New Issue: Sheffield Steel sells $80 million seven-year notes to yield 11 3/8%

By Paul A. Harris

St. Louis, Aug. 5 - Sheffield Steel Corp. sold $80 million of seven-year senior secured notes (B3/B-) at par on Thursday to yield 11 3/8%, according to an informed source.

Price talk was 11% to 11½%.

Jefferies & Co. ran the books for the Rule 144A/Regulation S issue.

Proceeds will be used to repay debt.

The issuer is a Sands Springs, Okla., mini-mill steel producer.

Issuer:	Sheffield Steel Corp.
Amount:	$80 million
Maturity:	Aug. 15, 2011
Security description:	Senior secured notes
Bookrunner:	Jefferies & Co.
Coupon:	11 3/8%
Price:	Par
Yield:	11 3/8%
Spread:	733 basis points
Call features:	Make-whole at Treasuries plus 50 basis points prior to Aug. 15, 2008, then at 105.688, 102.844, par on or after Aug. 15, 2010
Equity clawback	Until Aug. 15, 2007 for 35% at 111.375
Pricing date:	Aug. 5
Settlement date:	Aug. 12
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	11%-11½%

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