New Issue: Ispat prices $800 million in two tranches

By Paul A. Harris

St. Louis, March 18 - Ispat Inland ULC priced $800 million of senior secured notes (Caa1/B-) in two tranches on Thursday, according to an informed source.

The East Chicago, Ind., integrated steel company sold $650 million of 10-year fixed-rate notes at 99.212 with a 9¾% coupon to yield 9 7/8%. Price talk was 9¾% to 10%.

The company also sold $150 million of seven-year floating-rate notes at par to yield three-month Libor plus 675 basis points. Price talk was Libor plus 625 to 650 basis points.

UBS Investment Bank ran the books on the Rule 144A/Regulation S issue.

Proceeds will be used to repay debt.

Issuer:	Ispat Inland ULC
Amount:	$800 million
Security description:	Senior secured notes
Bookrunner:	UBS Investment Bank
Pricing date:	March 18
Settlement date:	March 25
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Fixed-rate tranche
Amount:	$650 million
Maturity:	April 1, 2014
Coupon:	9¾%
Price:	99.212
Yield:	9 7/8%
Spread:	613 basis points
Call features:	Callable after April 1, 2009 at 104.875, 103.25, 101.625, par on or after April 1, 2012
Equity clawback:	Until April 1, 2007 for 35% at 109.75
Price talk:	9¾%-10%
Floating-rate tranche
Amount:	$150 million
Maturity:	April 1, 2010
Coupon:	Three-month Libor plus 675 basis points
Price:	Par
Yield:	Three-month Libor plus 675 basis points
Call features:	Callable after April 1, 2006 at 103, 102, 101, par on or after April 1, 2009
Price talk:	Libor plus 625-650 basis points

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