By Paul A. Harris
Portland, Ore., Sept. 9 – Allegheny Technologies Inc. priced an upsized $675 million of senior notes (B3/B) in two tranches on Thursday, according to market sources.
The deal, which was upsized from $650 million, included $325 million of eight-year notes that priced at par to yield 4 7/8%. The yield printed at the tight end of yield talk in the 5% area. Initial guidance was in the low 5% area.
Allegheny Technologies also priced $350 million of 10-year notes at par to yield 5 1/8%. The yield printed at the tight end of yield talk in the 5¼% area. Initial talk was in the mid-5% area.
Timing was accelerated, as the deal had previously been expected to remain in the market until Friday.
Demand was heard to be $3.4 billion across both tranches, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. LLC.
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.
| Issuer: | Allegheny Technologies Inc.
|
| Amount: | $675 million, increased from $650 million
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | PNC Capital Markets LLC, MUFG and HSBC Securities (USA) Inc.
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
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| Amount: | $325 million
|
| Maturity: | Oct. 1, 2029
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps prior to Oct. 1, 2024, then callable at 102.438
|
| Equity clawback: | For up to 35% at 104.875 prior to Oct. 1, 2024
|
| Change-of-control: | At 101
|
| Price talk: | 5% area
|
| Cusip: | 01741RAL6
|
|
|
| 10-year notes
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| Amount: | $350 million
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| Maturity: | Oct. 1, 2031
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| Coupon: | 5 1/8%
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| Price: | Par
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| Yield: | 5 1/8%
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| Call protection: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2026, then callable at 102.563
|
| Equity clawback: | For up to 35% at 105.125 prior to Oct. 1, 2024
|
| Change-of-control: | At 101
|
| Price talk: | 5¼% area
|
| Cusip: | 01741RAM4
|
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