Published on 11/7/2013 in the Prospect News High Yield Daily.
New Issue: Alcatel-Lucent sells $750 million seven-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Nov. 7 - Alcatel-Lucent USA Inc. priced a $750 million issue of seven-year senior notes (B3/CCC+/) at par to yield 6¾% on Thursday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 6 7/8% area.
Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the joint global coordinators.
Goldman Sachs International, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, UniCredit Bank AG, BofA Merrill Lynch International, Credit Agricole Securities (USA) Inc. and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to refinance debt and for general corporate purposes.
The prospective issuer is a telecommunications equipment company based in New York and Paris.
| Issuer: | Alcatel-Lucent USA Inc.
|
| Amount: | $750 million
|
| Maturity: | Nov. 15, 2020
|
| Securities: | Senior notes
|
| Joint global coordinators: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Goldman Sachs International, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, UniCredit Bank AG, BofA Merrill Lynch International, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc.
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 478 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2016, then callable at 103.375, 101.688, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 106.75 until Nov. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6 7/8% area
|
| Marketing: | Roadshow
|
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