Commercial Metals Co. announces public offering of $100 million notes due 2005.DALLAS--(BUSINESS WIRE)--July 26, 1995--Commercial Metals Company (NYSE NYSE See: New York Stock Exchange : CMC) announced today the sale of $100 million of investment grade, unsecured 7.20% Notes due 2005. Goldman, Sachs & Co., Lehman Brothers and Morgan Stanley & Co., Inc. were underwriters. The offering was priced at 99.686% to yield 7.244% to the investors. The Company will receive $99.036 million in net proceeds from the offering which will be used to refinance approximately $60 million of long-term debt, reduce short-term borrowings and for general corporate purposes. The notes are rated BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + by both Standard & Poor's and Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. and Baa2 by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . Stanley A. Rabin, President and Chief Executive Officer, said, "This is the Company's initial entry into the long-term public debt market. The notes were oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. and priced at 80 basis points over the 10 year Treasury note. Additionally, we hedged previously the interest rate on favorable terms yielding an effective borrowing rate of 7.04%." This $100 million note issue is part of a $150 million shelf registration. The Company may issue the remaining $50 million of securities in the form of medium term notes over the next two years. Copies of the offering prospectus may be obtained from Goldman, Sachs & Co., 85 Broad Street, New York, New York 10004 (212) 902-6685. Commercial Metals Company Commercial Metals Company NYSE: CMC is an United States based steel and metal manufacturer founded in 1915. It owns four steel minimills in Texas, Alabama, South Carolina and Arkansas, one copper minimill (Howell Metal Company) in Virginia, fabricators, and recyclers in the and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of over ninety locations including steel minimills, steel fabrication plants, a copper tube mill, recycling facilities and trading offices in the United States and trading and representative offices in strategic overseas markets. CONTACT: Commercial Metals Co., Dallas Bob Davis, 214/689-4354 |
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