Harsco withdraws $250 million notes offer, cites market conditions

By Paul A. Harris

Portland, Ore., June 5 – Harsco Corp. cited market conditions as it withdrew its proposed $250 million offering of five-year senior notes (Ba1/BB/BBB-).

In a late Friday press release the company also stated that as a result of its decision not to proceed with its notes offering, it has terminated a cash tender offer for any and all of its outstanding 2.7% senior notes due 2015.

The company continues to have adequate liquidity of approximately $400 million, the release stated.

The five-year notes were marketed during a roadshow during the early part of the June 1 week, at the conclusion of which yield talk of 6% to 6¼% surfaced, according to an informed source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Bank, J.P. Morgan Securities LLC, MUFG, RBC Capital Markets and U.S. Bancorp Investments Inc. were the joint bookrunners.

In addition to funding the tender, the Camp Hill, Pa.-based industrial services and engineered products company planned to use any remaining proceeds to repay revolver debt and for general corporate purposes.

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