Consolidated Minerals talks $400 million six-year notes at 8¼% area

By Paul Deckelman

New York, May 2 - Price talk emerged on Consolidated Minerals Ltd.'s $400 million offering of six-year senior secured notes, high-yield market sources said Friday.

The offering is being talked to yield in the area of 8¼%, with an original issue discount of about 1 point.

Books are scheduled to close at 11 a.m. ET, with pricing expected thereafter, the sources said.

Deutsche Bank Securities Inc. is the bookrunner on the deal, which was announced on April 23 and marketed to investors via a roadshow that began April 24 in London and then moved on to the United States in the April 28 week.

The notes (B3/B+/) will be sold under Rule 144A and Regulation S and come with three years of call protection.

Consolidated Minerals - a supplier of manganese ore and other steel-making commodities based in St. Helier on the British crown dependency of Jersey in the Channel Islands and with operations in Australia and Ghana - plans to use the proceeds from the bond offering to redeem its $405 million of outstanding 8 7/8% senior secured notes due 2016 that the company sold in April of 2011. It also plans to repay a portion of its shareholder loans and to use some proceeds for general corporate purposes.

Paul A. Harris contributed to this report

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