Vulcan plans three-part fixed-, floating-rate notes, including add-on

By Devika Patel

Knoxville, Tenn., June 12 – Vulcan Materials Co. intends to price a three-part dollar-denominated offering of notes, according to a 424B2 filing with the Securities and Exchange Commission.

The deal includes two tranches of fixed-rate notes, including an add-on to its 3.9% senior notes (Baa3/BBB/BBB-) due April 1, 2027 and a second tranche due 2047, and one tranche of floating-rate notes due 2020.

The add-on is to a March 9 offering that priced at 99.603 to yield 3.948% with a spread of 135 basis points over Treasuries.

The floaters may be redeemed at 101 if the company's planned acquisition of Aggregates USA, LLC does not take place, or until the redemption trigger date. The fixed-rate notes feature a make-whole call and then a par call.

BofA Merrill Lynch, Goldman Sachs & Co., SunTrust Robinson Humphrey Inc., Regions Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners. FTN Financial Securities Corp., Synovus Securities Inc. and Williams Capital Group LP are the co-managers.

Proceeds will be used for the acquisition of Aggregates USA, the planned redemption of the company's 7% notes due 2018 and the planned redemption of its 10.375% notes due 2018.

Vulcan makes construction materials and is based in Birmingham, Ala.

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