By Paul A. Harris
St. Louis, Dec. 16 - Edgen Murray Corp. moved up timing and priced a restructured $465 million issue of 12¼% five-year senior secured notes (Caa1/B/) at 99.059 to yield 12½% on Wednesday, according to informed sources.
The issue priced on top of price talk.
Timing was moved up to late Wednesday; the deal was initially expected to price on Thursday.
The restructuring included decreasing the maturity of the notes to five years from seven years and decreasing the call protection to three years from four years.
J.P. Morgan Securities Inc. and Jefferies & Co. were joint bookrunners. Barclays Capital Inc. and HSBC Securities were co-managers.
Proceeds will be used to repay bank debt.
The issuer is a Baton Rouge, La.-based industrial distributor of steel products, primarily to the oil and gas industry.
| Issuer: | Edgen Murray Corp.
|
| Face amount: | $465 million
|
| Proceeds: | $460,624,000 (approximate)
|
| Maturity: | Jan. 15, 2015 (maturity decreased to five years from seven years)
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Jefferies & Co., Inc.
|
| Co-managers | Barclays Capital Inc., HSBC Securities (USA) Inc.
|
| Coupon: | 12¼%
|
| Price: | 99.059
|
| Yield: | 12½%
|
| Spread: | 1,014 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2013, then callable at 106.125, par on and after Jan. 15, 2014 (call protection decreased to three years from four years)
|
| Equity clawback: | 35% at 112.25 until Jan. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 16
|
| Settlement date: | Dec. 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 12½% area yield, at a discount
|
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