Ispat issues talk on $800 million two-tranche notes, restructures calls on floater

By Paul A. Harris

St. Louis, March 17 - Ispat Inland ULC issued price talk on its proposed $800 million two-tranche high-yield offering (Caa1/B-) on Wednesday, according to an informed source.

The Rule 144A/Regulation S deal is expected to price late Thursday via UBS Investment Bank.

The company intends to price $200 to $300 million of six-year floating-rate debt. The security description is "notes/loan," according to the source. Price talk is Libor plus 625 to 650 basis points.

The call structure was revised to make the issue non-callable for two years rather than non-callable for one year; the notes will become callable after two years at 103, with the premium declining annually thereafter to 102, 101, and to par.

The company also intends to sell $500 to $600 million of 10-year fixed-rate senior secured notes.

The fixed-rate notes will come with five years of call protection.

Price talk on the notes is 9¾% to 10%.

The company plans to use proceeds to repay debt.

Ispat Inland is an East Chicago, Ind., integrated steel company.

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