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Manitowoc faces higher cost of capital in its attempt to place new $300 million secured notes
By Paul A. Harris
Portland, Ore., March 11 – In a deal held in the market over the weekend, Manitowoc Co. Inc. is facing interest payments significantly higher than those it aimed for when it undertook the bond placement, market sources say.
Manitowoc’s $300 million offering of seven-year senior secured second-lien notes (B2/B) are expected to come with a rate in the 9% area, if at all, a trader said on Monday morning.
Initial guidance was in the low 8% area, sources say.
The deal, which is being led by J.P. Morgan Securities LLC, could price as early as Monday, the trader said.
The offering had previously been expected to price last Friday, at the conclusion of an investor roadshow.
The notes come with three years of call protection.
Milwaukee-based crane manufacturer is the market seeking to redeem its outstanding 12¾% senior secured second-lien notes due 2021 and to repay other debt.
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