By Andrea Heisinger
New York, Sept. 29 - Gannett Co., Inc. priced an upsized $500 million of split-rated senior notes (Baa3/BB/) on Tuesday in two tranches, a market source said.
The deal was done off the high-yield syndicate desk. The size was initially $400 million, with each tranche increased by $50 million.
A $250 million tranche of 8.75% five-year notes priced at 98.465 to yield 9.125%, or Treasuries plus 678 basis points. The notes were talked in the 9.25% yield area. This tranche is non-callable.
The $250 million of 9.375% eight-year notes priced at 98.582 to yield 9.625, or 647 bps over Treasuries. Price guidance was 50 bps on top of the five-year note. The tranche is non-callable until Nov. 15, 2013.
The notes feature a change-of-control put of 101%. The deal was done via Rule 144A and Regulation S.
Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Barclays Capital Inc. and Citigroup Global Markets Inc. were joint bookrunners.
Co-managers were Lloyds, Mitsubishi UFJ Securities, Mizuho Securities USA Inc. and SunTrust Robinson Humphrey Inc.
Proceeds are being used to repay borrowings under a revolving credit facility and term loan.
The media holding company is based in McLean, Va.
| Issuer: | Gannett Co., Inc.
|
| Issue: | Senior notes
|
| Total amount: | $500 million, upsized from $400 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc.
|
| Co-managers: | Lloyds, Mitsubishi UFJ Securities, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc.
|
| Distribution: | Rule 144A/Regulation S
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 29
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 15, 2014
|
| Coupon: | 8.75%
|
| Price: | 98.465
|
| Yield: | 9.125%
|
| Spread: | Treasuries plus 678 bps
|
| Call: | Non-callable
|
| Price talk: | 9.25% yield area
|
|
|
| Eight-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 15, 2017
|
| Coupon: | 9.375%
|
| Price: | 98.582
|
| Yield: | 9.625%
|
| Spread: | Treasuries plus 647 bps
|
| Call: | Non-callable until Nov. 15, 2013
|
| Price talk: | 50 bps on top of five-year notes
|
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