By Andrea Heisinger
Omaha, June 17 - Vulcan Materials Co. priced $650 million of senior unsecured notes (A3/A-) in two tranches Tuesday, an informed source said.
The $250 million 6.3% five-year notes priced at 99.799 to yield 6.348%, or Treasuries plus 270 basis points.
The $400 million of 7% 10-year notes priced at 99.895 to yield 7.015%, or Treasuries plus 280 bps.
Both tranches have make-whole redemption options of Treasuries plus 45 bps.
The tranches each came at the tight end of price talk, which was in the 275 bps area for the five-year notes and the 285 bps area for the 10-year notes.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC.
Co-managers were Morgan Keegan & Co., Inc., UBS Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc., Fifth Third Securities Inc. and the Williams Capital Group, LP.
Proceeds will be used to repay borrowings outstanding under a bridge, 364-day or five-year credit facility arranged in connection with mergers or commercial paper issuance.
The construction aggregates company is based in Birmingham, Ala.
| Issuer: | Vulcan Materials Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $650 million
|
| Change-of-control put: | 101%
|
| Trade date: | June 17
|
| Settlement date: | June 20
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | June 15, 2013
|
| Coupon: | 6.3%
|
| Price: | 99.799
|
| Yield: | 6.348%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Price talk: | 275 bps area
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2018
|
| Coupon: | 7%
|
| Price: | 99.895
|
| Yield: | 7.015%
|
| Spread: | Treasuries plus 280 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Price talk: | 285 bps area
|
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