PPG announces $1.55 billion debt offering
Proceeds to be used to repay SigmaKalon ‘bridge’ financingPITTSBURGH, March 14, 2008 –
PPG Industries, Inc. (NYSE: PPG), today announced that yesterday it priced $1.55 billion in aggregate principal amount of senior notes. The sale of the notes is expected to close on or about March 18, subject to customary closing conditions.
Of the amount offered, $600 million of 5.75-percent senior notes will be due March 2013, $700 million of 6.65-percent senior notes will be due March 2018, and $250 million of 7.70-percent senior notes will be due March 2038. The senior notes are unsecured and will rank equally in right of payment with PPG’s existing and future unsecured senior indebtedness.
PPG intends to use the net proceeds of the offering, the majority of which will be converted to euros through a cross-currency swap, to repay amounts borrowed under a €1 billion ($1.5 billion) bridge loan agreement with multiple lenders, and Credit Suisse as administrative agent for those lenders, in connection with the acquisition of SigmaKalon Group, which closed Jan. 2, 2008.
PPG’s debt ratings remain unchanged by the note offering. Standard & Poor’s has assigned an “A-” rating to the notes, Moody’s Investor Service has assigned an “A3” rating to the notes, and Fitch Ratings has assigned an “A-” rating to the notes. In connection with the offering, Fitch Ratings also revised PPG’s outlook to stable from negative.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. are acting as joint book-running managers for the offering.About PPG
Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries. PPG’s sales in 2007 were $11.2 billion. SigmaKalon is a worldwide coatings producer based in Uithoorn, Netherlands, and had sales in 2007 of $2.9 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com
Statements in this news release relating to matters that are not historical facts are forward-looking statements reflecting the company's current view with respect to future events or objectives and financial or operational performance or results. These matters involve risks and uncertainties as discussed in PPG Industries' periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K, filed with the Securities and Exchange Commission. Accordingly, many factors could cause actual results to differ materially from the company's forward-looking statements.
Among these factors are increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials and energy, the ability to maintain favorable supplier relationships and arrangements, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, foreign exchange rates and fluctuations in such rates, the impact of environmental regulations, unexpected business disruptions and the unpredictability of possible future litigation, including litigation that could result if the asbestos settlement discussed in PPG's filings with the SEC does not become effective. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG's consolidated financial condition, operations or liquidity.
The offering is being made under a shelf registration statement filed with the U.S. Securities and Exchange Commission on August 2, 2007. This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offers of the senior notes will be made exclusively by means of a prospectus and prospectus supplement.
Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting Credit Suisse Securities (USA) LLC toll-free at 1-800-221-1037, Deutsche Bank Securities Inc. toll-free at 1-800-503-4611, J.P. Morgan Securities Inc. collect at 1-212-834-4533 or Morgan Stanley & Co. Incorporated toll-free at 1-866-718-1649. Potential investors should read the prospectus supplement, the prospectus in the registration statement and other documents PPG has filed with the SEC for more complete information about PPG and this offering. These documents can be obtained for free by visiting the SEC’s website at www.sec.gov. In addition, PPG, any underwriter or any dealer participating in the offering can provide the offering materials if requested. To obtain these materials from PPG, call Investor Relations at (412) 434-3318 or write to Investor Relations, PPG Industries, Inc., One PPG Place, Pittsburgh, PA 15272.