Published on 3/16/2010 in the Prospect News High Yield Daily.
New Issue: U.S. Steel upsizes to $600 million, prices 7 3/8% 10-year notes at 99.125 to yield 7½%
By Paul A. Harris
St. Louis, March 16 - United States Steel Corp. priced an upsized $600 million issue of 7 3/8% 10-year senior notes (Ba2/BB/BB+) at 99.125 to yield 7½% on Tuesday, according to an informed source.
The yield printed at the tight end of the 7½% to 7 5/8% price talk.
Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc. were joint bookrunners for the issue, which was upsized from $500 million.
Co-lead managers were UBS Securities LLC and Credit Suisse Securities (USA) LLC.
Co-managers were PNC Capital Markets LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., BNY Mellon Capital Markets, LLC, RBS Securities Inc., Commerzbank Capital Markets Corp. and ING Financial Markets LLC.
Proceeds will be used for general corporate purposes.
The issuer is a Pittsburgh-based steel company.
| Issuer: | United States Steel Corp.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | April 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Securities Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc.
|
| Co-lead managers: | UBS Securities LLC, Credit Suisse Securities (USA) LLC
|
| Co-managers: | PNC Capital Markets LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., BNY Mellon Capital Markets, LLC, RBS Securities Inc., Commerzbank Capital Markets Corp., ING Financial Markets LLC
|
| Coupon: | 7 3/8%
|
| Price: | 99.125
|
| Yield: | 7½%
|
| Spread: | 382 bps
|
| Call protection: | Non-callable (make-whole at Treasuries plus 50 bps)
|
| Change-of-control put: | 101%
|
| Trade date: | March 16
|
| Settlement date: | March 19
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 7½% to 7 5/8%
|
| Marketing: | Quick-to-market
|
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