Published on 9/26/2011 in the Prospect News High Yield Daily.
New Issue: DPL prices $1.25 billion of five-, 10-year senior notes
By Paul A. Harris
Portland, Ore., Sept. 26 - Dolphin Sub II, Inc., which will be merged with and into DPL Inc., priced $1.25 billion of senior bullet notes (Ba1/BB+/BB+) in a two-part quick-to-market Monday transaction, according to an informed source.
The deal included a $400 million tranche of five-year notes, which priced at par to yield 6½%, on top of where the deal was launched. Price talk was 6½% to 6 5/8%.
In addition the Dayton, Ohio-based electric utility priced an $800 million tranche of 10-year notes at par to yield 7¼%, again on top of where the deal was launched. Price talk was 7¼% to 7 3/8%.
Barclays Capital Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the active bookrunners.
Proceeds will be used to partially finance the acquisition of DPL, the parent of Dayton Power & Light Co., by AES Corp.
| Issuer: | Dolphin Sub II, Inc. to be merged with and into DPL Inc.
|
| Amount: | $1.25 billion
|
| Securities: | Senior notes
|
| Active bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Co-managers: | Scotia Capital, CIBC World Markets, BNP Paribas, Mitsubishi UFJ Securities
|
| Trade date: | Sept. 26
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | Oct. 15, 2016
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Call protection: | Non-callable
|
| Launch and price talk: | Launched at 6½%, price talk was 6½% to 6 5/8%
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | Oct. 15, 2021
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Call protection: | Non-callable
|
| Launch and price talk: | Launched at 7¼%, price talk 7¼% to 7 3/8%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
