Chemical Finance Digest, Nov. 14-18
4:14 PM MST | November 21, 2011 | By VINCENT VALK
Topping the headlines last week, biobased succinic acid maker BioAmber has filed for an IPO worth up to $150 million. The size and stake of the deal, which follows several other biobased chemical IPOs over the past year, has yet to be determined.
In M&A news, Michelman has acquired Clariant’s floor polish additives business. Financial details of the transaction were not disclosed.
In equity news, aside from the BioAmber IPO, the Cargill Trust has completed its sale of Mosaic shares, with Mosaic buying back 21.3 million shares from the trust. The shares are worth $1.2 billion, or $54.58 each.
FMC issued $300 million in new ten-year senior unsecured debt last week. The debt is rated ‘BBB+’ by S&P and ‘Baa1’ by Moody’s, in line with FMC’s corporate credit ratings. It will carry an interest rate of 3.95%.
Meanwhile, S&P has raised Univar’s credit rating one notch, to ‘B+’ from ‘B,’ while Moody’s has changed Koppers’ outlook to stable, from positive. "The ratings on Univar reflect its highly leveraged financial profile," says S&P credit analyst Henry Fukuchi. "The upgrade reflects our expectation that favorable business conditions and operating trends over the next couple of years will continue to support adequate cash flow generation and strong liquidity, as well as a modestly improving financial profile."
In macroeconomic news, U.S. housing starts fell 0.3%, to a 628,000 annual rate, though permits rose 10.9%, to a 653,000 annual rate. Also, U.S. industrial production rose 0.7% in October, driven by rises in mining and motor vehicle production. “The top-line result may be exaggerated, but the core production data remain solid, particularly when expectations are not very high,” says IHS Global Insight economist Michael Montgomery.
The week ahead will see Thanksgiving here in the U.S. Happy holidays, everyone!