AmeriTex starts brief roadshow for $530 million five-year notes; initial talk high-9% to 10% area

By Paul A. Harris

Portland, Ore., Sept. 26 – AmeriTex Pipe & Products plans to price a $530 million offering of AmeriTex Holdco Intermediate LLC senior notes due 2028 (expected ratings B2/B) on Thursday, according to market sources.

The deal is in the market with initial talk in the high-9% to 10% area and was fully spoken for in reverse inquiry at the time it launched, a bond trader said.

The Rule 144A and Regulation S five-year notes are subject to their first call after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

BofA Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

The Conroe, Tex.-based reinforced concrete pipe manufacturer plans to use the proceeds to repay amounts outstanding under its revolver and term loan A, as well as its senior subordinated notes, and to make a distribution to the company for distribution to its members, and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.