Published on 12/2/2014 in the Prospect News Investment Grade Daily.
New Issue: DirecTV units sells $1.2 billion 3.95% 10-year notes at 175 bps spread
By Aleesia Forni
Virginia Beach, Dec. 2 – DirecTV Holdings LLC and DirecTV Financing Co. priced $1.2 billion of 3.95% 10-year senior notes (Baa2/BBB/BBB-) on Tuesday at 175 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.313 to yield 4.033%.
The notes sold tighter than guidance, which was in the Treasuries plus 195 bps area.
Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used to repurchase, redeem, repay at maturity or otherwise retire the company’s 3.55% senior notes due 2015 due March 15, 2015.
The notes are guaranteed by DirecTV and domestic subsidiaries of DirecTV Holdings LLC.
The digital entertainment company is based in El Segundo, Calif.
| Issuers: | DirecTV Holdings LLC, DirecTV Financing Co.
|
| Guarantors: | DirecTV, DirecTV LLC, DirecTV Customer Services Inc., DirecTV Merchandising Inc., DirecTV Enterprises LLC, LABC Productions LLC, DirecTV Home Services LLC
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2025
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Santander, Deutsche Bank Securities Inc., RBC Capital Markets LLC
|
| Co-managers: | BBVA Securities Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Lloyds Securities Inc., BofA Merrill Lynch, MUFG, Mizuho Securities USA Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd., UBS Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Coupon: | 3.95%
|
| Price: | 99.313
|
| Yield: | 4.033%
|
| Spread: | Treasuries plus 175 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Oct. 15, 2024, then callable at par
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 195 bps area
|
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