By Paul A. Harris
St. Louis, April 7 - Valmont Industries, Inc. priced an upsized $300 million issue of 10-year senior unsecured notes (Ba1/BBB-/) at 99.998 to yield 6 5/8% on Wednesday, according to an informed source.
The yield printed at the tight end of the 6¾% area price talk.
Credit Suisse and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market deal, which was upsized from $250 million.
Proceeds will be used to fund the proposed acquisition of Delta plc. If the acquisition is not completed, proceeds will be used for general corporate purposes, including debt repayment.
The issuer is an Omaha-based producer of fabricated metal products, pole and tower structures and mechanized irrigation systems.
| Issuer: | Valmont Industries, Inc.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | April 20, 2020
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | Credit Suisse, Bank of America Merrill Lynch
|
| Co-managers: | U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities Inc.
|
| Coupon: | 6 5/8%
|
| Price: | 99.998
|
| Yield: | 6 5/8%
|
| Spread: | 273.5 bps
|
| Call protection: | Make-whole at Treasuries plus 45 bps
|
| Trade date: | April 7
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 6¾% area
|
| Marketing: | Quick-to-market
|
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