By Paul A. Harris
St. Louis, May 10 - Noranda Aluminum Holding Corp. priced $510 million eight-year senior unsecured floating-rate pay-in-kind toggle notes (B3/B-) at par to yield six-month Libor plus 400 basis points on Thursday, according to an informed source.
The yield came at the tight end of the six-month Libor plus 400 to 425 bps price talk.
The coupon steps up to 475 bps points should the issuer elect to make an in-kind, as opposed to cash, interest payment.
Merrill Lynch & Co., Citigroup and Goldman Sachs & Co. were joint bookrunners. UBS Investment Bank and KeyBanc Capital Markets were the co-managers.
Proceeds, together with an equity contribution from Apollo Management LP, will be used to help finance the purchase of Noranda by Apollo from Xstrata AG.
Noranda is a Franklin, Tenn.-based aluminum producer.
| Issuer: | Noranda Aluminum Holding Corp.
|
| Amount: | $510 million
|
| Maturity: | May 15, 2015
|
| Security description: | Senior unsecured floating-rate PIK toggle notes
|
| Bookrunners: | Merrill Lynch & Co., Citigroup, Goldman Sachs & Co.
|
| Co-managers: | UBS Investment Bank, KeyBanc Capital Markets
|
| Cash coupon: | Six-month Libor plus 400 bps
|
| PIK toggle coupon: | Six-month Libor plus 475 bps
|
| Price: | Par
|
| Yield: | Six-month Libor plus 400 bps
|
| Call features: | Callable on May 15, 2008 at 102, 101, par on and after May 15, 2010
|
| Equity clawback: | Until May 15, 2008 for 35% at par plus applicable coupon
|
| Trade date: | May 10
|
| Settlement date: | May 18
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Six-month Libor plus 400 to 425 bps
|
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