New Issue: R.J. Tower $250.8 million proceeds 10-year notes yield 12½%

By Paul A. Harris

St. Louis, June 6 - R.J. Tower Corp. priced $258 million principal amount of 12% senior notes due June 1, 2013 (B1/B) at a discounted price of 97.205 Friday to yield 12 ½%, according to a syndicate source. Proceeds were $250.8 million.

Price talk was for a yield in the 11½% area.

JP Morgan and Banc of America Securities were joint bookrunners for the Rule 144A deal.

R.J. Tower, a unit of Grand Rapids, Mich. auto parts supplier Tower Automotive, Inc., will use proceeds to repay its senior credit facility and for general corporate purposes.

Issuer:	R.J. Tower Corp.
Amount:	$258 million (face)
Maturity:	June 1, 2013
Security description:	Senior notes
Bookrunners:	JP Morgan, Banc of America Securities
Coupon:	12%
Price:	97.205
Yield:	12½%
Spread:	915 basis points
Call features:	Callable on June 1, 2008 at 106.0, then at 104.0, 102.0, declining to par on June 1, 2011 and thereafter
Equity clawback:	Until June 1, 2006 for 35% at 112.0
Settlement date:	June 13, 2003
Ratings:	Moody's: B1
	Standard & Poor's: B
Rule 144A Cusip:	74962JAB5
Price talk:	11½% area

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.