Railworks talks $325 million secured notes with 8¼% coupon at a discount to yield in 8¾% area

By Paul A. Harris

Portland, Ore., Nov. 4 – Railworks Holdings talked its $325 million offering of seven-year senior secured second-lien notes (B2/B) with an 8¼% coupon, with an original issue discount and a yield in the 8¾% area, according to market sources.

Initial guidance had the notes coming to yield in the mid-to-high 8% area.

The deal was expected to price late Thursday; however, no terms were available at press time.

J.P. Morgan Securities LLC and BMO Capital Markets Corp. are the leads.

The Rule 144A and Regulation S notes come with three years of call protection.

Proceeds will be used to fund the acquisition of the Chicago-based company by Bernhard Capital Partners Management from Wind Point Partners.

Railworks builds and maintains transportation infrastructure.

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