdings Inc.’s (NYSE:ASH) fully-owned subsidiary, Ashland Services B.V, announced its plan to offer €500 million (roughly $560 million) total principal amount of senior euro-denominated notes.
The notes will be treated as senior unsecured obligations of Ashland Services B.V. Notably, the notes will be guaranteed initially by each of Ashland and Ashland LLC, a fully-owned subsidiary of Ashland, on an unsecured basis.
Ashland plans to use the net proceeds from the senior notes offering along with the proceeds from Ashland’s delayed draw Term Loan A facility and other funds of Ashland LLC or its subsidiaries to purchase in cash tender offers, part of Ashland LLC’s outstanding 4.75% senior notes (having a purchase price of up to $575 million) slated to mature in 2022.
It also comprises the purchase of Hercules LLC’s outstanding 6.6% Debentures slated to mature in 2027, Ashland LLC’s outstanding 6.875% senior notes slated to mature in 2043 and Hercules LLC’s outstanding 6.500% junior subordinated debentures slated to mature in 2029, having a total purchase price of up to $250 million. This is subject to the order of priority and proration provisions, and other offer terms set forth by Ashland.
Notably, the offering of the notes is not subject to the completion of the tender offers.
Shares of Ashland have gained 13.7% in the past year compared with the Zacks Investment Research
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