Tube City launches $300 million term loan B at Libor plus 475-500 bps

By Sara Rosenberg

New York, March 5 - Tube City IMS Corp. launched a $300 million seven-year senior secured term loan B (B1) on Monday with price talk of Libor plus 475 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source.

The term loan B has 101 soft call protection for one year, the source said.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance an existing term loan B that matures on Jan. 25, 2014 and 9¾% senior subordinated notes due Feb. 1, 2015.

Commitments are due on March 16.

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

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