Vulcan accepts $185,000 more 7% notes due 2018 by tender offer close

By Toni Weeks

San Luis Obispo, Calif., April 13 – Vulcan Materials Co. said it took in another $185,000 principal amount of its 7% notes due 2018 by 11:59 p.m. ET on April 10, the expiration date for the tender offer for up to $200 million of the notes.

As previously reported, the company took in tenders for $127.3 million of its outstanding $400 million of the notes by 5 p.m. ET on March 27, the early tender time, all of which were accepted and settled on March 30.

In all, the company accepted tenders for about $127.4 million of the notes, according to a press release.

The total purchase price for the notes was $1,142.50 for each $1,000 principal amount tendered by the early deadline. The amount includes an early tender premium of $30.00 per $1,000 principal amount.

Those who tendered after the early tender date will receive $1,112.50 per $1,000 of notes. Settlement for these notes was expected to occur Monday.

The company is also paying accrued interest.

The tender offer was not conditioned on any minimum amount of notes being tendered but was conditioned on the completion of the company closing a public offering of new notes with proceeds of at least $400 million, which was satisfied. The company sold $400 million of 4½% notes due 2025 on March 16, as previously reported by Prospect News.

Vulcan also plans to use proceeds of the new notes to fund the announced redemption of its 6.4% notes due 2017, as well as the planned redemption of $125 million of 6½% notes due 2016, the planned redemption of $6 million of its 8.85% notes due 2021 and the planned $14 million prepayment of its floating-rate notes due 2022.

BofA Merrill Lynch (888 292-0070 or 980 387-2113 collect), Wells Fargo Securities (866 309-6316), SunTrust Robinson Humphrey Inc. (404 926-5047 collect) and US Bancorp (877 558-2607 or 612 336-7604 collect) were the joint dealer managers. Goldman Sachs & Co. and Regions Securities LLC were the co-dealer managers.

The tender agent and information agent was D.F. King & Co., Inc. (866 751-6309 or 212 269-5550).

The Birmingham, Ala., company produces construction aggregates, primarily crushed stone, sand and gravel.

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