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Trinseo Raises $1.33 Billion in Year’s Second-Biggest Junk Sale

Trinseo SA, the Bain Capital LLC- controlled plastics maker, sold $1.33 billion of bonds in the second-largest U.S. high-yield offering this year.

Trinseo issued 8.75 percent, six-year debt to yield 773 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The secured notes, rated B1 by Moody’s Investors Service, are a debut issue by the Berwyn, Pennsylvania-based company.

Proceeds will be used to fully repay the company’s term loan B and revolving credit facility, according to a person familiar with the transaction. The bonds are non-callable within 2.5 years, though, during that period, Trinseo can redeem 10 percent of the debt at 103 cents on the dollar each year.

Deutsche Bank AG led the offering, Bloomberg data show. Barclays Plc, HSBC Holdings Plc, Goldman Sachs Group Inc., Bank of Nova Scotia, Bank of Montreal, Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. also helped run the sale.

Trinseo planned to sell a $450 million issue in December 2011, according to a person familiar with that transaction, but pulled the offering from the market.

Aircraft maker Bombardier Inc. (BBD/B) is the largest issuer of dollar-denominated high-yield debt this year, selling $2 billion of bonds on Jan. 9, Bloomberg data show.

A message left for Catherine Maxey, a Trinseo spokeswoman, was not immediately returned. Deutsche Bank spokeswoman Mayura Hooper declined to comment.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net

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