By Paul A. Harris
St. Louis, Dec. 14 - VeraSun Energy Corp. priced a $210 million issue of 9 7/8% seven-year senior secured notes (B3/B-) at 99.386 on Wednesday to yield 10%, according to an informed source.
The yield came at the tight end of the 10% to 10¼% price talk.
The sale generated about $208.7 million of proceeds.
Lehman Brothers and Morgan Stanley were bookrunners for the issue of notes that was sold via Rule 144A with registration rights and via Regulation S.
Proceeds, together with the proceeds from the company's recent equity offering, will be used to repay debt relating to its Aurora and Fort Dodge facilities, to deposit $125 million into an escrow account to finance the start up and construction costs of its planned Charles City facility, and for corporate purposes.
VeraSun Energy is a Brookings, S.D.-based ethanol producer.
| Issuer: | VeraSun Energy Corp.
|
| Face amount: | $210 million
|
| Proceeds: | $208.7 million (approximate)
|
| Maturity: | Dec. 15, 2012
|
| Security description: | Senior secured notes
|
| Bookrunners: | Lehman Brothers and Morgan Stanley
|
| Coupon: | 9 7/8%
|
| Price: | 99.386
|
| Yield: | 10%
|
| Spread: | 558 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until Dec. 15, 2009, then callable at 104.938, 102.469, par on and after Dec. 15, 2011
|
| Equity clawback: | Until Dec. 15, 2008 for up to 35% at 109.875
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 10% to 10¼%
|
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