By Stephanie N. Rotondo
Portland, Ore., May 9 - United States Cellular Corp. priced a $300 million offering of 6.95% $25-par senior notes due 2060, according to a market source.
There is a $42 million over-allotment option.
Price talk was originally 7% to 7.125% but was later revised to 6.95% to 7%. The market had also been expecting just $100 million, or 4 million notes, would be issued.
The notes (Baa2/BBB-/BBB) can be redeemed after May 15, 2016 at par plus accrued interest.
Interest is payable quarterly beginning June 25.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. RBC Capital Markets LLC, BNY Mellon Capital Markets LLC, Comerica Securities, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. are the co-managers.
Proceeds will be used to redeem some or all of the company's outstanding 7.5% senior notes due 2034 and for general corporate purposes.
Settlement is expected by May 16.
The company intends to list the notes on the New York Stock Exchange within 30 days of issuance.
U.S. Cellular is a Chicago-based telecommunications provider.
| Issuer: | United States Cellular Corp.
|
| Securities: | Senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $42 million
|
| Maturity: | May 15, 2060
|
| Coupon: | 6.95%, payable quarterly
|
| Price: | Par of $25
|
| Call option: | Starting on May 15, 2016
|
| Joint bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | RBC Capital Markets LLC, BNY Mellon Capital Markets LLC, Comerica Securities, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Pricing: | May 9
|
| Settlement: | May 16
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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