By Andrea Heisinger
New York, Sept. 14 - DirecTV Holdings and DirecTV Financing priced a combined $2 billion of split-rated notes (Ba2/BBB-/BBB-) on Monday in two tranches, an informed source said.
A $1 billion tranche of 4.75% five-year notes priced at 99.729 to yield 4.811%, or Treasuries plus 245 basis points.
A $1 billion tranche of 5.875% 10-year notes priced at 99.259 to yield 5.974%, or Treasuries plus 255 bps.
Both tranches have a make-whole call at Treasuries plus 40 bps.
Price talk for both tranches was initially in the "high 2[00]s," the source said. It was later brought down to the 262.5 bps area for the five-year notes, he said, and priced tight.
Guidance for the 10-year tranche was in the 275 bps area, with the notes pricing tighter than that margin.
There was about $11 billion in interest for the sale, he said, adding that it "definitely went well."
The notes were sold via Rule 144A and Regulation S.
Bookrunners were J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Credit Suisse Securities.
Proceeds are going for general corporate purposes, which may include the repurchase of bonds due 2013.
The broadcast satellite service provider is based in El Segundo, Calif.
| Issuer: | DirectTV Holdings, DirectTV Financing
|
| Issue: | Notes
|
| Total amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 22
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Initial talk: | High 200 bps, both tranches
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2014
|
| Coupon: | 4.75%
|
| Price: | 99.729
|
| Yield: | 4.811%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 262.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2019
|
| Coupon: | 5.875%
|
| Price: | 99.259
|
| Yield: | 5.974%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 275 bps area
|
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