Esco talks $275 million seven-year notes: fixed-rate 8½%-8¾%, floaters Libor plus 375-400 bps

By Paul A. Harris

St. Louis, Dec. 11 - Esco Corp. put out price talk on its $275 million two-part offering of seven-year senior notes (B2/B) on Monday, according to an informed source.

The Portland, Ore., metal parts manufacturer talked a fixed-rate tranche, which comes with four years of call protection, at 8½% to 8¾%.

Meanwhile, the company talked a floating-rate tranche, which comes with two years of call protection, at Libor plus 375 to 400 basis points.

Tranche sizes remain to be determined.

Books will close at 10 a.m. ET on Tuesday, with the notes pricing thereafter.

Goldman Sachs & Co. and Morgan Stanley are joint bookrunners for the notes, which are being marketed via Rule 144A.

Proceeds will be used to fund the leveraged buyout of the company by its employee stock ownership plan and to pay a special dividend to common shareholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.