Valmont plans to tap 5% notes due 2044, 5.25% notes due 2054

By Devika Patel

Knoxville, Tenn., June 8 – Valmont Industries Inc. intends to sell senior notes (Baa2/BBB+) in two tranches, consisting of add-ons to its 5% senior notes due Oct. 1, 2044 and its 5.25% senior notes due Oct. 1, 2054, according to a 424B2 filing with the Securities and Exchange Commission.

The company sold $250 million of the 5% notes and $250 million of the 5.25% notes in a sale that priced on Sept. 8, 2014 and settled on Sept. 18, 2014.

The 5% notes were priced at 99.536 to yield 5.03%, with a spread of 180 basis points over Treasuries.

The 5.25% notes were priced at 98.68 to yield 5.33%, with a spread of Treasuries plus 210 bps.

The 5% notes have a make-whole call until April 1, 2044 at Treasuries plus 30 bps, and then a par call. The 5.25% notes have a make-whole call at Treasuries plus 35 bps until April 1, 2054, and then a par call.

J.P. Morgan Securities LLC, BofA Merrill Lynch and Goldman Sachs & Co. are the bookrunners.

Proceeds will be used for general corporate purposes, including to redeem some or all of the company’s 6.625% senior notes due 2020 at the make-whole redemption price.

The Omaha-based company designs and manufactures fabricated metal products.

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