By Paul A. Harris and Sara Rosenberg
St. Louis, Jan. 26 - Accuride Corp. priced an upsized $275 million issue of 10-year senior subordinated notes (Caa1/B-) at par to yield 8½%, according to a syndicate source.
Price talk was 8 3/8% to 8 5/8%.
Lehman Brothers, Citigroup and UBS Investment Bank were joint bookrunners for the Rule 144A/Regulation S issue.
Accuride downsized its term loan B by $65 million to $550 million from $615 million. Of that $65 million, $50 million was added to the bond deal, which was upsized from $225 million. The remaining $15 million that is coming out of the term loan B will be covered by cash on hand.
Proceeds will be used to refinance debt in conjunction with the acquisition of Transportation Technologies Industries.
Accuride is an Evansville, Ind.-based manufacturer and supplier of wheels for heavy and medium trucks and trailers.
| Issuer: | Accuride Corp.
|
| Amount: | $275 million
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Lehman Brothers, Citigroup, UBS Investment Bank
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 432 basis points
|
| Call features: | Make-whole call at Treasuries plus 75 basis points until Feb. 1, 2010, then callable at 104.250, 102.833, 101.417, par on and after Feb. 1, 2013
|
| Equity clawback: | Until Feb. 1, 2008 for 40% at 108.50
|
| Trade date: | Jan. 26
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 8 3/8%-8 5/8%
|
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