American Rock Salt downsizes to $175 million, talks seven-year notes with 8 3/8% area yield

By Paul A. Harris

Portland, Ore., April 14 - American Rock Salt Co. LLC downsized its notes offering to $175 million from $200 million and set price talk on Thursday, according to an informed source.

The seven-year second-lien senior secured notes (B3/CCC+) are talked with a yield in the 8 3/8% area.

The deal is set to price on Friday.

Morgan Stanley & Co. Inc. has the books for the Rule 144A for life offering. RBS Securities Inc. is the co-manager.

The notes come with three years of call protection.

In addition to downsizing the bonds, the Retsof, N.Y.-based rock salt producer increased its term loan to $300 million from $250 million.

The overall amount of debt financing increased to $475 million from $450 million.

Proceeds will be used to repay debt at the holding company and fund a dividend. The additional proceeds generated by the upsizing of the overall debt financing will be used to increase the dividend.

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