A. M. Castle $50 million five-year convertible senior notes to yield 5.5%-6%, up 20%-25%

By Rebecca Melvin

New York, Dec. 12 - Price talk on A. M. Castle & Co.'s planned $50 million of five-year convertible senior notes is for a coupon of 5.5% to 6% with an initial conversion premium of 20% to 25%, according to a market source on Monday.

The convertibles have a $10 million greenshoe.

A. M. Castle also priced $225 million of straight notes and plans a new $100 million revolving credit facility. The 12.75% five-year straight notes priced Monday at 96.5 to yield 13.741%, according to an informed source.

The Rule 144A deals were being sold via Jefferies & Co. Inc.

Proceeds were expected to be used to help finance the acquisition of Tube Supply Inc. and refinance existing debt.

Oak Brook, Ill.-based A. M. Castle is a maker and distributor of specialty metals and industrial plastics.

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