By Paul A. Harris
Portland, Ore., Sept. 9 – U.S. Concrete, Inc. priced an upsized $400 million issue of 8.5-year senior notes (B3/BB-) at par to yield 5 1/8% on Wednesday, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of yield talk in the 5¼% area. Initial guidance was in the mid-5% area.
The deal was heard to be playing to $2 billion of orders at noon ET on Wednesday, a trader said.
BofA Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Capital One Securities Inc., MUFG, RBC Capital Markets Corp. and Truist Securities Inc. were the joint bookrunners.
The Euless, Tex.-based producer of concrete and heavy construction aggregates plans to use the proceeds, together with available borrowings under its revolver, to redeem $300 million of the $600 million outstanding 6 3/8% senior notes due 2024.
| Issuer: | U.S. Concrete, Inc.
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| Amount: | $400 million, increased from $300 million
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| Maturity: | March 1, 2029
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| Securities: | Senior notes
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Capital One Securities Inc., MUFG, RBC Capital Markets Corp. and Truist Securities Inc.
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| Coupon: | 5 1/8%
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| Price: | Par
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| Yield: | 5 1/8%
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| Spread: | 455 bps
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| Call protection: | Three years
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| Trade date: | Sept. 9
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| Settlement date: | Sept. 23
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| Ratings: | Moody's: B3
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5¼% area
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| Marketing: | Roadshow
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