U.S. Steel gives early results of three-note tender offer, ups caps

By Marisa Wong

Los Angeles, Aug. 31 – United States Steel Corp. and subsidiaries Big River Steel LLC and BRS Finance Corp. announced the early results of their Aug. 17 tender offers to purchase for cash up to a total of $300 million principal amount of notes from three series.

Based on the early tender results, the offerors also announced an increase in the tender cap to $300,859,000, an increase of the 2029 notes series sub-cap to $225,001,000 from $225 million and an increase of the 2037 notes series sub-cap to $75,858,000 from $75 million, according to a Wednesday press release.

As of 5 p.m. ET on Aug. 30, the early tender date, holders had tendered the following notes, listed by acceptance priority levels:

• $350,529,000 of the $700 million outstanding 6 7/8% senior notes due 2029 (Cusip: 912909AU2) issued by U.S. Steel, subject to the amended series sub-cap of $225,001,000, for a total consideration of $995;

• $75,858,000 of the $350 million outstanding 6.65% senior notes due 2037 (Cusip: 912909AD0) issued by U.S. Steel, subject to the amended series sub-cap of $75,858,000, for a total consideration of $920; and

• None of the $720 million outstanding 6 5/8% senior secured notes due 2029 (Cusip: 08949LAB6, U0901LAB6) issued by Big River Steel and BRS Finance, subject to the unchanged series sub-cap of $75 million, for a total consideration of $1,025.

The total consideration, listed per $1,000 note, includes a $50 early tender premium for notes tendered by the early deadline.

The offerors have accepted for purchase $225,001,000 of the early tendered 2029 notes and $75,858,000 of the early tendered 2037 notes, equivalent to the amended series sub-caps.

A proration factor of 64.3% will be applied to the 2029 notes, but the 2037 notes have been accepted in full with no proration factor.

Settlement of the early tendered notes is expected to occur on Sept. 1.

Accrued interest will also be paid on the notes.

The tender offers are scheduled to expire at 11:59 p.m. ET on Sept. 14. However, because the tender cap has been reached, no securities tendered after the early tender date will be accepted, and there will be no final settlement date.

Goldman, Sachs & Co. LLC (800 828-3182, 212 902-5962), Credit Suisse Securities (USA) LLC (800 820-1653, 212 325-6340), J.P. Morgan Securities LLC (866 834-4666, 212 834-3822) and Wells Fargo Securities, LLC (866 309-6316, 704 410-4759) are the dealer managers.

D.F. King & Co., Inc. (800 659-5550, 212 269-5550, uss@dfking.com) is the information and tender agent for the offer.

The steel producer is based in Pittsburgh.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.