By Paul A. Harris
St. Louis, Feb. 14 - Elyria Foundry Co. LLC and EH Acquisition, Inc. priced a restructured $100 million issue of 13% five-year senior secured notes (B3/B) with warrants for 15% of the company's equity on Thursday, according to an informed source.
The issue is comprised of 100,000 notes and warrants units.
The notes priced at 96.46 to yield 14%.
The Rule 144A/Regulation S for life issue was originally launched as a notes-only offering.
Jefferies & Co. ran the books.
Proceeds will be used to finance the acquisition of Hodge Foundry, Inc., a Greenville, Pa., company that was founded in 1876 and has established itself as a leading producer of large, highly engineered gray and ductile iron castings, primarily for power generation and mining and minerals processing.
The issuing entities will be merged with and into Hodge.
Elyria Foundry is an Elyria, Ohio-based producer of complex, highly engineered gray and ductile iron castings of up to 50,000 pounds for critical applications in vital, domestic-sourced industries. The company also provides value-added services such as concurrent engineering, stocking, heat treating and painting.
| Issuers: | Elyria Foundry Co. LLC and EH Acquisition, Inc.
|
| Face amount: | $100 million
|
| Securities: | 100,000 units comprised of $100 million senior secured notes and 100,000 warrants for common shares representing 15% of the company
|
| Bookrunner: | Jefferies & Co.
|
| Notes maturity: | March 1, 2013
|
| Coupon: | 13%
|
| Price: | 96.46
|
| Yield: | 14%
|
| Call features: | Make-whole at Treasuries plus 50 bps until March 1, 2011, then at 106.50, par on or after March 1, 2012
|
| Equity clawback: | Until March 1, 2011 for 35% at 113.00
|
| Change of control: | 101.0
|
| Trade date: | Feb. 14
|
| Settlement date: | Feb. 20
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S for life
|
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