By Paul A. Harris
St. Louis, Mo., June 14 - Kennametal, Inc.'s split-rated offering of $300 million senior notes due June 15, 2012 (Ba1/BBB) saw some play among high-yield accounts, according to a syndicate source.
The deal priced Friday at 99.629 to yield 7.253%, or a spread of 245 basis points.
Price talk was for a spread of 240-250 basis points.
Goldman Sachs & Co. and JP Morgan were the joint bookrunners. Lehman Brothers, Banc One Capital Markets, Inc., Fleet Securities, Inc., PNC Capital Markets, Inc. and Tokyo-Mitsubishi International plc were the co-managers.
Proceeds from the registered deal will be used to fund the acquisition of Widia Group and for capital structure refinancing.
The issuer is a Latrobe, Pa.-based provider of high tech tools, tooling systems and engineering services.
Issuer: Kennametal, Inc.
Amount: $300 million
Maturity: June 15, 2012
Type: Senior notes
Bookrunners: Goldman Sachs, JP Morgan (joint)
Co-managers: Lehman Brothers, Banc One Capital Markets, Fleet Securities, PNC, TMI
Coupon: 7.20%
Price: 99.629
Yield: 7.253%
Spread: 245 basis points
Price talk: 240-250 basis points
Call features: Make-whole call at T+40 basis points
Settlement date: June 19, 2002
Ratings: Moody's: Ba1
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