By Paul A. Harris
St. Louis, Dec. 14 - IWO Escrow Co., in conjunction with IWO Holdings (Independent Wireless One Corp.), priced two tranches of high-yield notes on Tuesday, according to a market source.
The company sold $150 million of seven-year senior secured floating-rate notes (B3/CCC+) at par to yield three month Libor plus 375 basis points, inside of the Libor plus 400 basis points to Libor plus 425 basis points price talk.
The company also sold $140 million face amount of 10-year senior discount notes (Caa2/CCC-) at 59.086 to yield 10¾%, also inside of the 11% to 11¼% price talk. Proceeds were $82.72 million.
Bear Stearns & Co., Lehman Brothers and Merrill Lynch & Co. ran the books for the Rule 144A with registration rights issue.
Proceeds will be used to repay the existing credit facility, as well as restructuring fees and expenses and for general corporate purposes as part of the company's Chapter 11 restructuring.
The issuer is a Lake Charles, La.-based Sprint PCS affiliate.
| Issuer: | IWO Escrow Co./IWO Holdings (Independent Wireless One Corp.)
|
| Bookrunners: | Bear Stearns & Co., Lehman Brothers, Merrill Lynch & Co.
|
| Trade date: | Dec. 14
|
| Settlement date: | Jan. 6
|
|
|
| Floating-rate tranche
|
| Amount: | $150 million
|
| Maturity: | Jan. 15, 2012
|
| Security description: | Senior secured floating-rate notes
|
| Coupon: | Three month Libor plus 375 basis points
|
| Price: | Par
|
| Yield: | Three month Libor plus 375 basis points
|
| Call features: | Callable after Jan. 15, 2007 at 102, 101, par
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | Libor plus 400-425 basis points
|
|
|
| Discount note tranche
|
| Face amount: | $140 million
|
| Proceeds: | $82.72 million (approximate)
|
| Maturity: | Jan. 15, 2015
|
| Security description: | Senior discount notes
|
| Coupon: | 0% for five years
|
| Price: | 59.086
|
| Yield: | 10¾%
|
| Spread: | 657 basis points
|
| Call: | After Jan. 15, 2010 at 105.375
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC-
|
| Price talk: | 11%-11¼%
|
|
|
© 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.
