By Paul A. Harris
Portland, Ore., Nov. 19 - U.S. Concrete Inc. priced a $200 million issue of restructured five-year senior secured notes (Caa1/B) at par to yield 8½% on Tuesday, according to market sources.
The maturity was reduced to five years from seven years.
With the reduction in maturity, price talk was also slashed: the yield printed on top of yield talk that had been downwardly revised from earlier talk of 9% to 9¼%.
J.P. Morgan Securities LLC was the bookrunner.
Proceeds will be used to repay bank debt and to redeem the company's 9½% notes due 2015.
The issuer is a Euless, Texas-based supplier of ready-mixed concrete and concrete-related products and precast concrete products.
| Issuer: | U.S. Concrete Inc.
|
| Amount: | $200 million
|
| Maturity: | Dec. 1, 2018 (maturity revised to five years from seven years)
|
| Securities: | Senior secured notes
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Senior co-manager: | Jefferies LLC
|
| Co-managers: | Capital One, Mitsubishi UFJ Securities (USA) Inc.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 715 bps
|
| Call protection: | Two years
|
| Trade date: | Nov. 19
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8½%, revised from 9% to 9¼%
|
| Marketing: | Roadshow
|
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