By Paul A. Harris
St. Louis, Mo., May 17 - Earle M. Jorgenson Co., Inc. priced $250 million of senior secured notes due June 1, 2012 (B2/B-) at par Friday to yield 9¾% according to a syndicate source.
Price talk was 9¾% area.
Credit Suisse First Boston and Deutsche Bank Securities were joint bookrunners. JP Morgan was co-manager.
Proceeds from the Rule 144A notes will be used to repay the term loan and the 9½% senior notes due 2005, and to pay a $25 million dividend.
The metal products distributor is based in Brea, Calif.
Issuer: Earle M. Jorgensen Co., Inc.
Amount: $250 million
Maturity: June 1, 2012
Type: Senior secured notes
Bookrunners: Credit Suisse First Boston, Deutsche Bank Securities
Coupon: 9¾%
Price: Par
Yield: 9¾%
Price talk: 9¾% area
Spread: 454 basis points vs. the 4 7/8% Treasury Feb., 2012
Call features: Callable on June 1, 2007 at 104.875, 103.25, 101.625, par on June 1, 2010 and thereafter
Equity clawback: Until June 1, 2005 for 35% at 109.75
Settlement date: May 22, 2002
Ratings: Moody's: B2
| Standard & Poor's: B-
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| Rule 144A CUSIP: | 480829AD2
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