Chicago, June 27 – AMG Vanadium LLC priced a $307.2 million issue of 5% U.S. tax-exempt bonds (B3/B) due July 1, 2049 through the Ohio Air Quality Development Authority, according to a company notice.
The bonds are guaranteed by AMG Advanced Metallurgical Group NV.
Proceeds were $325 million for an issue that was oversubscribed with $940 million in orders from 46 institutional investors.
Initially, the yield was 4.35%, but as a response to investor demand the yield was reduced to 4.28%, representing a spread of 197 basis points to MMD.
The bonds are callable at par starting on July 1, 2029.
Proceeds will be used to fund a new greenfield resid spent catalyst recycling facility near Zanesville, Ohio.
Citigroup Global Markets Inc. and Morgan Stanley served as underwriters.
AMG produces specialty metals and mineral products and provides vacuum furnace systems and services to various markets. The company has corporate offices in Amsterdam and Wayne, Pa.
| Issuers: | AMG Vanadium LLC and Ohio Air Quality Development Authority
|
| Guarantor: | AMG Advanced Metallurgical Group NV
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| Amount: | $307.2 million
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| Maturity: | July 1, 2049
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| Securities: | Tax-exempt bonds
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| Underwriters: | Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
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| Coupon: | 5%
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| Yield: | 4.28%
|
| Spread: | 197 bps to MMD
|
| First call: | July 1, 2029 at par
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| Trade date: | June 27
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| Settlement date: | July 11
|
| Ratings: | Moody’s: B3
|
| S&P: B
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| Yield talk: | 4.35%
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