By Abigail W. Adams
Portland, Me., March 26 – Algoma Steel Inc. priced $350 million of five-year senior secured second-lien notes (B3/B/BB-) on Tuesday at par to yield 9 1/8%, according to a market source.
Pricing came tighter than talk for a yield of 9¼% to 9½%, according to a market source.
Early guidance was for a yield in the 9½% area.
The notes are non-callable for two years.
Jefferies LLC is lead left bookrunner for the Rule 144A and Regulation S offering. BMO Capital Markets Corp. and Stifel, Nicolaus & Co. Inc. are also bookrunners.
Proceeds will be used for general corporate purposes.
Algoma Steel is a Sault Ste. Marie, Ont.-based steel producer.
| Issuer: | Algoma Steel Inc.
|
| Amount: | $350 million
|
| Issue: | Senior secured second-lien notes
|
| Maturity: | April 15, 2029
|
| Left bookrunner: | Jefferies LLC
|
| Joint bookrunners: | BMO Capital Markets Corp. and Stifel, Nicolaus & Co. Inc.
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| First call: | April 15, 2026
|
| Trade date: | March 26
|
| Settlement date: | April 5
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Investor call
|
|
|
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