Published on 6/30/2010 in the Prospect News High Yield Daily.
New Issue: Insight Communications prices $400 million eight-year notes at par to yield 9 3/8%
By Paul A. Harris
St. Louis, June 30 - Insight Communications Co., Inc. priced a $400 million issue of eight-year senior notes (B3/B-) at par to yield 9 3/8%, on Wednesday, according to an informed source.
The yield printed in the middle of the 9¼% to 9½% price talk.
Bank of America Securities Merrill Lynch, J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. Inc. were the joint bookrunners.
Proceeds will be used to fund a $300 million distribution to holders of the company's capital stock, with any remaining proceeds to repay its revolver and term loan A and to be used for general corporate purposes.
Insight Communications is a New York-based cable company that operates in Kentucky, Indiana and Ohio.
| Issue: | Insight Communications Co., Inc.
|
| Amount: | $400 million
|
| Maturity: | July 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Securities Merrill Lynch, J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Inc.
|
| Senior co-managers: | Barclays Capital Inc., RBS Securities Inc., UBS Securities LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc.,
|
| Fifth Third Securities, Inc.
|
| Coupon: | 9 3/8%
|
| Price: | Par
|
| Yield; | 9 3/8%
|
| Spread: | 684 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2013, then callable at 107.031, 104.688, 102.344, par on and after July 15, 2016
|
| Equity clawback: | For 35% at 109.375 until July 15, 2013
|
| Trade date: | June 30
|
| Settlement date: | July 7
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Brief roadshow
|
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