TriMas to redeem $100.3 million of 9 7/8% notes with IPO proceeds

By Angela McDaniels

Seattle, May 21 - TriMas Corp. plans to redeem $100.3 million of its 9 7/8% senior subordinated notes due 2012 with a portion of the proceeds from its upcoming initial public offering, according to a 424B4 filing with the Securities and Exchange Commission.

The notes are callable on June 15 at 104.938.

The company said it will sell 121 million shares at $11.00 each for net proceeds of $109.1 million. The shares will settle on May 23, and the underwriters have been granted an $18.15 million greenshoe.

Of the net proceeds, $105.3 million will be used to redeem the 9 7/8% notes and $3.8 million will be used, along with $6.2 million of cash on hand and revolving credit borrowings, to make a $10 million payment to terminate the $4 million annual fee paid to Heartland Industrial Partners, LP under a consulting agreement.

Heartland currently owns 72.7% of TriMas' shares. Following the IPO, it will control 47.5% of the company's shares, according to the filing.

TriMas is a Bloomfield Hills, Mich., manufacturer of engineered products.

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