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HIG Capital recoups investment in Cornerstone Chemical through PIK toggle

17 Mar 2014

chemicals5_lrgHIG Capital has reportedly returned more than its initial investment in Cornerstone Chemical after the company issued $75m in PIK toggle notes to pay a dividend to shareholders.

The private equity firm bought the business in 2011 when it was called Building Block Chemicals, a division of Cytec industries.

It produces chemicals including melamine, acrylonitrile and sulphuric acid used in industries such as water treatment, oil recovery and plastics manufacturing.

The newly-taken PIK debt has pushed Cornerstone’s adjusted financial leverage to more than five times according to Bloomberg, which cited data from Moody’s Investors Service.

It said the company generated revenues of about $600m last year.

Bridgepoint is currently said to be eyeing an exit of German chemical maker CABB, while last month Carlyle-backed chemicals company PQ Holdings filed to raise up to $450m by listing on the public markets.

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