Published on 9/27/2012 in the Prospect News High Yield Daily.
New Issue: Ryerson prices $900 million notes in five-, six-year tranches
By Paul A. Harris
Portland, Ore., Sept. 27 - Ryerson Inc. and Joseph T. Ryerson & Son, Inc. priced a $900 million two-part offering of notes on Thursday, according to a syndicate source.
A $600 million tranche of five-year senior secured notes (Caa2/CCC+/) priced at par to yield 9%, on top of price talk.
A $300 million tranche of six-year senior unsecured notes (Caa3/CCC/) priced at par to yield 11¼%, also on top of price talk.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies & Co., UBS Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used to refinance the outstanding notes at Ryerson Inc. and Ryerson Holding Corp. and to repay borrowings on the company's ABL facility.
Ryerson is Chicago-based distributor and processor of metals and other materials.
| Issuers: | Ryerson Inc. & Joseph T. Ryerson & Son, Inc.
|
| Amount: | $900 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies & Co., UBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | KeyBanc Capital Markets, Macquarie Capital, PNC Capital Markets, Stephens Inc.
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 10
|
| Distribution: | Rule 144 A and Regulation S
|
| Marketing: | Brief roadshow
|
|
|
| Senior secured notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 837 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at a premium
|
| Equity clawback: | 35% at 109 until April 15, 2015
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 9% area
|
|
|
| Senior unsecured notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2018
|
| Coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 11¼%
|
| Spread: | 1,042 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2015, then callable at a premium
|
| Equity clawback: | 35% at 111.25 until Oct. 15, 2015
|
| Ratings: | Moody's: Caa3
|
| Standard & Poor's: CCC
|
| Price talk: | 11¼% area
|
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