Published on 3/4/2021 in the Prospect News High Yield Daily.
New Issue: Consolidated Communications prices $400 million 7.5-year notes at par to yield 5%
By Paul A. Harris
Portland, Ore., March 4 – Consolidated Communications Inc. priced a $400 million issue of 7.5-year senior secured notes (B2/B+) at par to yield 5% on Thursday, according to market sources.
The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low 5% area.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
The Mattoon, Ill.-based broadband provider plans to use the proceeds to pay down its term loans.
| Issuer: | Consolidated Communications Inc.
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| Amount: | $400 million
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| Maturity: | Oct. 1, 2028
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| Securities: | Senior secured notes
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| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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| Joint bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 5%
|
| Price: | Par
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| Yield: | 5%
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| Spread: | 379 bps
|
| First call: | Oct. 1, 2023 at 103.75
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| Equity clawback: | 40% at 105 until Oct. 1, 2023
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| Trade date: | March 4
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| Settlement date: | March 18
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| Ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5% to 5¼%
|
| Marketing: | Roadshow
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