Valmont begins tender offer for $200 million of 6.625% notes due 2020

By Susanna Moon

Chicago, Sept. 8 – Valmont Industries, Inc. said it began a tender offer for up to $200 million principal amount of its $450 million outstanding 6.625% senior notes due 2020.

Pricing will be set at 1 p.m. ET on Sept. 19 using the yield of the bid-side price of the 1.625% U.S. Treasury notes due Aug. 31, 2019 plus a spread of 85 basis points.

The hypothetical total purchase price was set at $1,211.99 per $1,000 principal amount using a reference yield of 1.676% at 1 p.m. ET on Sept. 5 and a tender offer yield of 2.526%.

The total payment includes an early tender premium of $40.00 per $1,000 of notes tendered by 5 p.m. ET on Sept. 19, the early tender date.

The tender offer will end at 11:59 p.m. ET on Oct. 3.

The company also will pay accrued interest to but excluding the settlement date of Sept. 22 for early tendered notes and Oct. 6 for remaining tenders.

Those who tender after the early tender deadline will receive the total payment less the early premium.

Tendered notes may be withdrawn by the early tender date.

The tender offer is conditioned on Valmont obtaining funding from the issue of senior notes.

BofA Merrill Lynch (888 292-0070 or 980 387-3907 collect) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811 collect) are the dealer managers. D.F. King & Co., Inc. (800 758-5378 or 212 269-5550 collect) is the information agent and tender agent.

The Omaha-based company designs and manufactures fabricated metal products.

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