Specialty metals manufacturer company
Allegheny Technologies Inc.
) announced the pricing of public offering of its senior notes.
The company will issue and sell $500 million aggregate principal
amount of 5.875% Senior Notes due 2023.
Allegheny will be paying semi-annual interest in arrears at a
rate of 5.875% per year on the Senior Notes. The notes, if not
redeemed or repurchased earlier, will mature on Aug 15, 2023. The
offering is being made following the effective shelf registration
statement filed by the company with the Securities and Exchange
Commission (the SEC).
Allegheny plans to utilize the proceeds from the offering to
fund the general corporate purposes, which may include
repurchases, repayment or refinancing of debt, capital
expenditures, additions to working capital, and the financing of
future acquisitions or strategic combinations.
The joint book-running managers for the offering are Merrill
Lynch, Pierce, Fenner & Smith Incorporated, a wholly-owned
Bank of America Corporation
); and J.P. Morgan Securities LLC, the non-bank subsidiary of
JPMorgan Chase & Co.
Earlier, in Jan 2011, Allegheny had announced the pricing of
another set of senior notes due 2021. The offering comprised $500
million aggregate principal amount of 5.950% senior notes due
2021. Allegheny paid semi-annual interest in arrears at a rate of
5.950% per year on the senior notes. The notes, if not redeemed
or repurchased earlier, will mature on Jan 15, 2021.
Allegheny intended to utilize the net proceeds from the
issuance of senior notes to fund the cash portion of the merger
consideration for the acquisition of Ladish Co., Inc. (Ladish)
and pay related fees and expenses. The remaining net proceeds
were to be used for general corporate purposes.
J.P. Morgan, Citi,
) and BofA Merrill Lynch acted as the joint book-running managers
for the Jan 2011 offering.
The public offering of senior notes is expected to enable
Allegheny to attain financial flexibility and position the
company well to pursue investment opportunities and acquisitions.
This would facilitate the company's top-line improvement in the
Allegheny, which holds a Zacks Rank #5 (Sell), is set to
announce its second- quarter 2013 results on Jul 24
ALLEGHENY TECH (ATI): Free Stock Analysis
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