By Paul A. Harris
St. Louis, May 1 - United Refining Co. priced an upsized $125 million face amount add-on to its 10½% senior notes due Aug. 15, 2012 (B3/B) at 104.25 on Tuesday, resulting in a yield to worst of 8.966%, according to an informed source.
The reoffer price came in the middle of the 104.00 to 104.50 price talk.
The sale, which was upsized from an initial face amount of $100 million, generated $130.313 million of proceeds.
Morgan Stanley was the bookrunner for the Rule 144A with registration rights and Regulation S add-on.
Proceeds will be used for capital expenditures and general corporate purposes.
The original $200 million issue priced at 98.671 to yield 10¾% on Aug. 3, 2004.
The Warren, Pa., refiner and operator of gas stations and convenience stores also priced a $25 million add-on at 103.0 to yield 9.781% on Feb. 10, 2005.
The total issue size following Tuesday's $125 million transaction is $350 million.
| Issuer: | United Refining Co.
|
| Amount: | $125 million (increased from $100 million)
|
| Proceeds: | $130.313 million (approximately)
|
| Maturity: | Aug. 15, 2012
|
| Security description: | Add-on to senior notes due Aug. 15, 2012
|
| Bookrunner: | Morgan Stanley
|
| Coupon: | 10½%
|
| Price: | 104.25
|
| Yield to worst: | 8.966%
|
| Spread: | 445 bps
|
| Call features: | Treasuries plus 50 basis points make-whole call until Aug. 15, 2008, then callable at 105.25, 102.625, par on or after Aug. 15, 2010
|
| Equity clawback: | Until Aug. 15, 2007 for 35% at 110.50
|
| Trade date: | May 1
|
| Settlement date: | May 4 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 104.0 to 104.50
|
| Previous issue: | $200 million priced at 98.671 to yield 10¾% on Aug. 3, 2004; $25 million add-on priced at 103.0 to yield 9.781% on Feb. 10, 2005
|
| Total issue size: | $350 million
|
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