New Issue: Edgen Murray prices downsized $540 million 8¾% notes due 2020 to yield 8 7/8%

By Paul A. Harris

Portland, Ore., Oct. 5 - Edgen Murray Corp. priced a downsized $540 million issue of 8¾% eight-year senior secured notes (Caa1/B+/) at 99.285 to yield 8 7/8% on Friday, according to an informed source.

The yield printed in the middle of the 8¾% to 9% yield talk. The reoffer price came in line with price talk, which specified an original issue discount of approximately ¾ point.

The deal was downsized from $575 million. In connection with the downsizing, a seller note outstanding at the Bourland & Leverich subsidiary of Edgen Group, which was to be retired using the proceeds from the bonds, will now remain in place after closing.

Jefferies & Co., Morgan Stanley & Co. LLC and Bank of America Merrill Lynch were the joint bookrunners.

The Baton Rouge, La.-based steel company plans to use the proceeds to repay debt, including its 12¼% senior secured notes.

Issuer:	Edgen Murray Corp.
Face amount:	$540 million, downsized from $575 million
Proceeds:	$536.14 million
Maturity:	Nov. 1, 2020
Securities:	Senior secured notes
Bookrunners:	Jefferies & Co., Morgan Stanley & Co. LLC, Bank of America Merrill Lynch
Co-manager:	HSBC Securities (USA) Inc.
Coupon:	8¾%
Price:	99.285
Yield:	8 7/8%
Call features:	Make-whole at Treasuries plus 50 bps until Nov. 1, 2015, then callable at 106.563, 104.375, 102.188, par on and after Nov. 1, 2018
Equity clawback:	35% at 108.75 until Nov. 1, 2015
Change-of-control put:	101%
Trade date:	Oct. 5
Settlement date:	Oct. 16
Ratings:	Moody's: Caa1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	8¾% to 9% yield including approximately ¾ point OID
Marketing:	Roadshow

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