Eastman Chemical Company (NYSE:EMN) has announced a cash tender offer to purchase up to $250 million of its outstanding 3.800% notes due 2025. The company has commenced this tender offer, which will expire at 5:00 p.m., New York City time, on August 26, 2024, unless extended or earlier terminated.
The principal amount outstanding of the 3.800% notes due 2025 is $699,992,000, and the tender cap is set at $250,000,000. The U.S. reference treasury security is the 1.750% UST due 03/15/2025, with a fixed spread of 22.5 basis points and an early tender premium of $30 per $1,000.
Holders of the notes need to tender their notes at or prior to 5:00 p.m., New York City time, on August 9, 2024, unless extended, to be eligible to receive the total consideration, which includes the early tender premium. Any notes tendered may be validly withdrawn at any time at or prior to 5:00 p.m., New York City time, on August 9, 2024, but may not be withdrawn thereafter except in certain limited circumstances.
The company reserves the right, subject to compliance with applicable law, to increase, decrease, or eliminate the tender cap without extending the early tender deadline, the withdrawal deadline, or the expiration date. The tender offer is not conditioned upon the tender of any minimum principal amount of the notes.
The company has retained D.F. King & Co., Inc. as the tender agent and information agent, and Barclays Capital Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC as dealer managers for the tender offer.
Eastman Chemical Company, founded in 1920, is a global specialty materials company with approximately 14,000 employees worldwide. It serves customers in more than 100 countries and had 2023 revenue of approximately $9.2 billion. The company is headquartered in Kingsport, Tennessee, USA. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $101.54. For more information, read the company's full 8-K submission here.
