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.
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.