New Issue: Horsehead prices $175 million 10½% five-year notes to yield 11%

By Paul A. Harris

Portland, Ore., July 19 - Horsehead Holding Corp. priced a $175 million issue of 10½% five-year senior secured notes (B2/B-/) at 98.188 to yield 11% on Thursday, according to an informed source.

Guidance in the 10½% area had been circulated while the deal was in the market, the source added.

Cowen & Co. was the lead left bookrunner. CRT Capital Group LLC was the joint bookrunner and allocating book manager.

Proceeds will be used to fund the construction of the company's Rutherford, N.C. plant.

Pittsburgh-based Horsehead Holding is the parent company of Horsehead Corp., which produces specialty zinc and zinc-based products and recycles electric arc furnace dust.

Issuer:	Horsehead Holding Corp.
Face amount:	$175 million
Proceeds:	$171,829,000
Maturity:	June 1, 2017
Securities:	Senior secured notes
Lead left bookrunner:	Cowen & Co.
Allocating book manager/joint bookrunner:	CRT Capital Group LLC
Coupon:	10½%
Price:	98.188
Yield:	11%
Call features:	Make-whole call at Treasuries plus 50 bps until June 1, 2015, then callable at 105.25, par on and after June 1, 2016 (the redemption period may be extended under certain conditions if the new zinc plant is not operational prior to April 1, 2014)
Equity clawback:	35% at 110.5 until June 1, 2015
Change-of-control put:	101%
Trade date:	July 19
Settlement date:	July 25
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Price guidance:	10½% area

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