PALM BEACH GARDENS, Fla., Jan. 11, 2011 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) today announced that its wholly-owned subsidiary, Dycom Investments, Inc., has priced its offering of $187.5 million in aggregate principal amount of 7.125% Senior Subordinated Notes due 2021 (the "Notes"), in an offering to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended. The issue price is 100% of the principal amount of the Notes. The aggregate principal amount of Notes was increased from the $175 million which had been previously announced on January 6, 2011. The closing of the sale of the Notes, which is subject to customary conditions, is expected to occur on January 21, 2011.
The Notes will be guaranteed on an unsecured senior subordinated basis by Dycom Industries, Inc. and certain of its subsidiaries. The net proceeds from the offering, which are estimated to be approximately $183 million after discounts and expenses, will be used to repurchase any and all of its outstanding 8.125% Senior Subordinated Notes due 2015 (the "2015 Notes") pursuant to the cash tender offer and consent solicitation commenced by Dycom Investments, Inc. on January 6, 2011 (and to redeem any outstanding 2015 Notes not so purchased). Dycom Investments, Inc. intends to use any remaining net proceeds, after the repurchase of the 2015 Notes and associated fees and expenses, for working capital and other general corporate purposes.
The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful. Any offers of the notes will be made only by means of an offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.