By Paul A. Harris
St. Louis, Dec. 12 - Esco Corp. priced an upsized $300 million two-part issue of seven-year senior notes (B2/B) on Tuesday, according to an informed source.
The Portland, Ore., metal parts manufacturer priced a $200 million tranche of fixed-rate notes at par to yield 8 5/8%, in the middle of the 8½% to 8¾% price talk.
In addition Esco priced a $100 million tranche of floating-rate notes at par to yield three-month Libor plus 387.5 basis points, also in the middle of price talk of Libor plus 375 to 400 bps.
Goldman Sachs & Co. and Morgan Stanley were joint bookrunners for the notes, which are being marketed via Rule 144A and Regulation S.
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.
The issue was upsized from $275 million.
| Issuer: | Esco Corp.
|
| Amount: | $300 million (upsized from $275 million)
|
| Maturity: | Dec. 15, 2013
|
| Security description: | Fixed- and floating-rate notes
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 15
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | $200 million
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 415 bps
|
| Call features: | Callable on Dec. 15, 2010 at 104.313, 102.156, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2009 for 35% at 108.625
|
| Price talk: | 8½% to 8¾%
|
|
|
| Floating-rate notes
|
| Amount: | $100 million
|
| Coupon: | Three-month Libor plus 387.5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 387.5 bps
|
| Call features: | Callable on Dec. 15, 2008 at 102.0, 101.0, par on and after Dec. 15, 2010
|
| Price talk: | Libor plus 375 to 400 bps
|
© 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.
