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Commercial Metals Sells Senior Unsecured Notes
08/05/2008 - Commercial Metals Company sells $500 million principal amount of Senior Unsecured Notes due 2018.
Commercial Metals Co. has sold $500 million principal amount of Senior Unsecured Notes due 2018.
The Notes have a coupon rate of 7.35% and were sold at the offering price of $998.28 for each $1,000 of principal to yield 7.374% to maturity.
In anticipation of the offering, the Company entered into a hedge transaction based on then-existing Treasury rates, which had the effect of reducing the company's effective interest rate cost on the Notes to approximately 7.29%. The Notes were assigned a Baa2 rating by Moody's Investors Service, Inc., and Standard & Poor's assigned a BBB rating.
CMC said it intends to use net proceeds from the offering to repay its 6.75% notes due February 15, 2009, to repay commercial paper including that incurred to fund the purchase price of recently completed acquisitions, to fund the purchase price of future acquisitions, and for general corporate purposes.
Banc America Securities LLC and J.P. Morgan Securities Inc. acted as joint book-running managers on the transaction.
Headquartered in Irving, Texas, Commercial Metals and its 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 international markets.
