By Paul A. Harris
Portland, Ore., Dec. 23 – Real Alloy Holding Inc. priced a $305 million issue of 10% senior secured notes due Jan. 15, 2019 (B3/B/) at 90.827 to yield 13% on Tuesday, according to a market source.
Price talk was not broadly circulated on the deal, which was marketed during an early December roadshow.
The issuer is SGH Escrow Corp., a subsidiary of Signature Group Holdings, Inc., which is also the parent of Real Alloy.
Goldman Sachs & Co. was the left bookrunner. Deutsche Bank Securities Inc. was the joint bookrunner.
The Sherman Oaks, Calif.-based holding company plans to use the proceeds to fund its acquisition of the global recycling and specifications alloys business from Aleris Corp.
Signature Group invests primarily in the U.S. industrial and commercial marketplace.
| Issuer: | SGH Escrow Corp. (Real Alloy Holding, Inc.)
|
| Face amount: | $305 million
|
| Proceeds: | $277 million
|
| Maturity: | Jan. 15, 2019
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 10%
|
| Price: | 90.827
|
| Yield: | 13%
|
| Spread: | 1,144 bps
|
| First call: | Jan. 15, 2018 at 105
|
| Trade date: | Dec. 23
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
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