Rhombus prices tender offer for Ryerson's 8¼% notes

By Angela McDaniels

Seattle, Oct. 4 - Rhombus Merger Corp. will pay $1,080.11 for each of Ryerson Inc.'s 8¼% senior notes due 2011 tendered under an offer that began on Sept. 21.

The payout includes a $30.00 consent payment for notes tendered by the consent deadline. Noteholders will also receive accrued interest up to but excluding the payment date.

The tender offer expires at 8 a.m. ET on Oct. 22. The consent deadline was 5 p.m. ET on Oct. 4.

Pricing for the notes was determined on Oct. 3 based on the present value of the first redemption price - $1,041,25- plus interest payments through the first call date, discounted using the bid-side yield of the 3 3/8% U.S. Treasury note due Dec. 15, 2008 plus a fixed spread of 50 basis points. The reference yield was 4.062%, and the tender offer yield is 4.562%.

As of the consent deadline, the company had received tenders and consents for $145.1 million, or 96.7%, of the notes, according to a news release.

The consents will allow Rhombus to amend the indenture to eliminate substantially all of the restrictive covenants, some events of default and related provisions.

Rhombus Merger is a wholly owned subsidiary of Rhombus Holding Corp., which in turn is an affiliate of Platinum Equity LLC. Ryerson is being acquired by Platinum Equity in a $2 billion transaction that will take the company private.

The tender offer is subject to completion of the merger and related financing.

Banc of America Securities LLC (888 292-0070 or 704 388-9217) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information agent.

Ryerson is a Chicago-based metal processor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.