By Paul A. Harris
St. Louis, Feb. 1 - RathGibson Inc. priced a $200 million issue of eight-year senior notes (B2/B-) at par on Wednesday to yield 11¼%, according to an informed source.
There had been no official price talk.
Bear Stearns & Co. had the books for the notes, which were sold via Rule 144A with registration rights. Wachovia Securities was the co-manager.
Proceeds will be used to fund the leveraged buyout of the company by Castle Harlan, Inc.
RathGibson is a Janesville, Wis., tubing and piping supplier for oil and gas, power generation, food and dairy, biotechnology and chemical processing industries.
| Issuer: | RathGibson Inc.
|
| Amount: | $200 million
|
| Maturity: | Feb. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunner: | Bear Stearns & Co.
|
| Joint lead manager: | Wachovia Securities
|
| Coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 11¼%
|
| Spread: | 667 basis points
|
| Call features: | Callable after Feb. 15, 2010 at 105.625, 102.813, par on and after Feb. 15, 2012
|
| Equity clawback: | Until Feb. 15, 2009 for 35% at 111.25
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
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