McJunkin Red Man talks $1 billion secured notes due 2016 to yield 10% area with 2-3 points OID

By Paul A. Harris

St. Louis, Dec. 15 - McJunkin Red Man Corp. talked its $1 billion offering of seven-year senior secured notes (/B/) with a yield in the 10% area on Tuesday, according to an informed source.

The notes are expected to price with 2 points to 3 points of original issue discount.

The books close at 1 p.m. ET on Wednesday, and the notes are expected to price thereafter.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A with registration rights offer. Barclays Capital Inc. is the joint bookrunner.

J.P. Morgan Securities Inc. and Bank of America Merrill Lynch are joint lead managers. Raymond James & Associates, SunTrust Robinson Humphrey Inc. and TD Securities are co-managers.

The notes come with three years of call protection.

Proceeds will be used to repay bank debt.

The prospective issuer is a Tulsa, Okla.-based manufacturer of pipes, valves and fittings.

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