Accuride eight-year secured notes deal talked at 101/4-10 ½% yield

By Paul Deckelman

New York, July 21 - Accuride Corp.'s planned $300 million offering of eight-year first-priority senior secured notes is expected to price to yield in the 10¼% to 10½% area, including a discount from par of between 2 points to 3 points, junk bond market syndicate sources said on Wednesday.

Those sources said the books on the deal would be closing at 11:30 a.m. ET Thursday, with pricing expected sometime thereafter.

After the Evansville, Ind.-based maker of steel and aluminum wheels and other truck and commercial vehicle components announced its plans for the offering this past Monday, sources heard that the company had begun a roadshow to market the deal to investors and said at that time that the deal would likely price sometime during the July 26 week.

Credit Suisse and Deutsche Bank Securities Inc. are the joint bookrunners for the Rule 144A and Regulation S deal, which is being sold with registration rights.

The notes have four years of call protection and then become callable at par plus one-half the coupon. The notes feature a special call entitling the issuer to redeem 10% of the issue per year at a price of 103 during the non-call period.

The notes are secured by a first lien on real property and on tangible and intangible assets and a second lien, behind the company's asset-backed loan, on accounts receivable and inventories.

Accuride plans to use the proceeds from the new deal, plus about $10 million under a new asset-based revolving credit facility and cash on hand, to refinance the company's existing senior credit facility.

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