TMS talks downsized $275 million eight-year notes at 7¾% area yield

By Paul A. Harris

Portland, Ore., Oct. 3 - TMS International Corp. downsized its offering of eight-year senior notes (B3/B-) to $275 million from $300 million and talked the notes to yield in the 7¾% area, market sources said on Thursday.

That talk came 25 basis points below the tight end of earlier guidance of 8% to 8¼%, sources said.

The books are closed, and the deal is expected to price Friday, according to a buyside source.

Goldman Sachs & Co., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Deutsche Bank Securities Inc. are the bookrunners.

The Rule 144A and Regulation S notes come with three years of call protection.

Proceeds will be used to help fund the buyout of the company by certain members of the Pritzker family.

The issuing entity is Crystal Merger Sub, Inc., an entity formed by family business interests of Thomas J. Pritzker and Gigi Pritzker, as advised by the Pritzker Organization, LLC.

TMS International is a Glassport, Pa.-based provider of outsourced industrial services to steel mills.

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