By Paul A. Harris
St. Louis, July 15 - United States Can Co. sold $125 million of senior secured second priority notes due July 15, 2010 (B3/CCC+) at par Tuesday to yield 10 7/8%, according to an informed source.
Price talk was for a yield in the 11% area.
Citigroup was the bookrunner on the Rule 144A/Regulation S offering.
Proceeds will be used to fund a partial paydown of the company's senior secured credit facility, for working capital and for general corporate purposes.
The issuer is a subsidiary of U.S. Can Corp., a Lombard, Ill.-based producer of steel containers for personal care, household, automotive, paint and industrial products.
| Issuer: | United States Can Co.
|
| Amount: | $125 million
|
| Maturity: | July 15, 2010
|
| Security description: | Senior secured second priority notes
|
| Bookrunner: | Citigroup
|
| Coupon: | 10 7/8%
|
| Price: | Par
|
| Yield: | 10 7/8%
|
| Spread: | 751 basis points
|
| Call features: | Callable on July 15, 2007 at 105.438, then at 102.719, declining to par on July 15, 2009 and thereafter
|
| Equity clawback: | Until July 15, 2006 for 35% at 110.875
|
| Settlement date: | July 22, 2003
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Rule 144A Cusip: | 911674AG4
|
| Price talk: | 11% area
|
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