By Paul A. Harris
Portland, Ore., July 8 – Magnetation LLC and Mag Finance Corp. priced a $100 million add-on to their non-callable 11% senior notes due May 15, 2018 (B3/B-/) at 108.75 to yield 8.388% on Tuesday, according to a market source.
The reoffer price came at the rich end of the 108.25 to 108.75 price talk.
J.P. Morgan Securities LLC, BMO Securities and Jefferies LLC were the joint bookrunners.
The Grand Rapids, Mich.-based iron ore producer plans to use the proceeds to fund working capital and for general corporate purposes.
| Issuer: | Magnetation LLC and Mag Finance Corp.
|
| Face amount: | $100 million
|
| Proceeds: | $109 million
|
| Maturity: | May 15, 2018
|
| Security description: | Add-on to 11% senior notes due May 15, 2018
|
| Bookrunners: | J.P. Morgan Securities LLC, BMO Securities, Jefferies LLC
|
| Coupon: | 11%
|
| Price: | 108.75
|
| Yield to maturity: | 8.388%
|
| Spread: | 695 bps
|
| Call protection: | Non-callable
|
| Trade date: | July 8
|
| Settlement date: | July 11 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule144A and Regulation S for life
|
| Price talk: | 108.25 to 108.75
|
| Marketing: | Quick to market
|
| Original issue: | $325 million issue priced at par in May 2013
|
| Fungibility: | Add-on notes will immediately be fungible with the original notes
|
| Total issue size: | $425 million
|
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