By Paul A. Harris
Portland, Ore., Jan. 16 - CBS Outdoor Americas Inc. priced $800 million of senior notes (B1/BB-/) in two $400 million tranches on Thursday, according to a market source.
The notes were issued through CBS Outdoor Americas Capital LLC and CBS Outdoor Capital Corp.
A tranche of eight-year notes priced at par to yield 5¼%, at the tight end of yield talk in the 5 3/8% area. And a tranche of 10-year notes priced at par to yield 5 5/8%, at the tight end of yield talk in the 5¾% area.
The eight-year notes came into the market with initial guidance in the high 5% range, with guidance tightening, during marketing to 5¼% to 5 3/8%.
The 10-year notes came with initial guidance in the low 6% range, which narrowed to 5 5/8% to 5¾% during marketing.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the active bookrunners.
BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were joint bookrunners.
Proceeds will be used to make a payment to CBS Corp. for the contribution of the entities comprising the Outdoor Americas operating segment, for general corporate purposes and for ongoing cash needs.
The issuer is a New York-based lessor of advertising space on out-of-home advertising structures and sites and a wholly owned subsidiary of CBS Corp.
| Issuers: | CBS Outdoor Americas Capital LLC and CBS Outdoor Capital Corp.
|
| Amount: | $800 million
|
| Securities: | Senior notes
|
| Active bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets, Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 268 bps
|
| Call protection: | Three years
|
| Price talk: | 5 3/8% area
|
|
|
| 10-year notes
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| Amount: | $400 million
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Call protection: | Five years
|
| Price talk: | 5¾% area
|
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