Commercial Metals talks $300 million 10-year notes to yield 5¼% to 5½%, pricing Thursday

By Paul A. Harris

Portland, Ore., June 29 – Commercial Metals Co. talked its $300 million offering of 10-year senior notes (Ba2/BB+) to yield 5¼% to 5½%, according to a syndicate source.

Books close at 3 p.m. ET Thursday and the public offer is set to price and allocate subsequently.

Citigroup Global Markets Inc. is the left bookrunner. Wells Fargo Securities LLC, BofA Merrill Lynch, BBVA and PNC Capital Markets are the joint bookrunners. BB&T, Santander, BMO Securities, Rabo Securities and US Bancorp are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first five years, then become callable at par plus 50% of the coupon. They also feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Irving, Texas-based manufacturer, recycler and marketer of steel and metal products plans to use the proceeds to refinance its 7 3/8% senior notes due 2018.

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