By Paul A. Harris
Portland, Ore., Jan. 4 – In the first high-yield bond deal to clear the market in 2017, U.S. Concrete, Inc. priced a $200 million add-on to its 6 3/8% senior notes due June 1, 2024 (B2/BB-) at 105.75 to yield 5.14% on Wednesday, according to a bond trader in New York.
The reoffer price came in the middle of the 105.25 to 105.875 price talk but rich to the 105 to 105.25 guidance sources said.
Secondary market activity in the freshly minted 6 3/8% add-on notes was light, the trader said.
J.P. Morgan Securities LLC managed the sale.
The Euless, Texas-based supplier of ready-mixed concrete and concrete-related products plans to use the proceeds for general corporate purposes, including future acquisitions to expand its business.
| Issuer: | U.S. Concrete, Inc.
|
| Face amount: | $200 million
|
| Proceeds: | $211.5 million
|
| Maturity: | June 1, 2024
|
| Security description: | Add-on to 6 3/8% senior notes due June 1, 2024
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 6 3/8%
|
| Price: | 105.75
|
| Yield: | 5.14%
|
| First call date: | June 1, 2019
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 9 with accrued interest
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5¼% to 5 7/8%
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced at par on May 23, 2016
|
| Fungibility: | Following consummation of exchange offer for the original notes the add-on notes and the original notes will become fungible
|
| Total issue size: | $600 million
|
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