By Paul A. Harris
Portland, Ore., April 6 – TMS International Corp. priced an upsized $325 million issue of eight-year senior notes (Caa1/B) at par to yield 6¼% in a Tuesday drive-by, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of the 6¼% to 6½% yield talk, and inside of initial guidance in the mid-6% area.
The deal was heard to be three-times oversubscribed in the early-to-mid part of Tuesday afternoon, a bond trader said.
Credit Suisse Securities (USA) LLC was the lead left bookrunner.
The Pittsburgh-based provider of onsite industrial steel mill services, formerly known as Tube City, plans to use the proceeds, including the incremental proceeds resulting from the $25 million upsizing of the deal, to redeem its 7¼% senior notes due 2025, pay off its revolver and for general corporate purposes.
| Issuer: | TMS International Corp.
|
| Amount: | $325 million, increased from $300 million
|
| Maturity: | April 15, 2029
|
| Securities: | Senior notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | BofA Securities Inc., Jefferies & Co.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 477 bps
|
| First call: | April 15, 2024 at 103.125
|
| Equity clawback: | 40% at 106.25 until April 15, 2024
|
| Trade date: | April 6
|
| Settlement date: | April 21
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Drive-by
|
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