Edgen to price $30 million add-on to 9 7/8% senior notes

By Paul A. Harris

St. Louis, Dec. 1 - Edgen Acquisition Corp., a financing subsidiary of Edgen Corp., began a roadshow Thursday for a $30 million add-on to its 9 7/8% senior secured notes due Feb. 1, 2011 (existing ratings B3/B-).

The deal is expected to price in the middle of the Dec. 5 week.

Jefferies & Co. has the books for the add-on notes that will be priced via Rule 144A with registration rights and Regulation S.

The notes contain a make-whole call at Treasuries plus 50 basis points until Feb. 1, 2008 and then become callable at 104.938. The notes also contain an equity clawback until Feb. 1, 2007 for 35% at 109.875.

Proceeds will be used to finance the acquisition of Murray International Metals Ltd. U.S. and to repay a portion of Edgen's revolving credit facility.

The original $105 million issue priced at par on Jan. 25, 2005.

In a related transaction, Murray International Metals Ltd. is concurrently in the market with a $125 million offering of five-year senior secured floating-rate notes, also via Jefferies (see related story in this issue).

On Thursday, Edgen Corp. announced that Jefferies Capital Partners, its principal shareholder, has agreed to acquire Murray International Metals through a newly formed acquisition company. Upon completion of the transaction, a new holding company formed by Edgen's shareholders called Edgen/Murray, LP, will own 100% of both Edgen and Murray International Metals.

In a related transaction, Edgen will purchase the equity interests of subsidiary Murray International Metals, Inc. U.S. Edgen/Murray, LP will be owned by Jefferies Capital Partners, the management teams of Edgen, Murray International Metals and Murray International Holdings.

Edgen, based in Baton Rouge, La., is a distributor of specialty steel pipe, fittings and flanges for use in niche applications, primarily in the oil and gas, processing and power generation industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.