Published on 6/10/2004 in the Prospect News High Yield Daily.
New Issue: US Unwired upsizes to $360 million, sells fixed at 10 1/8%, floater at Libor plus 425 bps
By Paul A. Harris
St. Louis, June 10 - US Unwired Inc. upsized its two-tranche high-yield notes offering to $360 million from $285 million and priced both issues on Thursday, according to a syndicate source.
The Lake Charles, La.-based Sprint PCS affiliate sold $125 million of six-year first-lien floating-rate notes (B2/CCC+) at par. The coupon will float at three-month Libor plus 425 basis points. Price talk was three-month Libor plus 425 to 450 basis points.
The company also priced an upsized $235 million of eight-year second-lien fixed-rate notes (Caa1/CCC-) at 99.326 with a 10% coupon to yield 10 1/8%. Price talk was 10% to 10¼%. The tranche was upsized from $160 million.
Lehman Brothers and Banc of America Securities were joint bookrunners for the Rule 144A issue. Bear Stearns & Co. was the co-manager.
Proceeds will be used to repay bank debt and fund the tender/redemption of the company's 13 3/8% senior subordinated discount notes.
| Issuer: | US Unwired Inc.
|
| Amount: | $360 million (increased from $285 million)
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| Bookrunners: | Lehman Brothers, Banc of America Securities
|
| Co-manager: | Bear Stearns & Co.
|
| Pricing date: | June 10
|
| Settlement date: | June 16
|
|
|
| Floating-rate tranche:
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| Amount: | $125 million
|
| Security description: | First-lien floating-rate notes
|
| Maturity: | June 15, 2010
|
| Coupon: | Three-month Libor plus 425 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 425 basis points
|
| Call features: | Callable after June 15, 2006 at 102, 101, par on or after June 15, 2008
|
| Ratings: | Moody's: B2
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| Standard & Poor's: CCC+
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| Price talk: | Three-month Libor plus 425-450 basis points
|
|
|
| Fixed-rate tranche
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| Amount: | $235 million (increased from $160 million)
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| Maturity: | June 15, 2012
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| Security description: | Second-lien fixed-rate notes
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| Coupon: | 10%
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| Price: | 99.326
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| Yield: | 10 1/8%
|
| Spread: | 546 basis points
|
| Call features: | Callable after June 15, 2008 at 105.0, 102.50, par on or after June 15, 2010
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| Equity clawback: | Until June 15, 2007 for 35% at 110.0
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| Ratings: | Moody's: Caa1
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| Standard & Poor's: CCC-
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| Price talk: | 10%-10¼%
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