Published on 12/6/2010 in the Prospect News High Yield Daily.
New Issue: AK Steel prices $150 million add-on to 7 5/8% notes due 2020 at 99.375 to yield 7.718%
By Paul A. Harris
St. Louis, Dec. 6 - AK Steel Corp. priced a $150 million add-on to its 7 5/8% senior notes due May 15, 2020 (expected ratings Ba3/BB/) at 99.375 to yield 7.718% on Monday, according to an informed source.
The reoffer price came at the rich end of the 99.25 area price talk.
Bank of America Merrill Lynch, Credit Suisse Securities, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., UBS Investment Bank and Wells Fargo Securities were the joint bookrunners.
Proceeds will be used for general corporate purposes.
The company is a West Chester, Ohio-based producer of flat-rolled carbon, stainless and electrical steels and tubular products.
| Issuer: | AK Steel Corp.
|
| Face amount: | $150 million
|
| Proceeds: | $149.06 million (approximate)
|
| Maturity: | May 15, 2020
|
| Security description: | Add-on to 7 5/8% senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., UBS Investment Bank, Wells Fargo Securities
|
| Co-managers: | Fifth Third Securities Inc., PNC Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., US Bancorp
|
| Coupon: | 7 5/8%
|
| Price: | 99.375
|
| Yield: | 7.718%
|
| Spread: | 486 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 15, 2015, then callable at 103.813, 102.542, 101.271, par on and after May 15, 2018
|
| Equity clawback: | 35% at 107.625 until May 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 9 with accrued interest
|
| Expected ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 99.25 area
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced at par on April 27, 2010
|
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