Published on 11/18/2019 in the Prospect News High Yield Daily.
New Issue: iHeartCommunications prices $500 million eight-year notes at par to yield 4¾%
By Paul A. Harris
Portland, Ore., Nov. 18 – iHeartCommunications, Inc. priced a $500 million issue of eight-year senior secured notes (B1/BB-) at par to yield 4¾% in a quick-to-market Monday trade, according to market sources.
The yield printed at the tight end of yield talk in the 4 7/8% area and tighter than early guidance in the 5% area.
Morgan Stanley & Co. LLC was the bookrunner.
The San Antonio-based mass media company plans to use the proceeds, together with cash on hand, to prepay $500 million of term loan debt at par.
| Issuer: | iHeartCommunications, Inc.
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2028
|
| Securities; | Senior secured notes
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 300 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2023, then callable at 102.375
|
| Equity clawback: | 40% at 104.75 until Nov. 15, 2022
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 4 7/8% area
|
| Marketing: | Quick to market
|
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