By Abigail W. Adams
Portland Me., Dec. 9 – Amsted Industries Inc. priced $400 million of senior notes due May 15, 2030 (Ba3/BB expected) at par to yield 4 5/8% in a Monday drive-by, according to a market source.
Pricing came tight to talk for a yield in the 4¾% area. Initial guidance was in the high 4% area, a source said.
Wells Fargo Securities LLC is lead left bookrunner for the Rule 144A and Regulation S offering. BofA Securities Inc., Citigroup Global Markets Inc., BB&T Capital Markets, Fifth Third Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc. are also bookrunners.
There is an optional redemption after May 15, 2025 with the first call at 102.313. Prior to May 15, 2025, the company may redeem the notes with a make-whole.
There is an equity clawback of 35% of the principal amount at a redemption price of 104.625.
Proceeds will be used to refinance Amsted Industries’ 5 3/8% senior notes due 2024.
Amsted Industries is a Chicago-based diversified manufacturer of industrial components.
| Issuer: | Amsted Industries Inc.
|
| Amount: | $400 million
|
| Maturity: | May 15, 2030
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC (lead), BofA Securities Inc., Citigroup Global Markets Inc., BB&T Capital Markets, Fifth Third Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, BMO Capital Markets Corp., HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Call protection: | Make-whole call prior to May 15, 2025; optional redemption thereafter; first call at 102.313
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4 ¾% area; initial talk high 4% area
|
| Marketing: | Quick to market
|
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