Ipsco holders tender 99.15% of 8¾% notes

By Angela McDaniels

Seattle, July 17 - Ipsco Inc. said it purchased $142.6 million, or 99.15%, of its 8¾% senior notes due 2013 during a tender offer and consent solicitation that expired at 5 p.m. ET on July 17.

The company will pay $1,068.59 per $1,000 principal amount. The payment includes a $15 consent payment for notes tendered by 5 p.m. ET on June 29, the consent deadline.

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 up to but excluding the settlement date.

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

Ipsco announced the tender offer on June 18.

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

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

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

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

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