MEDINA, Ohio, Feb. 27, 2017 /PRNewswire/ -- RPM International
Inc. (NYSE: RPM) today announced that it agreed to sell
$400 million aggregate principal
amount of 3.750% notes due March 15,
2027 (the "2027 Notes"), and an additional $50 million aggregate principal amount of 5.250%
notes due June 1, 2045 (the "2045
Notes" and, together with the 2027 Notes, the "Notes"). The
additional $50 million of 2045 Notes
have a yield to maturity of 4.839%.
The sale of the Notes is expected to close March 2, 2017, and is pursuant to the provisions
of an underwriting agreement dated February
27, 2017, among RPM and Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Wells Fargo Securities, LLC as
representatives of the underwriters.
RPM will pay interest on the 2027 Notes semiannually on
March 15 and September 15 of each year, beginning September 15, 2017. It will pay interest on the
2045 Notes semiannually on June 1 and
December 1 of each year, beginning
June 1, 2017.
The 2045 Notes offered will be consolidated with the
$250 million principal amount of
5.250% notes due 2045 issued by RPM on May 29, 2015. Together, they will form a single
series of 2045 Notes. The new 2045 Notes will have the same
CUSIP number as the previously issued 2045 Notes and will trade
interchangeably and rank equally in right of payment immediately
upon settlement. Upon consummation of the offering, the
aggregate principal amount of the 5.250% notes due 2045,
including the new 2045 Notes, will be $300
million.
The expected net proceeds from the offering of the Notes will be
approximately $448.9 million, after
deducting the underwriting discount and RPM's expenses related to
the offering. RPM intends to use the net proceeds to repay a
portion of the outstanding borrowings under its revolving credit
facility and for general corporate purposes.
This press release shall not constitute an offer to sell, nor
the solicitation of an offer to buy, any of the securities, nor
shall there be any sale of these securities, in any jurisdiction in
which such offer, solicitation or sale is not permitted. The
offerings of the Notes were registered under the Securities Act of
1933, as amended, and are being made pursuant to RPM's Registration
Statement on Form S-3 filed by RPM with the Securities and Exchange
Commission.
The Notes will be offered pursuant to an effective registration
statement previously filed with the SEC. Before investing,
investors should read the prospectus in the registration statement
and applicable prospectus supplement and other documents the
company has filed or will file with the SEC for more complete
information about the company and the offerings. These documents
may be obtained for free by visiting EDGAR on the SEC website.
Alternatively, RPM, or any underwriter or any dealer participating
in the offerings, will arrange to send interested parties copies of
the prospectus supplement and accompanying prospectus if requested
by contacting Merrill Lynch, Pierce, Fenner & Smith
Incorporated at 1-800-294-1322 or dg.prospectus_requests@baml.com
or by contacting Wells Fargo Securities, LLC at 1-800-645-3751.
About RPM
RPM International Inc. owns subsidiaries
that are world leaders in specialty coatings, sealants, building
materials and related services across three segments. RPM's
industrial products include roofing systems, sealants, corrosion
control coatings, flooring coatings and other construction
chemicals. Industrial companies include Stonhard, Tremco, illbruck,
Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex. RPM's
consumer products are used by professionals and do-it-yourselfers
for home maintenance and improvement and by hobbyists. Consumer
brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors.
RPM's specialty products include industrial cleaners, colorants,
exterior finishes, specialty OEM coatings, edible coatings,
restoration services equipment and specialty glazes for the
pharmaceutical and food industries. Specialty segment companies
include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser,
Legend Brands, Kop-Coat and TCI. Additional details can be found at
www.rpminc.com and by following RPM on Twitter at
www.twitter.com/RPMintl.
For more information, contact Barry M.
Slifstein, vice president – investor relations, at
330-273-5090 or bslifstein@rpminc.com.
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SOURCE RPM International Inc.