Chaparral Steel Co. has launched an offering for $300 million of senior notes.

The offering will consist of floating and fixed rate notes due 2012 and 2013, respectively. The offering of the Senior Notes, which is subject to market availability as well as other conditions, will be made only to qualified institutional buyers and outside the United States in compliance with Regulation S.

Chaparral Steel intends to use the net proceeds from the offering, along with borrowings under a new senior secured revolving credit facility, to pay a cash dividend of approximately $341 million to TXI for the proposed spin-off of Chaparral Steel to TXI's shareholders.

The Senior Notes have not been registered under the Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy the notes.

Chaparral Steel Co. is wholly owned by Texas Industries.