By Paul A. Harris
St. Louis, June 29 - Metals USA Holdings priced a restructured $300 million issue of five-year senior floating-rate payment-in-kind toggle notes (Caa1/CCC) at 97 on Friday, according to a market source.
The notes have an initial cash coupon of Libor plus 600 basis points and an initial PIK coupon of Libor plus 675 bps. The coupon steps up by 25 bps per year for the first three years.
The price talk was Libor plus 600 bps at 99, hence the notes were priced at a significantly deeper discount relative to talk.
UBS Investment Bank ran the books for the Rule 144A and Regulation S with registration rights issue.
The tenor of the notes was decreased to five years from seven years.
Proceeds will be used to redeem the 2006 holding company notes, to pay a cash dividend to stockholders and to make a special cash payment to stock option holders.
Metals USA is a Houston-based metals services provider.
| Issuer: | Metals USA Holdings
|
| Face amount: | $300 million
|
| Maturity: | July 1, 2012 (maturity decreased from 2014)
|
| Security description: | Senior floating-rate PIK toggle notes
|
| Bookrunner: | UBS Investment Bank
|
| Initial cash coupon: | Libor plus 600 bps
|
| Initial PIK coupon: | Libor plus 675 bps
|
| Step-ups: | Coupon steps up 25 bps per year for first three years
|
| Price: | 97
|
| First call: | Jan. 1, 2008 at 102.0
|
| Trade date: | June 29
|
| Settlement date: | July 10
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | Libor plus 600 at 99.00
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
