By Paul A. Harris
Portland, Ore., July 12 – Grinding Media Inc. and Moly-Cop AltaSteel Ltd. priced a $100 million add-on to their 7 3/8% senior secured notes due Dec. 15, 2023 (B2/B) at 107.75 on Wednesday, according to an informed source.
The price came at the rich end of the 107.25 to 107.75 price talk.
The pricing renders a 5.356% yield to worst.
Morgan Stanley & Co. and Jefferies LLC were 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 issuer is a producer of forged steel grinding media.
| Issuers: | Grinding Media Inc. and Moly-Cop AltaSteel Ltd.
|
| Face amount: | $100 million
|
| Proceeds: | $107.75 million
|
| Maturity: | Dec. 15, 2023
|
| Security description: | Add-on to 7 3/8% senior secured notes due Dec. 15, 2023
|
| Bookrunners: | Morgan Stanley & Co. and Jefferies LLC
|
| Coupon: | 7 3/8%
|
| Price: | 107.75
|
| Yield to worst: | 5.356%
|
| Spread: | 393 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2019, then callable at 103.688
|
| Special call: | A special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period
|
| Trade date: | July 12
|
| Settlement date: | July 17 with accrued interest
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 107.25 to 107.75
|
| Marketing: | Quick to market
|
| Original issue: | Original $775 million priced at par on Dec. 2, 2016
|
| Fungibility: | Rule 144A add-on notes will become immediately fungible with the original notes; Regulation S add-on notes will become fungible with the original notes following a 40-day cooling period
|
| Total issue size: | $885 million
|
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