By Paul Deckelman
New York, March 25 - European steelmaker Aperam priced a $500 million two-part offering of senior notes (B1/BB) on Friday, high yield syndicate sources said.
The company priced $250 million of senior notes due 2016 at par to yield 7 3/8%, in the middle of pre-deal market price talk envisioning a yield between 7¼% and 7½%.
It also brought to market a $250 million tranche of senior notes due 2018 at par to yield 7¾%, in line with Thursday's price talk of a yield in the 7¾% area.
The 2016 bonds carry 2½ years of call protection, while the 2018 bonds are non-callable for four years.
Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. and ING Financial Markets LLC are the bookrunners on the deal, which first surfaced in the market on Tuesday, and was then shopped around to investors over the next few days via a short roadshow that began on Tuesday in New York and included stops in Boston and Los Angeles.
The bonds are being sold under Regulation S and Rule 144A for the life of the issue.
Aperam - a Luxembourg-based stainless steel producer spun off from international steel giant ArcelorMittal earlier this year - plans to use the deal proceeds, along with cash on hand, to repay outstanding amounts under its bridge facility with its former corporate parent.
| Issuer: | Aperam
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. and ING Financial Markets LLC (joint)
|
| Price: | Par
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Change of control: | Investor put at 101%
|
| Trade date: | March 25
|
| Settlement date: | March 30
|
| Distribution: | Regulation S/Rule 144A for life
|
| Marketing: | Short roadshow
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | April 1, 2016
|
| Coupon: | 7 3/8%
|
| Yield: | 7 3/8%
|
| Spread: | 527 bps over 2 1/8% Treasury due in February 2016
|
| Call features: | Make-whole call at T+50 bps; otherwise non-callable until Oct. 1, 2013; then callable at 103.688, 101.844 and finally at par on or after October 1, 2015
|
| Equity clawback: | Until April 1, 2013 for 35% of the notes at 107.375
|
| Price talk: | 7¼% to 7½%
|
|
|
| Seven-year notes
|
| Amount: | $250 million
|
| Maturity: | April 1, 2018
|
| Coupon: | 7¾%
|
| Yield: | 7¾%
|
| Spread: | 496 bps over 2¾% Treasury due in February 2018
|
| Call features: | Make-whole call at T+50 bps; otherwise non-callable until April 1, 2015; then callable at 103.875, 101.938 and finally at par on or after April 1, 2017
|
| Equity clawback: | Until April 1, 2014 for 35% of the notes at 107.75
|
| Price talk: | 7¾% area
|
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