New Issue: Amsted Industries downsizes eight-year notes to $250 million, yield 10¼%

By Paul A. Harris

St. Louis, Aug. 8 - Amsted Industries Inc. priced a downsized $250 million senior notes due Oct. 15, 2011 (B3/B) at par on Friday to yield 10¼%, according to a syndicate source.

The deal was reduced from $275 million. Price talk had been for a yield in the 9½% area.

Citigroup and Banc of America Securities were joint bookrunners on the Rule 144A for life deal. The co-managers were Banc One Capital Markets and NatCity Investments.

Proceeds will be used to repay bank debt, for working capital and for general corporate purposes.

Amsted is a Chicago-based manufacturer of components for the rail, vehicular, construction and industrial markets.

Issuer:	Amsted Industries Inc.
Amount:	$250 million (decreased from $275 million)
Maturity:	Oct. 15, 2011
Security description:	Senior notes
Bookrunners:	Citigroup, Banc of America Securities
Co-managers:	Banc One Capital Markets, NatCity Investments
Coupon:	10¼%
Price:	Par
Yield:	10¼%
Spread:	634 basis points
Call features:	Callable on Oct. 15, 2007 at 105.125, then 102.563, declining to par on Oct. 15, 2009 and thereafter
Equity clawback:	Until Oct. 15, 2006 for 35% at 110.25
Settlement date:	Aug. 19, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B
Rule 144A Cusip:	032177AC1
Price talk:	9½% area

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