Giant Industries $200 million 10-year notes talk in 11½% area, to price Thursday

By Paul A. Harris

St. Louis, Mo., May 7 - Price talk of a yield in the 11½% area emerged Tuesday on Giant Industries, Inc.'s offering of $200 million 10-year senior subordinated notes (B2 existing/B), according to a syndicate source who added that the Rule 144A notes will price Thursday afternoon at a discount.

Banc of America Securities is the bookrunner, BNP Paribas is joint lead manager, and Fleet Securities co-manager.

The notes contain a make-whole call for the first five years and an equity clawback of 35% for three years.

The Scottsdale, Ariz.-based oil refiner and marketer will use proceeds to acquire the Yorktown Refinery in Virginia and to redeem its 9¾% senior subordinated notes due 2003.

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