Allegheny Technologies Prices Notes Offerings
05/28/2009 - Allegheny Technologies has priced its concurrent public offerings of senior notes due 2019 and convertible notes due 2014.
Allegheny Technologies Inc. has priced its concurrent public offerings of senior notes due 2019 and convertible notes due 2014.
ATI has agreed to sell $350 million of 9.375% Senior Notes due 2019. They will pay interest semi-annually in arrears at a rate of 9.375% per year and will mature on June 1, 2019, unless earlier repurchased. The company says it will use proceeds from the offering to purchase any and all of its outstanding 8.375% Notes due 2011; there are currently $300 million of 8.375% Notes outstanding. The company said that it would use any remaining proceeds for general corporate purposes.
ATI also announced the pricing of its offering of $350 million of 4.25% Convertible Senior Notes due 2014. ATI has granted underwriters a 30-day option to purchase up to an additional $52.5 million of the Convertible Notes on the same terms and conditions to cover over-allotments, if any. The Convertible Notes will pay interest semi-annually in arrears at a rate of 4.25% per year and will mature on June 1, 2014, unless earlier repurchased or converted. ATI says it will use net proceeds from the offering to manage its liabilities and other obligations, including voluntary contributions to its defined benefit pension trust and contributions to trusts established to fund retiree medical benefits; any balance will be used for general corporate purposes.
Neither the completion of the senior notes offering nor the convertible notes offering will be contingent on the completion of the other.
Citi and J.P. Morgan Securities Inc. are the joint book-running managers for the Senior Notes offering, and J.P. Morgan Securities Inc. and Citi are the joint book-running managers for the Convertible Notes offering.
Allegheny Technologies is one of the largest and most diversified specialty metals producers in the world with revenues of $5.3 billion during 2008. ATI’s major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Its 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.
