Nova Chemicals Corporation is planning to refinance up to USD400 million in senior bonds due in 2024 with a USD400 million private bond offering due in 2028, said the company.
The new bonds carry an interest rate of 8.50% per year, compared with an interest rate of 4.875% per year for the notes that are being retired.
The bonds due in 2024 are the subject of a tender offer, which has been oversubscribed, with an aggregate principal amount of about USD754.5 million validly tendered as of Nov. 22. Nova expects that it will accept USD400 million of these bonds for purchase on a prorated basis.
The new bonds are structured with a redemption feature which allows Nova to redeem up to 10% of the bonds per year at a value of 103% of the bond’s face value. This provision applies during the customary two-year non-call period, when Nova cannot call the bonds in for redemption.
We remind, Amcor, a global leader in developing and producing responsible packaging solutions, today announced a Memorandum of Understanding (MOU) with leading sustainable polyethylene producer NOVA Chemicals Corporation for the purchase of mechanically recycled polyethylene resin (rPE) for use in flexible packaging films. Increasing the use of rPE in flexible packaging applications is an important element of Amcor’s commitment to support packaging circularity.
mrchub.com