Ryerson Tull upsized $145 million convertibles yield 3.5%, up 45%

New York, Nov. 4 - Ryerson Tull Inc. priced an upsized $145 million of convertible senior notes due 2024 to yield 3.5% with a 45% initial conversion premium.

The deal priced at the cheap end of talk, which had put the yield at 3% to 3.5% and the conversion premium at 45% to 50%.

The notes were increased from the $125 million originally announced and were restructured from a senior subordinated ranking.

Ryerson Tull also increased the greenshoe to $30 million from $25 million.

JPMorgan is the bookrunner on the Rule 144A deal. Pricing had been anticipated Friday morning but was advanced to Thursday after the close.

The conversion price on the notes is $21.37, equivalent to a ratio of 46.7880. On conversion, Ryerson Tull will pay cash for the principal amount and the remainder in stock.

Proceeds will be used to repay revolver debt.

Ryerson Tull is a Chicago distributor and processor of metals and other materials.

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