Aperam shops $500 million two-part bond deal, eyes Friday pricing

By Paul Deckelman

New York, March 22 - Aperam - the Luxembourg-based stainless steel producer spun off from international steel giant ArcelorMittal earlier this year - was heard by high-yield market sources on Tuesday to be shopping a proposed $500 million two-part bond deal to investors, with pricing expected by the end of the week.

The company was said to have pitched the deal to New York-area investors on Tuesday, including a midday conference call, with roadshow sessions slated for Boston on Wednesday and Los Angeles on Thursday to be followed by an anticipated Friday morning pricing.

The deal would consist of two equally sized tranches of bonds, provisionally labeled tranche A and tranche B. The first would consist of $250 million of senior notes due 2016, which would have 2½ years of call protection, while the second, also sized at $250 million, would consist of senior notes due 2018 having four years of non-callability.

The bonds are expected to carry a Ba1/BB+ rating.

Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. and ING Financial Markets LLC would be the bookrunners on the deal.

The bonds are being sold under Regulation S and Rule 144A for the life of the issue.

The company, which manufacturers stainless steel and other specialty steels in Brazil, France and Belgium, plans to use the deal proceeds, along with cash on hand, to repay outstanding amounts under its bridge facility with former parent AreclorMittal.

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