New Issue: Oregon Steel Mills prices $305 million seven-year first mortgage notes to yield 10¼%

By Paul A. Harris

St. Louis, Mo., July 10 - Oregon Steel Mills, Inc. slightly upsized to $305 million from $300 million its offering of first mortgage notes due July 15, 2009 (B1/BB-) and priced them at 98.772 on Tuesday to yield 10¼%, according to a syndicate source.

Goldman Sachs & Co. was the bookrunner.

Proceeds from the Rule 144A notes will be used to repay $228 million of 11% first mortgage notes due in June 2003 and borrowings under its credit facility.

The issuer is a Portland, Ore.-based specialty steel producer.

Issuer:	Oregon Steel Mills, Inc.
Amount:	$305 million (increased from $300 million)
Maturity:	July 15, 2009
Type:	First mortgage notes
Bookrunner:	Goldman Sachs
Coupon:	10%
Price:	98.772
Yield:	10¼%
Spread:	550 basis points
Call features:	Callable on July 15, 2006 at 105, 102.5, par on July 15, 2008 and thereafter
Equity clawback:	Until July 15, 2005 for 35% at 110
Settlement date:	July 15
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Rule 144A CUSIP:	686079AB0
Price talk:	10¼%-10½%

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