By Paul A. Harris
Portland, Ore., Aug. 17 - American Gilsonite Co. priced a $260 million issue of five-year senior secured notes (B3/B/) at par to yield 11½% on Friday, according to a syndicate source.
The yield printed on top of yield talk.
Bank of America Merrill Lynch and KeyBanc Capital Markets Inc. were the joint bookrunners.
The notes have a make-whole call at Treasuries plus 50 basis points until Sept. 1, 2014, at which time they will become callable at 108.625. A special call provision which would have allowed the issuer to redeem 10% of the notes annually at 103 during the non-call period was withdrawn.
Proceeds from the sale of the notes issue will be used to repay all of the company's existing debt and to fund a special dividend to shareholders.
The issuer is a Bonanza, Utah-based miner and processor of uintaite, a unique mineral which the company markets under its trademark name Gilsonite.
| Issuer: | American Gilsonite Co.
|
| Amount: | $260 million
|
| Maturity: | Sept. 1, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, KeyBanc Capital Markets Inc.
|
| Co-manager: | Cabrera Capital Markets, LLC
|
| Coupon: | 11½%
|
| Price: | Par
|
| Yield: | 11½%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2014 at 108.625, 105.75, par on and after 2016 (special call provision, allowing issuer to redeem 10% of notes annually during the non-call period is withdrawn)
|
| Equity clawback: | 35% at 111.5 until Sept. 1, 2014
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 28
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11½%
|
| Marketing: | Roadshow
|
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