By Paul A. Harris
St. Louis, Jan. 26 - Ryerson Holding Corp. raised $220 million with an issue of 14½% five-year senior discount notes (Caa3/CCC), on Tuesday, according to an informed source.
The notes, which priced in a face amount of $483 million, came at a reoffer price of 45.598, resulting in a yield of 16.32%. They have a 0% coupon and a 14½% accretion rate.
Bank of America Merrill Lynch and UBS Investment Bank were joint bookrunners.
Proceeds will be used to fund a cash distribution to shareholders.
Ryerson is a Chicago-based distributor and processor of metals, with operations in North America and China.
| Issuer: | Ryerson Holding Corp.
|
| Face amount: | $483 million
|
| Proceeds: | $220.238 million
|
| Maturity: | Feb. 1, 2015
|
| Securities: | Senior discount notes
|
| Bookrunners: | Bank of America Merrill Lynch, UBS Investment Bank
|
| Co-manager: | KeyBanc Capital Markets
|
| Coupon: | 0% (14½% accretion rate)
|
| Price: | 45.598
|
| Yield: | 16.32%
|
| Spread: | 1,398 bps
|
| Call protection: | Callable until May 1, 2010
|
| Trade date: | Jan. 26
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody's: Caa3
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A with registration rights
|
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