Hexion, Inc.’s $450 Million Senior Notes Offering

Davis Polk advised the initial purchasers on a Rule 144A/Regulation S offering by Hexion Inc. of $450 million aggregate principal amount of 7.875% senior notes due 2027.

The notes were offered in connection with Hexion’s emergence from proceedings under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Based in Columbus, Ohio, Hexion is one of the world’s largest producers of thermosetting resins and a leading producer of coatings, adhesives and specialty resins. Hexion’s products are used in applications such as forest products, architectural and industrial paints, packaging, consumer products, composites and automotive coatings.

Latham & Watkins LLP is serving as legal counsel, Moelis & Company LLC served as financial advisor, and AlixPartners, LLP served as restructuring advisor to Hexion.

JPMorgan Chase Bank, N.A. acted as Administrative Agent, Credit Suisse Loan Funding LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Barclays Bank PLC and Deutsche Bank Securities Inc. acted as as Joint Lead Arrangers, Joint Bookrunners, Syndication Agents on the deal.

The Davis Polk capital markets team included partner Michael Kaplan (Picture), counsel Jeffrey S. Ramsay and associates Gil Savir and Alexandros Souris. The restructuring team included partner Eli J. Vonnegut and associate Jacob Weiner. The tax team included partner Rachel D. Kleinberg and associate Tomislava Dragicevic. Counsel Charles Shi provided ERISA advice.

Involved fees earner: Tomislava Dragicevic – Davis Polk & Wardwell; Michael Kaplan – Davis Polk & Wardwell; Rachel Kleinberg – Davis Polk & Wardwell; Jeffrey Ramsay – Davis Polk & Wardwell; Gil Savir – Davis Polk & Wardwell; Charles Shi – Davis Polk & Wardwell; Alexandros Souris – Davis Polk & Wardwell; Eli Vonnegut – Davis Polk & Wardwell; Jacob Weiner – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Barclays Bank; Citigroup Global Markets Ltd; Credit Suisse; Deutsche Bank Securities; Goldman Sachs; JPMorgan Chase & Co.;

Author: Ambrogio Visconti