Vulcan accepts tenders for $564.89 million of 7.5% notes due 2021

By Marisa Wong

Morgantown, W.Va., Dec. 28 – Vulcan Materials Co. said $564,889,000 of its $600 million of outstanding 7.5% notes due 2021 were tendered by 5 p.m. ET on Dec. 22, the expiration of its previously announced cash tender offer.

The company has accepted for purchase all of the tendered notes and expected payment to be made on Dec. 28.

The purchase price is $1,170.24 per $1,000 principal amount, calculated based on the 1.875% Treasury note due Dec. 15, 2020 plus 35 basis points for a reference yield of 2.003%, according to a prior press release. Pricing was set at 11 a.m. ET on Dec. 22.

The issuer will also pay accrued interest up to but excluding the settlement date.

Vulcan Materials launched the tender offer on Dec. 18.

The company will redeem on Jan. 17 the $35,111,000 principal amount of notes that remain outstanding. Holders of those notes will receive the make-whole redemption price, based on the redemption spread of 50 bps over the yield of the reference Treasury, plus accrued interest to the redemption date.

BofA Merrill Lynch (888 292-0070 or 980 388-3646) is the dealer manager. D.F. King & Co. (212 269-5550, 877 361-7972 or dfking.com/vmc) is the tender and information agent.

Vulcan Materials is a Birmingham, Ala., producer of construction aggregates.

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