By Paul A. Harris
Portland, Ore., Sept. 28 - International Wire Group, Inc. priced a restructured $250 million issue of five-year senior notes (B3/B/) at par to yield 8½% on Friday, according to a market source.
The yield printed at the wide end of the 8¼% to 8½% yield talk.
Structural changes included the extension of call protection to three years from two years and the elimination of a special call provision that would have allowed the issuer to redeem up to 10% of the notes annually at 103 during the non-call period.
The deal also underwent covenant changes.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Jefferies & Co. were the joint bookrunners.
The Camden, N.Y.-based wire products manufacturer plans to use the proceeds, along with advances under its revolver, to retire all of its senior notes due 2015, and all of International Wire Group Holdings, Inc.'s PIK notes, as well as to fund a special distribution to Holdings, the proceeds of which will be used by the holding company to make a distribution and/or a stock repurchase.
| Issuer: | International Wire Group, Inc.
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Jefferies & Co.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 788 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2015, then callable at 104.25, par on and after Oct. 15, 2016 (call protection increased to three years from two years)
|
| Equity clawback: | 35% at 108.5 until Oct. 15, 2014
|
| Trade date: | Sept. 28
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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