Olin Announces Pricing of Private Offering of Senior Notes
Olin (NYSE: OLN) has priced a private offering of $600 million aggregate principal amount of 6.625% senior notes due 2033. The initial offering price is set at 100.000% of the principal amount. The notes will be senior unsecured obligations without subsidiary guarantees.
The offering is expected to close on March 14, 2025. Olin plans to use the proceeds, along with new replacement credit facilities, to: redeem $500 million of 5.125% Senior Notes due 2027, refinance existing revolving credit facility and repay borrowings including those for redeeming 9.500% Senior Notes due 2025, refinance existing term loan facility, and cover related expenses.
The notes are being offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
Olin (NYSE: OLN) ha fissato un'offerta privata di 600 milioni di dollari di ammontare principale aggregato di obbligazioni senior al 6,625% con scadenza nel 2033. Il prezzo iniziale dell'offerta è fissato al 100,000% dell'ammontare principale. Le obbligazioni saranno obbligazioni senior non garantite senza garanzie da parte delle filiali.
Si prevede che l'offerta si chiuda il 14 marzo 2025. Olin prevede di utilizzare i proventi, insieme a nuove linee di credito sostitutive, per: rimborsare 500 milioni di dollari di Obbligazioni Senior al 5,125% con scadenza nel 2027, rifinanziare la linea di credito revolving esistente e rimborsare i prestiti, inclusi quelli per il rimborso delle Obbligazioni Senior al 9,500% con scadenza nel 2025, rifinanziare la linea di prestito a termine esistente e coprire le spese correlate.
Le obbligazioni sono offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S della Securities Act.
Olin (NYSE: OLN) ha fijado una oferta privada de 600 millones de dólares de monto principal agregado de notas senior al 6,625% con vencimiento en 2033. El precio inicial de la oferta se establece en el 100,000% del monto principal. Las notas serán obligaciones senior no garantizadas sin garantías de subsidiarias.
Se espera que la oferta cierre el 14 de marzo de 2025. Olin planea utilizar los ingresos, junto con nuevas líneas de crédito de reemplazo, para: redimir 500 millones de dólares de Notas Senior al 5,125% con vencimiento en 2027, refinanciar la línea de crédito revolvente existente y reembolsar préstamos, incluidos los destinados a redimir Notas Senior al 9,500% con vencimiento en 2025, refinanciar la línea de préstamo a plazo existente y cubrir los gastos relacionados.
Las notas se ofrecen exclusivamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
Olin (NYSE: OLN)은 2033년 만기 6.625%의 선순위 채권 총액 6억 달러의 사모 발행 가격을 책정했습니다. 초기 발행 가격은 원금의 100.000%로 설정되어 있습니다. 이 채권은 자회사 보증이 없는 선순위 무담보 채무입니다.
이번 발행은 2025년 3월 14일에 마감될 것으로 예상됩니다. Olin은 수익금을 새로운 대체 신용 시설과 함께 사용하여: 2027년 만기 5.125% 선순위 채권 5억 달러를 상환하고, 기존 회전 신용 시설을 재융자하며, 2025년 만기 9.500% 선순위 채권 상환을 포함한 차입금을 상환하고, 기존의 기간 대출 시설을 재융자하며, 관련 비용을 충당할 계획입니다.
채권은 규정 144A에 따라 자격을 갖춘 기관 투자자와 미국 외의 개인에게만 제공됩니다.
Olin (NYSE: OLN) a fixé une offre privée d'un montant principal agrégé de 600 millions de dollars de billets senior à 6,625% arrivant à échéance en 2033. Le prix initial de l'offre est fixé à 100,000% du montant principal. Les billets seront des obligations senior non garanties sans garanties de filiales.
On s'attend à ce que l'offre se clôture le 14 mars 2025. Olin prévoit d'utiliser les produits, ainsi que de nouvelles lignes de crédit de remplacement, pour : racheter 500 millions de dollars de billets senior à 5,125% arrivant à échéance en 2027, refinancer la ligne de crédit renouvelable existante et rembourser des emprunts, y compris ceux destinés à racheter des billets senior à 9,500% arrivant à échéance en 2025, refinancer la ligne de prêt à terme existante et couvrir les dépenses connexes.
Les billets sont offerts exclusivement à des acheteurs institutionnels qualifiés en vertu de la règle 144A et à des personnes non américaines en vertu de la réglementation S de la loi sur les valeurs mobilières.
