By Rebecca Melvin
New York, Dec. 13 - A. M. Castle & Co. priced $50 million of six-year convertible senior notes at par to yield 7% with an initial conversion premium of 20%, according to a news release.
The Rule 144A deal, which A. M. Castle priced concurrently with $225 million of five-year straight notes, came beyond the cheap end of talk for the coupon, which was 5.5% to 6%, and at the cheap end of 20% to 25% premium talk.
The convertibles' greenshoe was downsized to $7.5 million from $10 million.
The secured 12.75% straight notes priced at 96.5 to yield 13.741%. The secured notes offering was contingent on completion of the convertible notes offering. Closing for both is set for Dec. 15.
The deals were sold via bookrunner Jefferies & Co. Inc. The company also expects to enter into a new $100 million revolving credit facility.
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.
| Issuer: | A. M. Castle & Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million, downsized from $10 million
|
| Maturity: | Dec. 15, 2017
|
| Concurrent offering: | $225 million of five-year straight notes
|
| Bookrunner: | Jefferies & Co. Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 20%
|
| Conversion price: | $10.28
|
| Conversion ratio: | 97.2384
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Price talk: | 5.5%-6%, up 20%-25%
|
| Pricing date: | Dec. 12, post close
|
| Settlement date: | Dec. 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: CAS
|
| Stock price: | $8.57 as of close Dec. 12
|
| Market capitalization: | $202.6 million
|
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