By Paul A. Harris
St. Louis, Jan. 18 - Tube City IMS Corp. priced a downsized $225 million issue of eight-year senior subordinated notes (B3/B-) at par to yield 9¾% on Thursday, according to an informed source.
The yield came 25 basis points tighter than the 10% to 10¼% price talk.
The company shifted $25 million to its term loan, increasing the size of the loan to $165 million from $140 million.
Credits Suisse was the bookrunner for the Rule 144A and Regulation S issue.
Proceeds will be used to help fund the acquisition of Tube City by Onex Partners.
Tube City is a Glassport, Pa., provider of outsourced services to steel mills.
| Issuer: | Tube City IMS Corp.
|
| Amount: | $225 million (decreased from $250 million)
|
| Maturity: | Feb. 1, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Credit Suisse
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 498 bps
|
| Call features: | Callable on Feb. 1, 2011 at 104.875, 102.438, par on and after Feb. 1, 2013
|
| Equity clawback: | Until Feb. 1, 2010 for 35% at 109.75
|
| Trade date: | Jan. 18
|
| Settlement date: | Jan. 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10% to 10¼%
|
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