New Issue: Cincinnati Bell sells upsized $625 million 8¾% eight-year notes at 98.596 to yield 9%

By Paul A. Harris

St. Louis, March 10 - Cincinnati Bell Inc. priced an upsized $625 million issue of 8¾% eight-year senior subordinated notes (B2/B-/) at 98.596 to yield 9% on Wednesday, according to an informed source.

The yield printed on top of yield talk. The reoffer price came in line with discount talk of 1 to 2 points.

Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Securities Inc. and Wells Fargo Securities were joint bookrunners for the quick-to-market deal, which was upsized from $400 million.

Proceeds, together with cash on hand, will be used to redeem $375 million of the outstanding 8 3/8% senior subordinated notes due 2014, including accrued interest and the related call premium.

The issuer is a Cincinnati-based communications company.

Issuer:	Cincinnati Bell Inc.
Amount:	$625 million, increased from $400 million
Maturity:	March 15, 2018
Securities:	Senior subordinated notes
Bookrunners:	Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Securities Inc., Wells Fargo Securities
Coupon:	8¾%
Price:	98.596
Yield:	9%
Spread:	565 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until March 15, 2014, then callable at a premium
Equity clawback:	35% at 108.75 until March 15, 2013
Trade date:	March 10
Settlement date:	March 15
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	SEC registered
Price talk:	9% area with 1-2 points OID

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