Mueller issues price talk on $415 million in fixed, floating tranches, to price Thursday

By Paul A. Harris

St. Louis, April 6 - Price talk emerged Tuesday on a $415 million two-tranche offering from Mueller Group Inc., according to a market source.

A $100 million tranche of 7.5-year senior secured second priority floating-rate notes (B3/B-) is talked at Libor plus 475 basis points.

Meanwhile, price talk is 9¾% to 10% on a $315 million tranche of eight-year senior subordinated notes (Caa1/B-).

Credit Suisse First Boston is the bookrunner.

The notes are expected to price on Thursday.

Proceeds will be used to repay bank debt and make a cash distribution of $396 million to DLJ Merchant Banking Partners II LP and affiliated funds, owners of 94% of the stock of Mueller's parent company, Mueller Holdings (NA) Inc.

The issuer is a Decatur, Ill.-based producer of flow control products.

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