By Paul A. Harris
Portland, Ore., May 12 – Ryerson Holding Corp. priced a $650 million issue of six-year senior secured notes (Caa1/B-) at par to yield 11% on Thursday, according to a syndicate source.
The yield printed 25 basis points below the tight end of the 11¼% to 11½% yield talk. However the yield did come more in line with early guidance in the low 11% yield context.
BofA Merrill Lynch was the left bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BMO Securities and Goldman Sachs & Co. were the joint bookrunners.
Proceeds, along with available cash and/or borrowings under the company’s senior secured asset-based revolving credit facility, will be used to repurchase and/or redeem in full JT Ryerson’s 9% senior secured notes due 2017 and repurchase up to $95 million of JT Ryerson’s 11¼% senior notes due 2018.
The issuing entity is Joseph T. Ryerson & Son, Inc., a wholly owned subsidiary of the Chicago-based processor and distributor of metals, with operations in the United States, Canada, Mexico and China.
| Issuer: | Joseph T. Ryerson & Son, Inc.
|
| Amount: | $650 million
|
| Maturity: | May 15, 2022
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BMO Securities, Goldman Sachs & Co.
|
| Co-managers: | KeyBanc Capital Markets, PNC Capital Markets
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 959 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until May 15, 2019, then callable at a premium
|
| Trade date: | May 12
|
| Settlement date: | May 24
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A for life
|
| Price talk: | 11¼% to 11½%
|
| Marketing: | Roadshow
|
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