By Paul A. Harris
Portland, Ore., May 21 – United States Steel Corp. priced an upsized $1 billion amount of 12% five-year senior secured notes (B2/B+) at 94.665 to yield 13½% on Thursday, according to market sources.
J.P. Morgan Securities LLC was the lead.
The issue size increased from $700 million.
The coupon came on top of coupon talk. The yield came in the middle of yield talk in the 13½% area. The issue price came cheap to price talk of approximately 95.
The Pittsburgh-based steel producer plans to use the proceeds, together with cash on hand, to tender for or redeem all of its 8 3/8% senior secured notes due 2021.
| Issuer: | United States Steel Corp.
|
| Amount: | $1 billion, increased from $700 million
|
| Maturity: | June 1, 2025
|
| Securities: | Senior secured notes
|
| Lead manager: | J.P. Morgan Securities LLC
|
| Coupon: | 12%
|
| Price: | 94.665
|
| Yield: | 13½%
|
| Call protection: | Two years
|
| Trade date: | May 21
|
| Settlement date: | May 29
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 12% coupon, 13½% area yield at approximately 95
|
| Marketing: | Drive-by
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
