WireCo talks $275 million seven-year senior notes to yield 10% area

By Paul A. Harris

St. Louis, May 12 - WireCo Worldgroup, Inc. talked its $275 million offering of seven-year senior notes (expected B3/confirmed B) for a yield in the 10% area, an informed source said on Wednesday.

The prospective issuer also made changes to the bond's credit facility debt incurrence test covenant.

The order books are scheduled to close at 4 p.m. ET Thursday.

Goldman Sachs & Co. and J.P. Morgan Securities Inc. are the joint bookrunners for the Rule 144A and Regulation S notes.

HSBC Securities and Oppenheimer & Co. are the co-managers.

The notes come with three years of call protection.

Proceeds will be used to redeem the company's 11% senior notes due 2015 and for general corporate purposes.

WireCo is a Kansas City, Mo.-based manufacturer of high-quality wire rope, synthetic rope, electromechanical cable and highly engineered cable structure.

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