Published on 6/19/2013 in the Prospect News High Yield Daily.
New Issue: AK Steel prices $30 million tap of 8¾% notes due 2018 at 106.5 to yield 7.017%
By Paul A. Harris
Portland, Ore., June 19 - AK Steel Corp. priced a $30 million add-on to its 8¾% senior secured notes due Dec. 1, 2018 (B1/BB-/) at 106.5 to yield 7.017% on Wednesday, according to an informed source.
There was no official price talk.
BofA Merrill Lynch ran the books for the quick-to-market add-on.
The West Chester, Ohio-based flat rolled steel producer plans to use the proceeds for general corporate purposes.
Issuer: | AK Steel Corp.
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Amount: | $30 million
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Proceeds: | $32 million
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Maturity: | Dec. 1, 2018
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Security description: | Add-on to 8¾% senior secured notes due Dec. 1, 2018
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Bookrunner: | BofA Merrill Lynch
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Coupon: | 8¾%
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Price: | 106.5
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Yield to worst: | 7.017%
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Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2015, then callable at 104.375, 102.188, par on and after Dec. 1, 2017
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Equity clawback: | 35% at 108.75 until Dec. 1, 2015
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Change-of-control put: | 101%
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Trade date: | June 19
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Settlement date: | June 24 with accrued interest
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Ratings: | Moody's: B1
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| Standard & Poor's: BB-
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | None
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Marketing: | Quick to market
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