Olin To Pursue Private Offering of Senior Notes
Olin (NYSE: OLN) has announced plans to offer $600 million in senior notes due 2033. The company intends to use the proceeds, along with new replacement credit facilities, to execute several refinancing transactions including:
- Redeeming $500 million of 5.125% Senior Notes due 2027
- Refinancing existing revolving credit facility and repaying all borrowings
- Redeeming all 9.500% Senior Notes due 2025
- Refinancing existing term loan facility
- Paying related fees and expenses
The senior notes will be offered privately to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. The notes will be Olin's senior unsecured obligations without subsidiary guarantees.
Olin (NYSE: OLN) ha annunciato piani per offrire 600 milioni di dollari in note senior con scadenza nel 2033. L'azienda intende utilizzare i proventi, insieme a nuove linee di credito sostitutive, per eseguire diverse operazioni di rifinanziamento tra cui:
- Riscattare 500 milioni di dollari di note senior al 5,125% in scadenza nel 2027
- Rifinanziare la linea di credito revolving esistente e rimborsare tutti i prestiti
- Riscattare tutte le note senior al 9,500% in scadenza nel 2025
- Rifinanziare la linea di prestito a termine esistente
- Pagare le relative spese e commissioni
Le note senior saranno offerte privatamente a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S. Le note rappresenteranno obbligazioni senior non garantite di Olin senza garanzie da parte delle filiali.
Olin (NYSE: OLN) ha anunciado planes para ofrecer 600 millones de dólares en notas senior con vencimiento en 2033. La compañía tiene la intención de utilizar los ingresos, junto con nuevas líneas de crédito de reemplazo, para llevar a cabo varias transacciones de refinanciamiento, que incluyen:
- Redimir 500 millones de dólares de notas senior al 5,125% con vencimiento en 2027
- Refinanciar la línea de crédito revolvente existente y reembolsar todos los préstamos
- Redimir todas las notas senior al 9,500% con vencimiento en 2025
- Refinanciar la instalación de préstamo a plazo existente
- Pagar las tarifas y gastos relacionados
Las notas senior se ofrecerán de manera privada a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S. Las notas serán obligaciones senior no garantizadas de Olin sin garantías de subsidiarias.
Olin (NYSE: OLN)은 2033년 만기 6억 달러의 선순위 채권 발행 계획을 발표했습니다. 회사는 새로운 대체 신용 시설과 함께 수익금을 사용하여 다음과 같은 여러 재융자 거래를 실행할 계획입니다:
- 2027년 만기 5.125% 선순위 채권 5억 달러 상환
- 기존 회전 신용 시설 재융자 및 모든 차입금 상환
- 2025년 만기 9.500% 선순위 채권 전량 상환
- 기존 기한부 대출 시설 재융자
- 관련 수수료 및 비용 지급
선순위 채권은 144A 규정에 따라 자격을 갖춘 기관 투자자에게 사적으로 제공되며, S 규정에 따라 비미국인에게도 제공됩니다. 이 채권은 Olin의 자회사 보증이 없는 선순위 무담보 의무입니다.
Olin (NYSE: OLN) a annoncé des projets d'émission de 600 millions de dollars en obligations senior arrivant à échéance en 2033. La société a l'intention d'utiliser les produits, ainsi que de nouvelles lignes de crédit de remplacement, pour exécuter plusieurs transactions de refinancement, notamment :
- Racheter 500 millions de dollars d'obligations senior à 5,125 % arrivant à échéance en 2027
- Refinancer la ligne de crédit renouvelable existante et rembourser tous les emprunts
- Racheter toutes les obligations senior à 9,500 % arrivant à échéance en 2025
- Refinancer la ligne de prêt à terme existante
- Payer les frais et dépenses associés
Les obligations senior seront offertes de manière privée à des acheteurs institutionnels qualifiés en vertu de la Règle 144A et à des personnes non américaines en vertu de la Réglementation S. Les obligations seront des engagements senior non garantis d'Olin sans garanties de filiales.
Olin (NYSE: OLN) hat Pläne angekündigt, 600 Millionen Dollar an Senior Notes mit Fälligkeit im Jahr 2033 anzubieten. Das Unternehmen beabsichtigt, die Erlöse zusammen mit neuen Ersatzkreditfazilitäten zu nutzen, um mehrere Refinanzierungstransaktionen durchzuführen, darunter:
- Rückzahlung von 500 Millionen Dollar an 5,125% Senior Notes mit Fälligkeit im Jahr 2027
- Refinanzierung der bestehenden revolvierenden Kreditfazilität und Rückzahlung aller Darlehen
- Rückzahlung aller 9,500% Senior Notes mit Fälligkeit im Jahr 2025
- Refinanzierung der bestehenden Terminkreditfazilität
- Zahlung der damit verbundenen Gebühren und Ausgaben
Die Senior Notes werden privat an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß Regulation S angeboten. Die Notes sind unbesicherte Senior-Verpflichtungen von Olin ohne Tochtergesellschaften-Garantien.
- Debt restructuring to potentially improve interest expense profile
- Extension of debt maturity to 2033
- Taking on $600M new debt
- Increased leverage risk in challenging economic conditions
Insights
Olin 's $600 million senior notes offering represents a comprehensive debt restructuring that could significantly impact its capital structure and financial flexibility. This refinancing package aims to address multiple debt obligations, including redeeming $500 million in 5.125% notes due 2027 and retiring all 9.500% notes due 2025.
The debt restructuring appears strategically timed to potentially extend maturity profiles and possibly secure more favorable interest rates, particularly by replacing the high-interest 9.500% notes. With a market capitalization of approximately $3.08 billion, this $600 million offering represents nearly 20% of Olin's equity value, making this a material financial transaction.
What's particularly noteworthy is the structure of the offering - these notes will be senior unsecured obligations without subsidiary guarantees. This structure gives Olin flexibility but may affect pricing and investor interest. The private placement approach limits availability to qualified institutional buyers, suggesting Olin is targeting sophisticated investors familiar with its credit profile.
For investors, this refinancing could potentially enhance Olin's interest coverage ratios and reduce near-term refinancing risks by extending maturities to 2033. However, the overall impact will depend on the interest rate secured on the new notes, which isn't disclosed in the announcement.
This debt restructuring represents a liability management exercise rather than capital raising for expansion. Olin is essentially housecleaning its balance sheet by addressing three separate debt components concurrently: the 2025 and 2027 senior notes plus existing credit facilities.
The timing is significant considering Olin's position as a cyclical chemicals manufacturer. By refinancing now and extending maturities to 2033, management is creating a longer runway before facing significant debt walls, which provides important operational flexibility through potential industry downturns.
The unsecured nature of these notes is noteworthy when considering Olin's debt hierarchy. Without subsidiary guarantees, these notes could potentially sit lower in the capital structure than other obligations, which might affect pricing. The success of this offering will partly depend on investor appetite for longer-dated paper from a mid-cap industrial company.
The concurrent replacement of credit facilities alongside the note issuance suggests a holistic approach to balance sheet management rather than piecemeal refinancing. This comprehensive strategy could potentially simplify Olin's debt covenants and provide more consistent terms across its debt portfolio, though execution risks remain as the offering is subject to market conditions and investor demand.
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 will be offered in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Senior Notes will be 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
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 may not consummate the Offering and, if the Offering is consummated, we cannot provide any assurance regarding the final terms of the Offering. Our ability to consummate the Refinancing Transactions and obtain the Replacement Credit Facilities is subject to prevailing market conditions.
2025-05
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SOURCE Olin Corporation
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