By Paul A. Harris
Portland, Ore., Feb. 10 – Block Communications, Inc. priced a $300 million issue of eight-year senior notes (B1/B+) at par to yield 4 7/8% in a quick-to-market Monday trade, according to market sources.
The yield printed at the tight end of yield talk in the 5% area. Initial talk was in the low 5% area.
The deal was a blowout, according to a bond trader, who added that just past mid-afternoon on Monday the order book was heard to contain $1.5 billion of orders.
The deal was also driven into the market by $200 million of reverse inquiry, the trader added.
BofA Securities Inc. was the left bookrunner, and J.P. Morgan Securities LLC was a joint bookrunner.
The Toledo, Ohio-based diversified media company plans to use the proceeds, together with a new term loan B and cash on hand, to redeem all of its existing 6 7/8% notes due 2025.
| Issuer: | Block Communications, Inc.
|
| Amount: | $300 million
|
| Maturity: | March 1, 2028
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunner : | J.P. Morgan Securities LLC
|
| Co-managers: | Citizens Capital Markets Inc., Comerica Securities Inc., Goldman Sachs & Co. LLC, M&T and PNC Capital Markets LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 337 bps
|
| Call protection: | Three years
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% area
|
| Marketing: | Drive-by
|
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