Allegheny Technologies starts roadshow for $650 million senior notes in two tranches

By Paul A. Harris

Portland, Ore., Sept. 8 – Allegheny Technologies Inc. started a brief roadshow on Wednesday for a $650 million two-part public offering of senior notes (B3/B), according to market sources.

The deal includes eight-year notes, callable after three years at par plus 50% of the coupon, with initial guidance in the low-5% area.

The offering also includes 10-year notes, callable after five years at par plus 50% of the coupon, with initial guidance in the mid-5% area.

Tranche sizes will be $300 million minimum. Final sizes remain to be determined.

The deal is set to price on Friday.

BofA Securities Inc. is the left bookrunner. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. LLC are the joint bookrunners.

PNC Capital Markets LLC, MUFG and HSBC Securities (USA) Inc. are the co-managers.

The Pittsburgh-based specialty metals producer plans to use a portion of proceeds to call $500 million of its 5 7/8% senior notes due 2023, with the remainder to be used for general corporate purposes, including a voluntary $50 million defined benefit pension plan contribution during the third quarter of 2021.

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