By Paul A. Harris
St. Louis, June 29 - U.S. Concrete Inc. priced an upsized $85 million add-on to its 8 3/8% senior subordinated notes due April 1, 2014 (B3/B-) at 98.26 to yield 8.684% on Thursday, according to an informed source.
The dollar price came wide of the 99 to 99.50 price talk.
Citigroup ran the books for the Rule 144A with registration rights add-on. Banc of America Securities LLC was the joint lead manager.
Proceeds will be used to fund a portion of the purchase price of the company's pending acquisition of Alberta Investments, Inc. and Alliance Haulers, Inc.
The issuer is a Houston-based company that provides ready-mixed concrete and related concrete products and services to the construction industry in several U.S. markets.
The add-on was upsized from $75 million.
The original $200 million issue priced at par on March 26, 2004.
| Issuer: | U.S. Concrete Inc.
|
| Amount: | $85 million (increased from $75 million)
|
| Maturity: | April 1, 2014
|
| Security description: | Add-on to 8 3/8% senior subordinated notes
|
| Bookrunner: | Citigroup
|
| Joint lead manager: | Banc of America Securities LLC
|
| Coupon: | 8 3/8%
|
| Price: | 98.26
|
| Yield: | 8.684%
|
| Spread: | 346 bps
|
| Call features: | Callable after April 1, 2009 at 104.188, 102.792, 101.396, par on or after April 1, 2012
|
| Equity clawback: | Until April 1, 2007 for 35% at 108.375
|
| Trade date: | June 29
|
| Settlement date: | July 5 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 99 to 99.50
|
| Original issue: | $200 million priced at par on March 26, 2004
|
| Total issue size: | $285 million
|
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