Published on 2/8/2021 in the Prospect News High Yield Daily.
New Issue: U.S. Steel prices upsized $750 million 6 7/8% eight-year notes at par
By Taylor Fox
New York, Feb. 8 – United States Steel Corp. priced an upsized $750 million of 6 7/8% eight-year senior notes (Caa2/B-/CCC+) at par on Monday, according to a news release and an FWP filing with the Securities and Exchange Commission.
The public offering was upsized from $500 million.
Initial guidance had the notes coming to yield 7% to 7¼%, according to a trader.
Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC are joint bookrunning managers.
The proceeds will be used, together with cash on hand, to redeem the remaining $687 million of outstanding senior secured notes due 2025 and pay related fees and expenses.
U.S. Steel is an integrated steel producer based in Pittsburgh.
| Issuer: | United States Steel Corp.
|
| Issue: | Senior notes
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| Amount: | $750 million
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| Maturity: | March 1, 2029
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| Bookrunners: | Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., Citizens Capital Markets, Inc., Fifth Third Securities, Inc., Huntington Securities, Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Coupon: | 6 7/8%
|
| Price: | Par
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| Yield: | 6 7/8%
|
| Spread: | 592 bps over Treasuries
|
| First call: | March 1, 2024 at 103.438
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| Change-of-control: | 101
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 11
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| Expected ratings: | Moody’s: Caa2
|
| S&P: B-
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| Fitch: CCC+
|
| Distribution: | SEC registered
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