Evraz NA Canada sets roadshow for $500 million five-year notes offer

By Paul A. Harris

Portland, Ore., Oct. 27 – Evraz Inc. NA Canada began a roadshow on Monday in New York and New Jersey for a $500 million offering of five-year senior secured notes, according to a syndicate source.

The roadshow continues on Tuesday in New York and New Jersey, moves to Boston on Wednesday and to the West Coast of the United States on Thursday and Friday.

Joint bookrunner Citigroup Global Markets will bill and deliver for the Rule 144A for life offering. Goldman Sachs & Co. is also a joint bookrunner.

Credit Agricole CIB, ING, Moelis, SG CIB and UBS Investment Bank are the co-managers.

The notes come with 2.5 years of call protection, after which they become callable at par plus 50% of the coupon for six months. Thereafter the call premium declines to par plus 25% of the coupon for the following 12 months, after which the notes become callable at par until maturity.

The notes also feature a 2.5-year 35% equity clawback at par plus the coupon and a 101% poison put.

In addition the notes feature the usual and customary incurrence-based high-yield covenants.

The Regina, Sask.,-based steel producer plans to use the proceeds to repay a portion of the subordinated related party loan from an affiliate of Evraz Group SA.

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