Olin (NYSE: OLN) hat eine private Platzierung von 600 Millionen Dollar an aggregiertem Nennbetrag von 6,625% Senior Notes mit Fälligkeit 2033 festgelegt. Der anfängliche Angebotspreis liegt bei 100,000% des Nennbetrags. Die Anleihen werden als ungesicherte Senior-Verpflichtungen ohne Tochtergesellschaften-Garantien angeboten.
Die Platzierung wird voraussichtlich am 14. März 2025 abgeschlossen sein. Olin plant, die Erlöse zusammen mit neuen Ersatzkreditfazilitäten zu verwenden, um: 500 Millionen Dollar von 5,125% Senior Notes mit Fälligkeit 2027 zurückzuzahlen, die bestehende revolvierende Kreditfazilität zu refinanzieren und Darlehen zurückzuzahlen, einschließlich derjenigen zur Rückzahlung von 9,500% Senior Notes mit Fälligkeit 2025, die bestehende Terminkreditfazilität zu refinanzieren und die damit verbundenen Kosten zu decken.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß der Regulation S des Securities Act angeboten.
- Refinancing higher-cost debt (9.500% 2025 Notes) with lower 6.625% interest rate
- Successful $600M debt offering indicates strong market confidence
- Extended debt maturity profile to 2033
- Increased total debt burden by $100M ($600M new vs. $500M 2027 notes)
- Additional interest expense from higher rate compared to 5.125% 2027 notes
Insights
Olin 's $600 million private offering of 6.625% senior notes due 2033 represents a significant debt restructuring that will reshape the company's financial profile. This transaction serves multiple strategic purposes - most notably extending debt maturities while navigating today's interest rate environment.
The company is executing a complete overhaul of its debt structure by using these proceeds alongside new credit facilities to: (1) redeem $500 million of 5.125% notes due 2027, (2) refinance its revolving credit facility including borrowings used to redeem 9.500% notes due 2025, and (3) refinance its existing term loan.
This creates a mixed impact on Olin's interest expense profile. The company is replacing some higher-cost debt (9.500%) with the new 6.625% notes, which is positive. However, they're also replacing lower-cost debt (5.125%) with higher-cost obligations, creating a potential interest expense increase on that portion.
The extension of maturities from 2025/2027 to 2033 provides enhanced financial flexibility and reduces near-term refinancing risk. The private offering structure - to qualified institutional buyers under Rule 144A - indicates Olin's preference for a streamlined issuance process versus a public offering.
While debt refinancing doesn't directly impact operations, this financial engineering aims to optimize Olin's capital structure and liquidity position, potentially supporting future strategic initiatives for this leading chemical manufacturer and ammunition producer.
Olin intends to use the net proceeds of the Offering, together with borrowings under new replacement credit facilities that Olin intends to enter into concurrently with or shortly after the consummation of the Offering (the "Replacement Credit Facilities"), to (i) redeem all of its
The Senior Notes are being offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Senior Notes are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-
The Senior Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, the Senior Notes nor shall there be any sale of the Senior Notes 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. No assurance can be made that the Offering will be consummated on its proposed terms or at all.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a leading
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws, including statements regarding the Offering. These statements often include words such as "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future events, and current expectations, estimates and projections about the Offering, the Refinancing Transactions and the Replacement Credit Facilities.
These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law.
The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024 and other reports furnished or filed with the SEC, include, but are not limited to, the following:
- sensitivity to economic, business and market conditions in
the United States and overseas, including economic instability or a downturn in the sectors served by us; - declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
- unsuccessful execution of our operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
- failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
- availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
- the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
- exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
- the failure or an interruption, including cyber-attacks, of our information technology systems;
- risks associated with our international sales and operations, including economic, political or regulatory changes;
- failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
- our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
- adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
- weak industry conditions affecting our ability to comply with the financial maintenance covenants in our existing credit facilities;
- our indebtedness and debt service obligations;
- the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
- our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;
- changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
- new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and proceedings;
- costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
- various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and
- failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability.
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements. We cannot assure you that the proposed transactions described above will be consummated on the terms currently contemplated, if at all. Our ability to consummate the Refinancing Transactions and obtain the Replacement Credit Facilities is subject to prevailing market conditions.
2025-06
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SOURCE Olin Corporation
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