UCAR starts roadshow Tuesday for $250 million 10-year notes

By Paul A. Harris

St. Louis, Mo., Jan. 28 - UCAR International, Inc. will start roadshows Tuesday for a new offering of $250 million 10-year senior notes (B2/B-), a syndicate source informed Prospect News.

Credit Suisse First Boston and J.P. Morgan are joint bookrunners on the Rule 144A notes. Co-managers include ABN Amro, Fleet Securities, and Scotia Capital.

The notes, which will be sold through UCAR's UCAR Finance, Inc. unit, will be non-callable for five years.

The Wilmington, Del.-based carbon products company will use the proceeds to pay down bank debt, according to the company.

The deal will probably price midweek the week of Feb. 4, a syndicate source said.

In a press release Monday, the company announced it has finalized discussions with the U.S. Department of Justice to restructure the payment schedule for the remaining $60 million due on its 1998 antitrust fine.

"Currently, the company is scheduled to make payments of $18 million in the 2002 second quarter and $21 million in both the 2003 and 2004 second quarters. The revised payment schedule, which is subject to court approval, requires a $2.5 million payment in 2002, a $5 million payment in 2003, and, beginning with the 2004 second quarter, quarterly payments ranging from $3.25 million to $5.375 million through the 2007 first quarter."

UCAR also said its bank lenders approved the note issue and, on successful completion, will give the company "substantial financial covenant relief" through 2004 with full availability of its revolving credit facility.

© 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.