Chaparral talks $300 million: eight-year fixed 9%-9¼%, seven-year floater Libor plus 500-525 bps

By Paul A. Harris

St. Louis, June 28 - Chaparral Steel Co. issued price talk Tuesday on its $300 million two-part offering of bonds (B1/B), according to an informed source.

Talk is 9% to 9¼% on its eight-year senior notes and Libor plus 500 to 525 basis points on the seven-year senior floating-rate notes. Tranche sizes remain to be determined.

Pricing is expected on Wednesday.

Banc of America Securities LLC and UBS Investment Bank are joint bookrunners for the Rule 144A offering.

Proceeds along with a concurrent $50 million drawdown of the company's new revolving credit facility will fund a cash distribution to Texas Industries Inc. to effect the spinoff of Chaparral from Texas Industries.

The prospective issuer is a producer of steel products and steel bar products, with headquarters in Midlothian, Texas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.