TimkenSteel Prices Offering of Convertible Senior Notes
OREANDA-NEWS. TimkenSteel Corp. today announced the pricing of its previously announced registered public offering of $75.0 million aggregate principal amount (or up to an aggregate of $86.25 million aggregate principal amount if the underwriters of the notes offering exercise their over-allotment option in full) of its 6.00% Convertible Senior Notes due 2021.
The company expects to close the notes offering on May 31, 2016, subject to satisfaction of customary closing conditions.
The notes will be TimkenSteel's senior unsecured obligations and will bear interest at a rate of 6.00% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016. The notes will be convertible at the option of holders in certain circumstances and during certain periods into common shares of the company, cash, or a combination thereof, at the company's election. The conversion rate will initially be 79.5165 common shares of the company per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $12.58 per common share of the company), subject to customary adjustments. The notes will mature on June 1, 2021, unless earlier repurchased or converted in accordance with their terms prior to that date. TimkenSteel will not have the right to redeem the notes prior to maturity.
The company intends to use the net proceeds from the notes offering to repay a portion of the amounts outstanding under its asset-based revolving credit facility.
J.P. Morgan Securities LLC has acted as sole bookrunner for the notes offering. Deutsche Bank Securities Inc. is acting as co-manager for the notes offering.