New Issue: Imco Recycling sells $210 million 10 3/8% seven-year notes to yield 10½%

By Paul A. Harris

St. Louis, Oct. 2 - Imco Recycling Inc. priced a slightly upsized offering of $210 million10 3/8% senior secured notes due Oct. 15, 2010 (B3/B-) at 99.383 on Thursday to yield 10½%, according to a syndicate source.

Price talk was for a yield in the 10½% area. The offering was increased from $200 million.

JP Morgan ran the books on the Rule 144A deal. The co-managers were Citigroup and PNC.

The issuer, an Irving, Tex.-based recycler of aluminum and zinc, will use proceeds from the bond sale to repay debt.

Issuer:	Imco Recycling Inc.
Amount:	$210 million (increased from $200 million)
Maturity:	Oct. 15, 2010
Security description:	Senior secured notes
Bookrunner:	JP Morgan
Co-managers:	Citigroup, PNC
Coupon:	10 3/8%
Price:	99.383
Yield:	10½%
Spread:	704 basis points
Call features:	Callable after Oct. 15, 2007 at 105.188, then 102.594, declining to par on Oct. 15, 2009 and thereafter
Equity clawback:	Until Oct. 15, 2006 for 35% at 110.50
Settlement date:	Oct. 6 (T+2)
Ratings:	Moody's: B3
	Standard & Poor's: B-
Rule 144A Cusip:	449681AA3
Price talk:	10½% area

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