New Issue: U.S. Steel prices upsized $275 million eight-year notes at par to yield 6 7/8%

By Paul A. Harris

Virginia Beach, Va., March 20 - United States Steel Corp. priced an upsized $275 million issue of eight-year senior notes (B1/BB/BB-) at par to yield 6 7/8% on Wednesday, according to a market source.

The yield printed at the wide end of the 6¾% to 6 7/8% yield talk.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $250 million.

The Pittsburgh-based integrated steel producer plans to use the proceeds to repurchase or repay debt and for general corporate purposes.

Issuer:	United States Steel Corp.
Amount:	$275 million, increased from $250 million
Maturity:	April 1, 2021
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co., Morgan Stanley & Co. LLC
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	540 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2017, then callable at 103.438, 101.719, par on and after April 1, 2019
Change-of-control put:	101%
Trade date:	March 20
Settlement date:	March 26
Ratings:	Moody's: B1
	Standard & Poor's: BB
	Fitch: BB-
Distribution:	SEC registered
Price talk:	6¾% to 6 7/8%
Marketing:	Quick to market

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