Essar Steel Minnesota begins roadshow for $450 million seven-year secured notes offering

By Paul Deckelman

New York - April 29 - Essar Steel Minnesota LLC was heard by high-yield syndicate sources to be beginning a roadshow on Tuesday for its planned offering of $450 million of seven-year senior secured notes.

The Rule 144A and Regulation S deal will be brought to market via joint bookrunners Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Jefferies & Co.

The notes will have four years of call protection and will then be callable at par plus ¾ of the coupon.

The notes will also have a standard three-year equity clawback feature allowing optional redemption of up to 35% of the issue.

The company - an iron ore producer in northern Minnesota, part of the India-based Essar Group conglomerate - plans to use the net proceeds from the offering to complete construction on its facility and begin commercial operations.

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