Ipsco prices tender for 8¾% notes

New York, July 12 - Ipsco Inc. announced pricing in its tender offer for its 8¾% senior notes due 2013.

The company will pay $1,068.59 per $1,000 principal amount, including the $15 consent payment. Holders who tendered after 5 p.m. ET on June 29 will receive the total less the consent payment, or $1,053.59 per $1,000 principal amount.

Pricing per $1,000 principal amount was set using the present value of $1,043.75, the redemption price of the notes on their first call date of June 1, 2008, discounted using the yield to maturity of the 4 7/8% Treasury due May 2008 and a fixed spread of 50 basis points, minus any accrued interest to, but not including, the settlement date.

The payout includes a $15.00 consent payment for those who tender by the consent deadline.

The company added that it will also pay accrued interest to the settlement date.

Ipsco announced the tender on June 18.

On July 2 it said it had received consents from holders of $142.6 million, or 99.15%, of the notes.

The consents received exceeded the amount needed to amend the note indenture to eliminate the restrictive covenants and modify certain other provisions.

The offer is linked to SSAB Svenskt Stal AB's previously announced agreement to acquire Ipsco.

The tender ends at 5 p.m. ET on July 17.

J.P. Morgan Securities Inc. is the dealer manager (866 834-4666). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470-4300).

Ipsco is a Lisle, Ill.-based steel producer.

© 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.