By Cristal Cody
Tupelo, Miss., July 28 – Reliance Steel & Aluminum Co. priced an upsized $900 million of senior notes (Baa3/BBB/BBB) in two tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $400 million tranche of 1.3% five-year notes priced at 99.694 to yield 1.363%, or a spread of Treasuries plus 110 basis points.
Initial price talk was in the Treasuries plus 145 bps area.
The company sold $500 million of 2.15% 10-year notes at 99.722 to yield 2.181%.
The 10-year notes priced with a spread of 160 bps over Treasuries versus talk in the 200 bps area.
The deal was upsized from an expected $800 million offering.
J.P. Morgan Securities LLC, BofA Securities Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay debt under the company’s unsecured revolving credit facility and unsecured term loan and for general corporate purposes.
The metals service center company is based in Los Angeles.
| Issuer: | Reliance Steel & Aluminum Co.
|
| Amount: | $900 million
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | PNC Capital Markets LLC and TD Securities (USA) LLC
|
| Co-managers: | U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., MUFG, HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey, Inc. and Comerica Securities, Inc.
|
| Trade date: | July 28
|
| Settlement date: | Aug. 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 1.3%
|
| Price: | 99.694
|
| Yield: | 1.363%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before July 15, 2025 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | Aug. 15, 2030
|
| Coupon: | 2.15%
|
| Price: | 99.722
|
| Yield: | 2.181%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call before May 15, 2030 at Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps area
|
|
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