By Paul A. Harris
St. Louis, Oct. 10 - The Shaw Group Inc. said in Tuesday news release that it has priced ¥128.98 billion of limited recourse bonds due March 15, 2013 in a two-tranche private placement.
The Baton Rouge, La., company, issuing via its wholly owned subsdiary Nuclear Energy Holdings, LLC (NEH) priced ¥78.0 billion of floating-rate bonds, which will pay a coupon of six-month Yen Libor plus 70 basis points.
In addition NEH priced ¥50.98 billion of fixed-rate notes that will pay a coupon of 2.20%.
Proceeds will be used to help fund 20% of the $5.4 billion acquisition of Westinghouse Electric Co. from British Nuclear Fuels Ltd.
Last week, citing the acquisition, Standard & Poor's placed Shaw's BB corporate credit rating on CreditWatch with negative implications.
Joining Shaw in acquiring Westinghouse is Toshiba Corp. (BBB/Watch negative from S&P).
At closing Toshiba will own 77% of each of the Westinghouse Acquisition Cos., NEH will own 20% and Ishikawajima-Harima Heavy Industries Co., Ltd. of Japan, will own 3%.
The transaction is conditioned in part upon the successful placement of the bonds by Shaw.
No syndicate names were disclosed in the Wednesday news release, and the company did not return a telephone call from Prospect News.
Shaw Group is a provider of engineering, procurement, construction, technology, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets.
| Issuer: | Nuclear Energy Holdings, LLC (wholly owned subsidiary of The Shaw Group Inc.)
|
| Amount: | ¥128.98 billion
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| Maturity: | March 15, 2013
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| Settlement date: | Oct. 13
|
|
|
| Floating-rate notes
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| Amount: | ¥78.0 billion
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| Coupon: | Six-month Yen Libor plus 70 basis points
|
|
|
| Fixed-rate notes
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| Amount: | ¥50.98 billion
|
| Coupon: | 2.20%
|
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