American Gilsonite to start roadshow Thursday for $260 million notes

By Paul A. Harris

Portland, Ore., Aug. 15 - American Gilsonite Co. will begin a brief roadshow on Thursday for a $260 million offering of five-year senior secured notes (confirmed B3/expected B), according to a syndicate source.

An investor group breakfast is scheduled for 8 a.m. ET on Thursday in Boston, to be followed by a group lunch at 1 p.m. ET in New York City.

An investor call is also set for 1 p.m. ET on Thursday.

The deal is set to price on Friday.

Bank of America Merrill Lynch and KeyBanc Capital Markets are the joint bookrunners. Cabrera Capital Markets is the co-manager.

The Rule 144A for life notes come with two years of call protection. However a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The Bonanza, Utah-based company plans to use the proceeds to repay all of its existing debt and to fund a special dividend to shareholders.

American Gilsonite is a miner and processor of uintaite, a unique mineral which the company markets under its trademark name Gilsonite. Gilsonite is a nonhazardous, naturally occurring hydrocarbon resin that has only been found in economically viable quantities in northeastern Utah, where the company controls the largest known reserves, according to the syndicate source.

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