Allegheny Technologies To Issue $650 Mln In Debt

PITTSBURGH (AP) — Allegheny Technologies Inc. said Tuesday it plans to issue $650 million in new debt to retire old debt and make pension plan contributions.

The company said it would offer $300 million in senior notes due in 2019, with interest rates to be determined when the notes are priced.

It will also offer $350 million in convertible notes due in 2014. The company said interest rate, conversion rate, and other terms of the notes will be announced when pricing is set.

Allegheny said it expected to grant underwriters for the convertibles an option to buy up to $52.5 million in notes to cover over-allotments.

The company has a stock market valuation of about $3.5 billion.

Neither offering will be dependent on completing the other, Allegheny said.

Allegheny said it plans to use proceeds from the senior notes to retire $300 million in outstanding 8.375 percent notes due in 2011.

It said it would use proceeds from the convertibles for other obligations, including voluntary contributions to its defined benefit pension trust and to trusts used to fund retiree medical benefits.

Allegheny shares rose $1.64, or 4.8 percent, to $35.81 before the announcement. In extended trading, they fell $1.73, or 4.8 percent, to $34.08.