Texas Industries, Inc. announced that its wholly-owned steel business, Chaparral Steel Co., has priced its $300 million aggregate principal amount senior notes due 2013 at 10%.

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

The 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. The company cautions that this announcement shall not constitute an offer to sell or a solicitation of an offer to buy such Notes in any jurisdiction in which such an offer or sale would be unlawful.

Chaparral Steel Co. is the second largest producer of structural steel products in North America and a major producer of steel bar products.