New Issue: Hawk upsized $110 million 10-year notes yield 8¾%

By Paul A. Harris

St. Louis, Oct. 25 - Hawk Corp. priced an upsized $110 million of 10-year senior notes (B2/B) at par to yield 8¾% on Monday, according to an informed source.

Price talk was 8¾% to 8 7/8%.

Jefferies & Co. ran the books for the Rule 144A/Regulation S issue with registration rights.

Proceeds will be used to fund the tender offer for $66.3 million of the company's 12% senior notes due 2006 and to repay bank debt.

Hawk is a Cleveland-based supplier of highly engineered friction products.

Issuer:	Hawk Corp.
Amount:	$110 million (increased from $100 million)
Maturity:	Nov. 1, 2014
Security description:	Senior notes
Bookrunner:	Jefferies & Co.
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	478 basis points
Call features:	Callable on or after Nov. 1, 2009 at 104.375, 103.281, 102.188, 101.094, par on or after Nov. 1, 2013
Equity clawback:	For 35% at 108.75 before Nov. 1, 2008
Pricing date:	Oct. 25
Settlement date:	Nov. 1
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	8¾%-8 7/8%

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