Published on 8/6/2010 in the Prospect News High Yield Daily.
New Issue: Insight Communications prices $95 million add-on to 9 3/8% notes due 2018 at 105.75
By Paul A. Harris
St. Louis, Aug. 6 - Insight Communications Co., Inc. priced a $95 million add-on to its 9 3/8% senior notes due July 15, 2018 (B3/B-/) at 105.75, resulting in a yield of 8.129%, on Friday, according to an informed source.
The reoffer price came in the middle of the 105.5 to 106 price talk.
The sale generated $100.46 million of proceeds.
Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Credit Suisse Securities and Morgan Stanley & Co. Inc. were the joint bookrunners for the quick-to-market add-on.
Senior co-managers were Barclays Capital Inc., RBS Securities Inc., UBS Investment Bank and US Bancorp Investments.
Co-managers were BNY Mellon Capital Markets LLC, Credit Agricole CIB and Fifth Third Securities Inc.
Proceeds will be used to pay down the credit facility of Insight Midwest Holdings LLC, a subsidiary, and for general corporate purposes.
The original $400 million issue priced at par on June 30.
Insight Communications is a New York-based cable company that operates in Kentucky, Indiana and Ohio.
| Issuer: | Insight Communications Co., Inc.
|
| Face amount: | $95 million
|
| Proceeds: | $100,463,000 (approximate)
|
| Maturity: | July 15, 2018
|
| Securities: | Add-on to 9 3/8% senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Credit Suisse Securities, Morgan Stanley & Co. Inc.
|
| Senior co-managers: | Barclays Capital Inc., RBS Securities Inc., UBS Investment Bank, US Bancorp Investments
|
| Co-managers: | BNY Mellon Capital Markets LLC, Credit Agricole CIB, Fifth Third Securities Inc.
|
| Coupon: | 9 3/8%
|
| Price: | 105.75
|
| Yield: | 8.129%
|
| Spread: | 626 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: | 35% at 109.375 until July 15, 2013
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 11 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 105.5 to 106
|
| Marketing: | Quick to market
|
| Original issue: | $400 million priced at par on June 30, 2010
|
| Total issue size: | $495 million
|
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