Vulcan to start roadshow Wednesday for $1 billion senior bullet notes

By Paul A. Harris

Portland, Ore., May 31 - Vulcan Materials Co. plans to begin a roadshow on Wednesday in New York for a $1 billion two-part offering of senior notes due December 2016 and June 2021 (expected ratings Ba1/BB), according to an informed source.

An investor call is also set for Wednesday.

The roadshow moves to Boston on Thursday.

Bank of America Merrill Lynch, Goldman, Sachs & Co. and SunTrust Robinson Humphrey are the joint bookrunners for the public offering.

Morgan Keegan and US Bancorp are the senior co-managers. BB&T Capital Markets, BBVA, Mizuho Securities and Williams Capital Group, LP are the co-managers.

Both tranches will be non-callable apart from a make-whole provision at Treasuries plus 50 basis points. Both tranches will also feature 101% poison puts.

Proceeds will be used to repay a portion of the company's revolving credit facility, as well as to refinance and terminate its term loan, to fund a tender offer for a portion of the company's existing 5.6% senior notes due 2012 and its 6.3% senior notes due 2013, and for general corporate purposes.

The issuer is a Birmingham, Ala.-based producer of concrete, asphalt and other construction aggregates.

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