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U.S. Concrete sets Friday record date for $50 million notes offering
By Caroline Salls
Pittsburgh, July 29 - U.S. Concrete, Inc. set the close of business on July 30 as the record date for its proposed offering of $50 million of secured convertible notes to holders of its 8 3/8% senior subordinated notes due 2014, according to an 8-K filed Thursday with the Securities and Exchange Commission.
As previously reported, U.S. Concrete, Inc. entered into a purchase letter with Monarch Alternative Capital, LP, Whitebox Advisors, LLC and York Capital Management Global Advisors, LLC that grants a put option under which U.S. Concrete would be required to buy a total of $50 million of convertible secured notes.
Under the purchase letter, other holders of U.S. Concrete's 8 3/8% senior subordinated notes due 2014 will have the opportunity to purchase convertible notes in amounts up to their existing note holdings if they are qualified institutional buyers or institutional accredited investors.a
The amount of notes purchased by the existing noteholders will reduce the total commitment of the put option parties.
The notes will mature in five years and accrue interest at 9.5%.
The conversion price will be 5% above the equity value based on the mid-point enterprise valuation of $194 million less estimated net debt at issuance.
Proceeds of the convertible notes will be used to repay the company's debtor-in-possession facility in full and for working capital and general corporate purposes.
U.S. Concrete, a Houston-based cement manufacturer, filed for bankruptcy on April 29 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 10-11407.
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