Published on 10/5/2012 in the Prospect News High Yield Daily.
New Issue: Edgen Murray prices downsized $540 million 8¾% notes due 2020 to yield 8 7/8%
By Paul A. Harris
Portland, Ore., Oct. 5 - Edgen Murray Corp. priced a downsized $540 million issue of 8¾% eight-year senior secured notes (Caa1/B+/) at 99.285 to yield 8 7/8% on Friday, according to an informed source.
The yield printed in the middle of the 8¾% to 9% yield talk. The reoffer price came in line with price talk, which specified an original issue discount of approximately ¾ point.
The deal was downsized from $575 million. In connection with the downsizing, 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.
Jefferies & Co., Morgan Stanley & Co. LLC and Bank of America Merrill Lynch were the joint bookrunners.
The Baton Rouge, La.-based steel company plans to use the proceeds to repay debt, including its 12¼% senior secured notes.
Issuer: | Edgen Murray Corp.
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Face amount: | $540 million, downsized from $575 million
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Proceeds: | $536.14 million
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Maturity: | Nov. 1, 2020
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Securities: | Senior secured notes
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Bookrunners: | Jefferies & Co., Morgan Stanley & Co. LLC, Bank of America Merrill Lynch
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Co-manager: | HSBC Securities (USA) Inc.
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Coupon: | 8¾%
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Price: | 99.285
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Yield: | 8 7/8%
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Call features: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2015, then callable at 106.563, 104.375, 102.188, par on and after Nov. 1, 2018
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Equity clawback: | 35% at 108.75 until Nov. 1, 2015
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Change-of-control put: | 101%
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Trade date: | Oct. 5
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Settlement date: | Oct. 16
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Ratings: | Moody's: Caa1
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| Standard & Poor's: B+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 8¾% to 9% yield including approximately ¾ point OID
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Marketing: | Roadshow
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