Edgen Murray downsizes to $535 million, talks eight-year notes at a discount to yield 8¾%-9%

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Oct. 5 - Edgen Murray Corp. plans to issue $535 million eight-year senior secured notes (Caa1/B+) at a discount to yield 8¾% to 9%, according to a market source.

The yield is to be inclusive of an approximately ¾ point original issue discount.

The notes were downsized from $575 million, as a seller note outstanding at the Bourland & Leverich subsidiary of Edgen Group, which was to be retired using the proceeds from the bonds, will now remain in place after closing.

Books close at 12:30 p.m. ET on Friday.

Jefferies & Co., Morgan Stanley & Co. LLC and Bank of America Merrill Lynch are the joint bookrunners.

HSBC Securities (USA) LLC is the co-manager for the Rule 144A and Regulation S for life deal.

The notes will be callable in three years at par plus 75% of the coupon.

The Baton Rouge, La., steel company plans to use the proceeds to repay debt, including the 12¼% senior secured notes.

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