Grinding Media (Moly-Cop) to price $100 million tap of 7 3/8% secured notes on Wednesday

By Paul A. Harris

Portland, Ore., July 12 – Grinding Media Inc. and Moly-Cop AltaSteel Ltd. plan to price a $100 million add-on to their 7 3/8% senior secured notes due Dec. 15, 2023 (current ratings B2/B) on Wednesday, trailing a late-morning conference call with investors, according to an informed source.

Morgan Stanley & Co. and Jefferies LLC are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes feature a make-whole call at Treasuries plus 50 basis points until Dec. 15, 2019, then become callable at 103.688. A special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period. The notes also feature a 40% equity clawback at 107.375 until Dec. 15, 2019.

Proceeds will be used for general corporate purposes which may include potential near-term acquisitions, capital expenditures and working capital.

The prospective issuer is a producer of forged steel grinding media.

The original $775 million issue priced at par on Dec. 2, 2016.

The Rule 144A add-on notes will become immediately fungible with the original notes. The Regulation S add-on notes will become fungible with the original notes following a 40-day cooling period.

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