Chile's VTR Finance drops eight-year tranche, talks $1.4 billion 10-year notes to yield 7%-7¼%

By Paul A. Harris

Portland, Ore., Jan. 16 - VTR Finance BV restructured its $1.4 billion offering of senior secured notes (expected B1/B+) on Thursday, according to market sources.

The entire amount will now come in a tranche of 10-year notes, which has been upsized from $800 million, and is talked to yield 7% to 7¼%.

The Santiago, Chile-based cable and internet company withdrew a proposed $600 million tranche of eight-year notes, which were talked earlier on Thursday to yield in the 6¾% area.

At that time the 10-year tranche had been talked to yield 50 basis points behind the eight-year tranche.

The Rule 144A and Regulation S for life deal is set to price on Friday morning.

J.P. Morgan Securities (USA) LLC, BNP Paribas, Goldman Sachs & Co. and Morgan Stanley & Co. are the joint bookrunners.

Both tranches feature special call provisions that allow the issuer to redeem up to 10% of the notes annually at 103 during the non-call periods.

Proceeds will be used to fund the split off of VTR GlobalCom, SpA and VTR Wireless, SpA from Liberty Global plc and for general corporate purposes.

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