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CMC Issues $400,000,000 of Senior Unsecured Notes

07/18/2007 - Commercial Metals has sold $400 million principal amount of Senior Unsecured Notes due 2017.

Commercial Metals Co. announced that it has sold $400 million principal amount of Senior Unsecured Notes due 2017. The Notes have a coupon rate of 6.50% and were sold at the offering price of $999.06 for each $1,000 of principal to yield 6.513% to maturity.
 
In anticipation of the offering, the company entered into hedge transactions based on then-existing Treasury rates, which had the effect of reducing the company's effective interest rate cost on the Notes to approximately 6.45%. The Notes were assigned a Baa2 rating by Moody's Investors Services, Inc. Standard & Poor's assigned a BBB rating.
 
In addition to funding construction and working capital for the company’s new micro-mill to be built in Arizona, CMC says net proceeds from the offering will also be used to repay its 6.80% notes due August 2007, to repay commercial paper and other short-term domestic bank borrowings, and for general corporate purposes.
 
Banc of America Securities LLC and ABN AMRO Incorporated acted as joint book-running managers on the transaction.
 
Headquartered in Irving, Texas, Commercial Metals Co. and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.