Celanese Kicks Off Bond Sale to Fund $1.75 Billion Cash Tender Offer

Celanese Corp. tapped the US investment-grade bond market Thursday to help pay for a cash tender offer.

(Bloomberg) — Celanese Corp. tapped the US investment-grade bond market Thursday to help pay for a cash tender offer.

The Irving, Texas-based chemicals company sold $3 billion of debt in a three-part deal, according to a person familiar with the matter who asked not to be identified as the details are private. The longest portion of the debt offering, a 10-year fixed-rate note, yields 2.6 percentage points over Treasuries after initial pricing discussions of around 2.95 percentage points, said the person.

Proceeds from the sale will help fund a tender offer for as much as $1.75 billion, which was also announced Thursday. Celanese is looking to buy back three bonds maturing between May 2024 and March 2025, the company said in a statement. BofA Securities Inc., JPMorgan Securities LLC and TD Securities LLC are leading the tender offer, which is set to expire on Sept. 8.

Funds raised from the bond sale may also go toward repaying outstanding debt and general corporate purposes.

Celanese last tapped the bond market in July 2022, selling $7.5 billion of investment-grade notes to finance its purchase of the majority of DuPont de Nemours Inc.’s mobility and materials arm.

At least one other company was also in the high-grade bond market Thursday. Oneok Inc. sold $5.25 billion of bonds in a five-part offering to help fund its acquisition of Magellan Midstream Partners LP, according to a person familiar with the matter who asked not to be identified as the details are private.

The longest portion of that transaction, a 30-year fixed-rate note, yields 2.4 percentage points over Treasuries after initial pricing discussions of around 2.75 percentage points, said the person.

Celanese and Oneok follow a string of investment-grade issuers this week. McDonald’s Corp. and Toyota Motor Credit Corp. brought deals on Wednesday, after at least eight issuers sold new deals the day before.

Representatives for Celanese and Oneok didn’t respond to requests for comment.

–With assistance from Allison Nicole Smith and Allan Lopez.

(Adds Oneok deal pricing details in the sixth paragraph.)

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