By Paul A. Harris
Portland, Ore., June 21 – GrafTech Global Enterprises Inc., a wholly owned subsidiary of GrafTech International Ltd., priced a $450 million issue of 9 7/8% 5.5-year senior secured notes (B1/BB) at 97.456 to yield 10½% on Wednesday, according to market sources.
The discount factored into talk that had the notes coming to yield 10½% to 10¾%; hence, the notes printed at the tight end of yield talk. Initial talk called for an all-in yield of 10¾% to 11%.
Timing was accelerated. When the deal was announced on Tuesday it was scheduled to remain in the market until Thursday.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets LLC and Goldman Sachs & Co. LLC.
Brooklyn Heights, Ohio-based GrafTech plans to use the proceeds to repay bank debt, with any remaining proceeds to be used for general corporate purposes.
The company supplies graphite electrode products essential to production of electric arc furnace steel and other ferrous and non-ferrous metals.
| Issuer: | GrafTech Global Enterprises Inc.
|
| Amount: | $450 million
|
| Issue: | Senior secured notes
|
| Maturity: | Dec. 15, 2028
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets LLC and Goldman Sachs & Co. LLC
|
| Coupon: | 9 7/8%
|
| Price: | 97.456
|
| Yield: | 10½%
|
| Spread: | 654 bps
|
| First call: | Dec. 15, 2025 at 104.938
|
| Trade date: | June 21
|
| Settlement date: | June 26
|
| Ratings: | Moody’s: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10½% to 10¾% yield including OID
|
| Marketing: | Roadshow
|
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