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Valmont accepts $199.8 million 6.625% notes in oversubscribed offer
By Angela McDaniels
Tacoma, Wash., Sept. 22 – Valmont Industries, Inc.’s tender offer for up to $200 million principal amount of its $450 million outstanding 6.625% senior notes due 2020 was oversubscribed as of the early tender date, according to a company news release.
Holders had tendered $301 million principal amount, or 66.9%, of the notes as of 5 p.m. ET on Sept. 19, the early tender date.
Because the amount tendered exceeds the offer cap, the notes accepted for purchase are subject to proration. As a result, Valmont has accepted for purchase $199.8 million principal amount of notes and will not accept any notes tendered after the early tender date.
The company will pay $1,163.62 per $1,000 principal amount of notes tendered by the early tender date, which includes a $40.00 early tender premium, plus accrued interest up to but excluding the early settlement date, which was expected to be Sept. 22.
Pricing was set at 1 p.m. ET on Sept. 19 using the yield of the bid-side price of the 1.625% U.S. Treasury notes due Aug. 31, 2019 plus a spread of 85 basis points.
The tender offer began Sept. 8 and was scheduled to expire on 11:59 p.m. ET on Oct. 3.
The tender offer is conditioned on Valmont obtaining funding from an issue of senior notes.
As previously reported, the company priced $250 million of 5% 30-year bonds at 99.536 to yield 5.03%, or Treasuries plus 180 bps, and $250 million of 5.25% notes due 2054 at 98.68 to yield 5.33%, or Treasuries plus 210 bps, on Sept. 8. The issue was scheduled to settle Sept. 18.
BofA Merrill Lynch (888 292-0070 or 980 387-3907) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the dealer managers for the tender offer. D.F. King & Co., Inc. (800 758-5378 or 212 269-5550 collect) is the information agent and tender agent.
Omaha-based Valmont makes engineered products and services for infrastructure and mechanized irrigation equipment for agriculture.
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