By Abigail W. Adams
Portland, Me., March 3 – Cable One Inc. priced an aggregate of $800 million of convertible notes in five- and seven-year tranches after the market close on Tuesday, according to a company news release.
The deal consists of an upsized $500 million tranche of five-year notes, which priced at par with a coupon of 0% and an initial conversion premium of 25%.
Pricing came in line with talk for a fixed coupon of 0% and at the cheap end of talk for an initial conversion premium of 25% to 30%, according to a market source.
The deal also includes an upsized $300 million tranche of seven-year notes, which priced at par with a coupon of 1.125% and an initial conversion premium of 25%.
Pricing came toward the cheap end of talk for a coupon of 0.75% to 1.25% and at the cheap end of talk for an initial conversion premium of 25% to 30%.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Wells Fargo Securities LLC were joint bookrunners for the Rule 144A offering.
The five-year notes carry an upsized greenshoe of $75 million. The initial size of the tranche was $400 million with a greenshoe of $60 million.
The seven-year notes carry an upsized greenshoe of $45 million. The initial size of the tranche was $200 million with a greenshoe of $30 million.
The five-year notes are non-callable until March 20, 2024 and then subject to a 130% hurdle.
The seven-year notes are non-callable until Dec. 15, 2027 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash, shares or a combination of both at the company’s option.
There is dividend protection above $2.50 a quarter.
Proceeds will be used for general corporate purposes, including to finance a portion of the company’s acquisition of the equity interests in Hargray Acquisition Holdings LLC.
Cable One is a Phoenix-based broadband communications provider.
| Issuer: | Cable One Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $800 million
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, BofA Securities Inc., and Wells Fargo Securities LLC
|
| Pricing date: | March 2
|
| Settlement date: | March 5
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: CABO
|
| Stock price: | $1,820.83 at market close March 3
|
| Market capitalization: | $10.99 billion
|
|
|
| 2026 notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 15, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 25%
|
| Conversion price: | $2,275.83
|
| Conversion rate: | 0.4394
|
| Call options: | Non-callable until March 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Talk: | Fixed coupon of 0% and initial conversion premium of 25% to 30%
|
|
|
| 2028 notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | March 15, 2028
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: | 25%
|
| Conversion price: | $2,275.83
|
| Conversion rate: | 0.4394
|
| Call options: | Non-callable until Dec. 15, 2027 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 25% to 30%
|
|
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