By Lisa Kerner
Charlotte, N.C., Aug. 15 - Worthington Industries, Inc. provided details on its previously announced issue of $150 million of 12-year senior notes due 2024.
The 4.6% fixed-rate notes were issued through a private placement with Prudential Capital Group.
The Columbus, Ohio-based metals manufacturer will use the proceeds to repay debt.
The notes are senior obligations of the company and rank equal in right of payment with Worthington's existing and future debt.
Interest on the notes is payable quarterly on Feb. 10, May 10, Aug. 10 and Nov. 10 beginning Nov. 10, according to an 8-K filing with the Securities and Exchange Commission.
Worthington may prepay the notes at 100% of the principal amount to be prepaid plus a make-whole amount calculated using Treasuries plus 50 basis points.
Purchasers included Prudential Insurance Co. of America, Pruco Life Insurance Co. of New Jersey, Pruco Life Insurance Co., Prudential Arizona Reinsurance Universal Co., Prudential Annuities Life Assurance Corp., Prudential Life Insurance Co., Ltd. and Gibraltar Life Insurance Co., Ltd.
Under the note agreement, Worthington's interest coverage ratio must not be less than 3 to 1.
A subset of the note purchasers have also purchased $50 million total principal amount of notes from Worthington's 50% owned joint venture, Worthington Armstrong Venture. These notes mature Dec. 31, 2021.
| Issuer: | Worthington Industries, Inc.
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| Issue: | Senior notes
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| Amount: | $150 million
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| Maturity: | Aug. 10, 2024
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| Coupon: | 4.6%
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| Call option: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | Aug. 10
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| Distribution: | Private placement
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| Purchasers: | Prudential Insurance Co. of America, Pruco Life Insurance Co. of New Jersey, Pruco Life Insurance Co., Prudential Arizona Reinsurance Universal Co., Prudential Annuities Life Assurance Corp., Prudential Life Insurance Co., Ltd. and Gibraltar Life Insurance Co., Ltd.
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