By Paul A. Harris
Portland, Ore., Sept. 9 – Big River Steel LLC, in conjunction with BRS Finance Corp., priced an upsized $900 million issue 6 5/8% senior secured notes due Jan. 31 2029 (Caa1/B) at par to yield 6.627% on Wednesday, according to market sources.
The issue size increased from $875 million.
The yield printed tight to yield talk in the 6¾% area. Early guidance was in the high 6% area.
Goldman Sachs & Co. LLC was the left bookrunner.
The Osceola, Ark.-based steel producer plans to use the proceeds to pay off its term loan, to redeem its senior secured notes and for general corporate and working capital purposes.
| Issuer: | Big River Steel LLC and BRS Finance Corp.
|
| Amount: | $900 million, upsized from $875 million
|
| Maturity: | Jan. 31, 2029
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunner: | BofA Securities Inc.
|
| Senior co-manager: | BMO Capital Markets Corp.
|
| Co-managers: | Crews & Associates, Truist Securities Inc.
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6.627%
|
| Spread: | 604 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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