By Michelle Anderson
Rochester, N.H., Feb. 23 - American Railcar Industries, Inc. priced an upsized $275 million issue of seven-year senior unsecured notes (B1/BB-) at par to yield 7½% on Friday, according to an informed source.
The yield was printed at the tight end of the 7½% to 7¾% price talk.
UBS Investment Bank was the left bookrunner for the Rule 144A and Regulation S with registration rights issue, which was upsized from $250 million. Bear Stearns was the joint bookrunner.
Proceeds will be used for general corporate purposes, including capital expenditures, strategic transactions and working capital.
American Railcar is a St. Charles, Mo.-based manufacturer, designer and marketer of covered hopper rail cars.
| Issuer: | American Railcar Industries, Inc.
|
| Amount: | $275 million (originally $250 million)
|
| Maturity: | March 1, 2014
|
| Security description: | Senior unsecured notes
|
| Left bookrunner: | UBS Investment Bank
|
| Joint bookrunner: | Bear Stearns & Co.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 282 bps
|
| Call features: | Callable on March 1, 2011 at 103.75, 101.875, par on and after March 1, 2013
|
| Equity clawback: | Until March 1, 2010 for 35% at 107.50
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 7½% to 7¾%
|
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