Published on 3/13/2018 in the Prospect News High Yield Daily.
New Issue: U.S. Steel prices $650 million eight-year notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., March 13 – United States Steel Corp. priced a $650 million issue of eight-year senior notes (B2) at par to yield 6¼% in a quick-to-market Tuesday trade, market sources said.
The yield printed at the wide end of the 6% to 6¼% yield talk and in the middle of the 6 1/8% to 6 3/8% initial guidance.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
The Pittsburgh-based steel producer plans to use the proceeds, together with cash on hand, to tender for, or redeem all of, its 8 3/8% senior secured notes due 2021.
Issuer: | United States Steel Corp.
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Amount: | $650 million
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Maturity: | March 15, 2026
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Securities: | Senior notes
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Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
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Coupon: | 6¼%
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Price: | Par
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Yield: | 6¼%
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Call protection: | Three years
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Trade date: | March 13
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Rating: | Moody's: B2
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Distribution: | SEC registered
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Price talk: | 6% to 6¼%
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Marketing: | Quick to market
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