Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers E > Headlines for Essar Steel Minnesota LLC > News item |
Essar Steel extensively restructures $450 million notes offering, sets talk and timing
By Paul A. Harris
Portland, Ore., May 6 - Essar Steel Minnesota LLC restructured its $450 million offering of senior secured notes (Caa1/CCC+/), a syndicate source said on Tuesday.
The maturity of the bonds decreased to six years from seven year.
Call protection now covers the entire life of the bond, increased from four years.
There are also covenant changes.
Price talk sets out an 11½% coupon at approximately 2 points of original issue discount to yield 12%.
Books close at 10:30 a.m. ET on Wednesday.
Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Jefferies & Co. are joint bookrunners for the Rule 144A and Regulation S offering.
The iron ore producer in northern Minnesota, part of India-based Essar Group, plans to use the proceeds to complete construction on its facility and begin commercial operations.
The original issue discount and extra interest reserve will be funded by new equity.
Also, additional equity will be used for the project reserve escrow account.
© 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.