By Paul A. Harris
Portland, Ore., Nov. 19 – Allegheny Technologies Inc. priced a $350 million issue of eight-year senior notes (B2/B) at par to yield 5 7/8% on Tuesday, according to market sources.
The yield printed at the tight end of yield talk in the 6% area and tighter than initial guidance in the low 6% area.
Timing of the deal was accelerated: When announced on Tuesday morning it came on a schedule which had the notes offered in the market overnight and pricing on Wednesday.
BofA Securities Inc. was the left bookrunner.
The Pittsburgh-based specialty metals manufacturer plans to use the proceeds, together with cash on hand, to redeem all of its outstanding 5.95% senior notes due 2021.
| Issuer: | Allegheny Technologies Inc.
|
| Amount: | $350 million
|
| Maturity: | Dec. 1, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunner: | Citigroup Global Markets Inc.
|
| Co-managers: | PNC Capital Markets LLC, MUFG, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and HSBC Securities (USA) Inc.
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 414 bps
|
| Call protection: | Three years
|
| Trade date: | Nov. 19
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | SEC registered
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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