By Andrea Heisinger
New York, April 9 - Reliance Steel & Aluminum Co. sold $500 million of 4.5% 10-year senior notes (Baa3/BBB/) during Tuesday's session at a spread of Treasuries plus 280 basis points, an informed source told Prospect News.
There was a do-not-grow provision on the size of the sale.
Pricing was at 99.585 to yield 4.552%
The notes have a make-whole call option at Treasuries plus 45 bps until Jan. 15, 2023 and a par call after that date.
There is a change-of-control put option at 101.
Active bookrunners were BofA Merrill Lynch and J.P. Morgan Securities LLC. Wells Fargo Securities LLC was passive.
Proceeds are being used to finance a portion of the acquisition of Metals USA Holdings Corp. and its subsidiaries.
There is a mandatory call at 101 if the acquisition is not closed by Dec. 15 or if a merger termination event occurs.
The trade is guaranteed by the domestic subsidiaries that are a borrower or guarantor under a credit agreement or the company's 6.2% notes due 2016 and 6.85% notes due 2036.
The metals service center company is based in Los Angeles.
| Issuer: | Reliance Steel & Aluminum Co.
|
| Guarantor: | Domestic subsidiaries that are a borrower or guarantor under a credit agreement or the company's 6.2% notes due 2016 and 6.85% notes due 2036
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2023
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC (active), Wells Fargo Securities LLC (passive)
|
| Senior co-managers: | Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA) Inc., PNC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC
|
| Coupon: | 4.5%
|
| Price: | 99.585
|
| Yield: | 4.552%
|
| Spread: | Treasuries plus 280 bps
|
| Call option: | Make-whole at Treasuries plus 45 bps to Jan. 15, 2023 and par call after
|
| Mandatory call: | At 101 if Metals USA acquisition is not closed by Dec. 15 or if merger termination event occurs
|
| Change-of-control put: | At 101
|
| Trade date: | April 9
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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