By Paul A. Harris
St. Louis, June 22 - Blaze Recycling & Metals, LLC and Blaze Finance Corp. priced an upsized and restructured $130 million two-part offering of high-yield notes on Friday, according to an informed source.
The Georgia-based metal recycler priced an upsized $115 million issue of five-year senior secured notes (B) at par to yield 10 7/8%, in the middle of the 10¾% to 11% price talk. The tranche was upsized from $110 million.
Also, in a restructuring of the deal, Blaze Recycling priced an added $15 million tranche of non-rated senior subordinated notes due Jan. 15, 2013 at par to yield 16½%. No price talk had been set for the subordinated notes.
The subordinated notes will pay a cash coupon of 16½% or a payment-in-kind coupon of 18%.
Jefferies & Co. was the bookrunner for the Rule 144A for life and Regulation S deal, the overall size of which was upsized from $110 million.
Proceeds will be used to fund the acquisition of the company by affiliates of Altazano Management LLC, CarVal Investors LLC and Jefferies & Co., Inc.
Proceeds will also be used to fund capital expenditures and for general corporate purposes.
| Issuers: | Blaze Recycling & Metals, LLC and Blaze Finance Corp.
|
| Amount: | $130 million (increased from $110 million
|
| Bookrunner: | Jefferies & Co.
|
| Trade date: | June 22
|
| Settlement date: | July 10
|
| Distribution: | Rule 144A for life/Regulation S
|
|
|
| Senior secured notes
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| Amount: | $115 million (upsized from $110 million)
|
| Maturity: | July 15, 2012
|
| Coupon: | 10 7/8%
|
| Price: | Par
|
| Yield: | 10 7/8%
|
| Spread: | 591 bps
|
| Call features: | Callable on July 15, 2010 at 105.438, par on and after July 15, 2011
|
| Equity clawback: | Until July 15, 2010 for 35% at 110.875
|
| Change-of-control put: | 101
|
| Rating: | Standard & Poor's: B
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| Price talk: | 10¾% to 11%
|
|
|
| Senior subordinated notes (added tranche)
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| Amount: | $15 million
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| Maturity: | Jan. 15, 2013
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| Cash coupon: | 16½%
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| PIK coupon: | 18%
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| Price: | Par
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| Yield: | 16½%
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| Call features: | Callable on July 15, 2010 at 108.25, par on and after July 15, 2011
|
| Equity clawback: | Until July 15, 2010 for 35% at 116.50
|
| Ratings: | Non-rated
|
| Price talk: | None
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