New Issue: Cincinnati Bell prices upsized $200 million tap of 7% notes due 2024 at 105

By Paul A. Harris

Portland, Ore., Dec. 15 – Cincinnati Bell Inc. priced an upsized $200 million add-on to its 7% senior notes due July 15, 2024 (B3/B) at 105 to yield 5.959% on Thursday, according to an informed source.

The issue size was increased from $150 million.

The reoffer price came at the rich end of the 104.5 to 105 price talk.

Morgan Stanley & Co. LLC was the bookrunner.

The Cincinnati-based telephone company plans to use the proceeds, including those resulting from the $50 million upsizing of the deal, to repay debt under its term loan B.

Issuer:	Cincinnati Bell Inc.
Face amount:	$200 million, increased from $150 million
Proceeds:	$210 million
Maturity:	July 15, 2024
Security description:	Add-on to 7% senior notes due July 15, 2024
Bookrunner:	Morgan Stanley & Co. LLC
Coupon:	7%
Price:	105
Yield:	5.959%
Spread:	350 bps
Call:	Make-whole call at Treasuries plus 50 bps until Sept. 15, 2019, then callable at 105.25
Equity clawback:	40% at 107 until Sept. 15, 2019
Trade date:	Dec. 15
Settlement date:	Dec. 23 with accrued interest
Ratings:	Moody's: B3
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	104.5 to 105
Marketing:	Quick to market
Original issue:	$425 million priced at par on Sept. 16, 2016
Fungibility:	Rule 144A add-on notes will immediately become fungible with the original notes; Regulation S add-on notes will become fungible with original notes following a 40-day cooling period
Total issue size:	$625 million

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