New York, Nov. 14 - AK Steel Holding Corp. priced an upsized $150 million of seven-year exchangeable senior notes after the market close Wednesday with a 5% coupon and a 35% initial conversion premium.
The terms were richer than talk for a yield of 5.25% to 5.75% and an initial conversion premium of 27.5%-32.5%.
The size was increased from a planned $125 million.
AK Steel also priced a downsized offering of 22 million shares at $4.00 each, reduced from 25 million shares, and $350 million of senior secured straight notes due 2018 with an 8.75% coupon at par.
The off-the-shelf exchangeable notes have a $22.5 million greenshoe, increased from $18.75 million.
They were sold via joint bookrunners Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and Bank of America Merrill Lynch.
The notes are non-callable for life. They have change-of-control and dividend protection. They also have net share settlement.
Proceeds will be used to repay borrowings under the company's credit facility and for general corporate purposes.
West Chester, Ohio-based AK Steel makes carbon, stainless and electrical steels.
| Issuer: | AK Steel Holding Corp.
|
| Issue: | Exchangeable senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Nov. 15, 2019
|
| Coupon: | 5%
|
| Exchange premium: | 35%
|
| Exchange price: | $5.40
|
| Exchange ratio: | 185.1852
|
| Net share settlement: | Yes
|
| Call: | Non-callable
|
| Put: | No
|
| Pricing date: | Nov. 14, after close
|
| Settlement: | Nov. 20
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and Bank of America Merrill Lynch
|
| Stock symbol: | NYSE: AKS
|
| Stock price: | $4.02 at close, Nov. 14
|
| Stock reference price: | $4.00
|
| Market capitalization: | $445 million
|
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