By Christine Van Dusen
Atlanta, Sept. 23 - Brazil's Gerdau Trade Inc. priced $1.25 billion of 5¾% senior notes due Jan. 30, 2021 (/BBB-/BBB-) at 99.051 to yield 5 7/8%, or Treasuries plus 333.8 basis points, according to a market source.
The deal came at the tight end of talk for a yield in the 6% area.
HSBC, Santander and JPMorgan were the bookrunners for the Rule 144A and Regulation S transaction.
The notes are non-callable.
Proceeds will be used to repay indebtedness and for general corporate purposes.
Gerdau Trade is a subsidiary of Gerdau SA, a Porto Alegre, Brazil-based steelmaker.
| Issuer: | Gerdau Trade Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 30, 2021
|
| Bookrunners: | HSBC, Santander, JPMorgan
|
| Coupon: | 5¾%
|
| Price: | 99.051
|
| Yield: | 5 7/8%
|
| Spread: | Treasuries plus 333.8 bps
|
| Call features: | Non-callable
|
| Trade date: | Sept. 23
|
| Settlement date: | Oct. 1
|
| Ratings: | Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 6% area
|
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