By Cristal Cody
Tupelo, Miss., June 8 – Valmont Industries Inc. priced a $255 million reopening of senior notes (Baa3/BBB+) in two tranches on Friday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $200 million of 5% senior notes due Oct. 1, 2044 at 93.15 to yield 5.468%, or a spread of Treasuries plus 239.2 basis points.
In the add-on to its 5.25% senior notes due Oct. 1, 2054, Valmont priced $55 million of the issue at 92.038 to yield 5.776%. The notes priced with a Treasuries plus 270 bps spread.
The company originally sold $250 million of the 5% notes on Sept. 8, 2014 at 99.536 to yield 5.03% and a spread of 180 bps over Treasuries. The total outstanding now is $450 million.
Valmont also first sold $250 million of the 5.25% notes on Sept. 8, 2014 at 98.68 to yield 5.33%, or a spread of Treasuries plus 210 bps. The total outstanding now is $305 million.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Merrill Lynch were the bookrunners.
Proceeds will be used for general corporate purposes, including to redeem some or all of the company’s 6.625% senior notes due 2020 at the make-whole redemption price.
The Omaha-based company designs and manufactures fabricated metal products.
| Issuer: | Valmont Industries Inc.
|
| Guarantors: | Subsidiaries that guarantee the company’s revolving credit facility
|
| Amount: | $255 million reopening
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and BofA Merrill Lynch
|
| Senior co-managers: | U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | ANZ Securities, Inc., Citigroup Global Markets Inc. and Rabo Securities USA, Inc.
|
| Trade date: | June 8
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2044
|
| Amount: | $200 million reopening
|
| Description: | Fixed-rate notes
|
| Maturity: | Oct. 1, 2044
|
| Coupon: | 5%
|
| Price: | 93.51
|
| Yield: | 5.468%
|
| Spread: | Treasuries plus 239.2 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before April 1, 2044; thereafter at par
|
| Total outstanding: | $450 million, including $250 million of notes priced Sept. 8, 2014 at 99.536 to yield 5.03% and a spread of 180 bps over Treasuries
|
|
|
| Notes due 2054
|
| Amount: | $55 million reopening
|
| Description: | Fixed-rate notes
|
| Maturity: | Oct. 1, 2054
|
| Coupon: | 5.25%
|
| Price: | 92.038
|
| Yield: | 5.776%
|
| Spread: | Treasuries plus 270 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before April 1, 2054; thereafter at par
|
| Total outstanding: | $305 million, including $250 million of notes priced Sept. 8, 2014 at 98.68 to yield 5.33% and a spread of Treasuries plus 210 bps
|
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