By Paul A. Harris
Portland, Ore., Dec. 12 - A. M. Castle & Co. priced a $225 million issue of 12¾% five-year senior secured notes (B3/B+/) at 96.5 to yield 13.741% on Monday, according to an informed source.
The coupon printed at the tight end of the 12¾% to 13% coupon talk. The reoffer price came on top of price talk.
Jefferies & Co., Inc. ran the books.
Proceeds will be used to help finance the acquisition of Tube Supply, Inc. and refinance existing debt.
Additional financing comes by way of a $50 million offering of convertible senior notes due 2017 and a $100 million asset-based revolver.
Oak Brook, Ill.-based A. M. Castle is a global distributor and processor of specialty metals and industrial plastic products.
| Issuer: | A. M. Castle & Co.
|
| Face amount: | $225 million
|
| Proceeds: | $217,125,000
|
| Maturity: | Dec. 15, 2016
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies & Co., Inc.
|
| Coupon: | 12¾%
|
| Price: | 96.5
|
| Yield: | 13.741%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 106.375, par on or after Dec. 15, 2015
|
| Equity clawback: | 35% at 112.75 until Dec. 15, 2014
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distinction: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 12¾% to 13% coupon at 96.5
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
