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Evraz $650 million seven-year note sale withdrawn on pricing concerns
By Paul Deckelman
New York, Oct. 13 - Evraz Inc. NA and Evraz NA Canada have withdrawn their planned $650 million offering of seven-year senior notes (/B/), high yield syndicate sources said on Wednesday.
Those sources said that the company had pulled the deal not so much because of market conditions - the usual culprit when junk deals have fallen by the wayside - but due to what one called "pricing sensitivity."
There was no official confirmation that the deal had been pulled from the company, a Portland, Ore.-based unit of Russian steel giant Evraz Group SA. The North American unit, which has steel-making operations in the United States and Canada, had planned to use the proceeds from the bond sale to refinance existing intercompany debt owed to its corporate parent.
The bonds had been expected to price this week, following a road show which had begun last week.
They were to have been sold under Rule 144A for life, and to carry four years of call protection.
The deal was to have been brought to market via joint book runners Credit Suisse Securities (USA) LLC and Barclays Capital Inc.
A lengthy roster of other investment banks in subordinate roles was also involved with the deal - BNP Paribas Securities Corp., Commerzbank, Credit Agricole CIB, Deutsche Bank Securities, Inc., ING, Natixis Bleichroeder LLC, RBS Securities Inc., SG CIB, UBS Investment Bank and UniCredit.
The apparent withdrawal from the market by Evraz was the first such pullback since LodgeNet Interactive Corp. decided in late September to put its $435 million offering of six-year senior secured second-lien notes on hold so the company could seek other financing alternatives.
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