By Paul A. Harris
Portland, Ore., April 15 - American Rock Salt Co. LLC and American Rock Salt Capital Corp. priced a downsized $175 million issue of seven-year second-lien senior secured notes (B3/CCC+/) at par to yield 8¼% on Friday, according to an informed source.
The yield printed at the tight end of price talk, which had been set in the 8 3/8% area.
Morgan Stanley & Co. Inc. ran the books for the deal, which was downsized from $200 million. RBS Securities Inc. was the co-manager.
In addition to downsizing the bonds, the Retsof, N.Y.-based rock salt producer increased its term loan to $300 million from $250 million.
The overall amount of debt financing increased to $475 million from $450 million.
Proceeds will be used to repay debt at the holding company and fund a dividend. The additional proceeds generated by the upsizing of the overall debt financing will be used to increase the dividend.
| Issuer: | American Rock Salt Co. LLC and American Rock Salt Capital Corp.
|
| Amount: | $175 million, decreased from $200 million with $25 million shifted to bank loan
|
| Maturity: | May 1, 2018
|
| Securities: | Second-lien senior secured notes
|
| Bookrunner: | Morgan Stanley & Co. Inc.
|
| Co-manager: | RBS Securities Inc.
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 545 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 1, 2014, then callable at 104.125, 102.063, par on and after May 1, 2016
|
| Equity clawback: | 35% at 108.25 until May 1, 2014
|
| Trade date: | April 15
|
| Settlement date: | April 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8 3/8% area
|
| Marketing: | Roadshow
|
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