By Paul A. Harris
Portland, Ore., March 11 – Entercom Communications Corp. priced an upsized $540 million issue of eight-year senior secured second-lien notes (B3/B-) at par to yield 6¾% on Thursday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 6¾% to 7% yield talk. Initial guidance was in the low 7% area.
The deal was heard to be three-times oversubscribed, a trader said.
Timing was accelerated after originally being announced as Friday business.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC.
The Philadelphia-based audio and entertainment company plans to use the proceeds to refinance its 7¼% senior notes due 2024, with the remaining proceeds to be used to pay down its senior secured credit facilities.
| Issuer: | Entercom Communications Corp.
|
| Amount: | $540 million, increased from $500 million
|
| Maturity: | March 31, 2029
|
| Securities: | Senior secured second-lien notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Deutsche Bank Securities Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 556 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until March 31, 2024, then callable at 103.375
|
| Equity clawback: | 40% at 106.75 until March 31, 2024
|
| Trade date: | March 11
|
| Settlement date: | March 25
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Drive-by
|
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