By Paul Deckelman
New York, July 22 - Accuride Corp. priced a slightly upsized $310 million offering of eight-year first-priority senior secured notes (B2/B) Thursday to yield 10%, junk bond syndicate sources said. The notes, carrying a coupon of 9½%, priced at 97.288, in line with revised pre-deal price talk envisioning a yield of 10%. However, that price talk had come in from the 10¼% to 10½% level that had circulated in the market late Wednesday. The issue price was consistent with expectations of a discount from par of between 2 and 3 points.
The issue was slightly upsized from the $300 million figure that the company had first announced on Monday.
High-yield traders noted that the timing of the deal was moved up by several days, presumably to take advantage of generally strong primary market conditions. After the Evansville, Ind.-based maker of steel and aluminum wheels and other truck and commercial vehicle components announced its plans for the offering, sources heard that the company had begun a roadshow to market the deal to investors and said at that time that the deal would likely price sometime during the upcoming July 26 week.
Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners for the Rule 144A and Regulation S deal, which is being sold with registration rights.
Through Aug. 1, 2014, the notes can be redeemed at any time at par plus a premium. After that, they are callable at par plus one-half the coupon. The notes also feature a special call entitling the issuer to redeem 10% of the issue per year at a price of 103 for the first three years after issue, until Aug. 1, 2013.
The notes are secured by a first lien on real property and on tangible and intangible assets and a second lien, behind the company's asset-backed loan, on accounts receivable and inventories.
Accuride plans to use the proceeds from the new deal, plus approximately $10 million under a new asset-based revolving credit facility and cash on hand, to refinance the company's existing senior credit facility.
| Issuer: | Accuride Corp.
|
| Face Amount: | $310 million (upsized from $300 million)
|
| Maturity: | Aug. 1, 2018
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| Securities: | First-priority senior secured notes
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| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities, Inc.
|
| Coupon: | 9½%
|
| Price: | 97.288
|
| Yield: | 10%
|
| Spread: | 745 basis points versus Treasuries
|
| Call features: | Callable at par plus a premium until Aug. 1, 2014 then at 104.75; callable Aug. 1, 2015 at 102.375 and at par on or after Aug. 1, 2016; up to 10% of the aggregate principal amount at 103 during any 12-month period before Aug. 1, 2013
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| Equity clawback: | For up to 35% of the issue at 109.5, prior to Aug. 1, 2013
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| Trade date: | July 22
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| Settlement date: | July 29
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| Ratings: | Moody's: B2
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| Standard & Poor's: B
|
| Distribution | 144A/Regulation S with registration rights
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| Price talk: | Original: 10¼% to 10½%, including 2-3 points OID
|
| Revised: | 10%, including 2-3 points OID
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