New Issue: California Steel $150 million 10-year notes yield 6 1/8%

By Paul A. Harris

St. Louis, March 9 - California Steel Industries Inc. sold $150 million of 10-year senior notes (Ba3/BB-) Tuesday at par to yield 6 1/8%, a market source said.

Price talk was 6 1/8% to 6 3/8%.

Banc of America Securities and Goldman Sachs & Co. ran the books on the Rule 144A issue. CIBC World Markets and Deutsche Bank Securities were co-managers.

Proceeds will be used to fund the tender for the company's 8½% senior notes due 2009.

The issuer is a Fontana, Calif., producer of flat-rolled steel.

Issuer:	California Steel Industries Inc.
Amount:	$150 million
Maturity:	March 15, 2014
Security description:	Senior notes
Bookrunners:	Banc of America Securities, Goldman Sachs & Co.
Co-managers:	CIBC World Markets, Deutsche Bank Securities
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	240 basis points
Call features:	Callable after March 15, 2009 at 103.063, 102.042, 101.021, par on March 15, 2012 and thereafter
Equity clawback:	Until March 15, 2007 for 35% at 106.125
Pricing date:	March 9
Settlement date:	March 22
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Price talk:	6 1/8%-6 3/8%

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