Allegheny Technologies Completes Notes Offering
06/02/2009 - Allegheny Technologies completes its public offering of $350,000,000 of 9.375% Senior Notes due 2019.
Allegheny Technologies Inc. has completed its previously announced public offering of senior notes in which ATI issued and sold $350,000,000 of 9.375% Senior Notes due 2019.
ATI said that it intends to use net proceeds from the offering to purchase any and all of its outstanding 8.375% Notes due 2011. As of Monday, June 1, there were $300 million in aggregate principal amount of 8.375% Notes outstanding. The company said it would use any remaining net proceeds for general corporate purposes.
Citi and J.P. Morgan Securities Inc. were the joint book-running managers for the offering.
ATI also announced that it has amended certain definitions and financial covenants in its $400-million senior unsecured domestic revolving credit facility to provide additional financial flexibility. The amendment restates the definition of consolidated earnings before interest and taxes and consolidated earnings before income, taxes, depreciation and amortization as used in the interest coverage and leverage ratios to exclude any non-cash pension expense or income and restates the definition of consolidated indebtedness used in the leverage ratio, which previously was based on gross indebtedness, to be net of cash on hand in excess of $50 million. The Company has not drawn upon its credit facilities in the last ten years.
Allegheny Technologies Inc., one of the largest and most diversified specialty metals producers in the world with revenues of $5.3 billion during 2008. The company’s products include titanium and titanium alloys, nickel-based alloys and superalloys, grain-oriented electrical steel, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, and forgings and castings.
