By Paul Deckelman
New York, July 22 - Entravision Communications Corp. priced an upsized $400 million offering of seven-year first-lien senior secured notes (B1/B) on Thursday to yield 9%, high-yield syndicate sources said. The notes, carrying a coupon of 8¾%, priced at 98.722. They priced at the tight end of pre-deal market price talk envisioning a yield between 9% and 9¼%.
The issue was upsized from the $385 million that the company initially announced on Monday.
The bonds will be non-callable in whole for the first three years after issue, although up to 10% of the issue may be called annually at a price of 103 during that non-call period.
Citigroup, Wells Fargo Securities and UBS Investment Bank were the joint bookrunners on the Rule 144A/Regulation S deal, which was being sold with registration rights. Moelis Capital Partners was the co-manager.
Entravision, a Santa Monica, Calif.-based Spanish-language media company that owns radio and television stations in many large markets, announced on Monday that it would do the bond deal and enter into a new revolving credit facility for up to $50 million. The company said that the new notes and the credit facility would be secured on a first-priority basis by the assets of Entravision and its guarantors - all of its existing and future wholly owned domestic subsidiaries - subject to certain exceptions, certain permitted liens and the provisions of an intercreditor agreement relating to distributions of proceeds.
The net proceeds from the offering will be used to fully repay outstanding debt under its existing syndicated bank credit facility as well as for general corporate purposes.
| Issuer: | Entravision Communications Corp.
|
| Face Amount: | $400 million (upsized from $385 million)
|
| Maturity: | Aug. 1, 2017
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| Securities: | Senior secured first-lien notes
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| Bookrunners: | Citigroup Global Markets, Inc., Wells Fargo Securities, LLC, UBS Investment Bank
|
| Co-manager: | Moelis Capital Partners
|
| Coupon: | 8¾%
|
| Price: | 98.722
|
| Yield: | 9%
|
| Spread: | 664 basis points versus 2.5% Treasury notes due June 2017
|
| Call features: | Non-callable until Aug. 1, 2013, then at 106.563, callable Aug. 1, 2014 at 104.375, callable Aug. 1, 2015 at 102.188 and finally callable at par on or after Aug. 1, 2016; optional redemption of up to 10% of the aggregate principal amount at 103 during any 12-month period during first three years
|
| Equity clawback: | For up to 35% of the issue at 108.75, prior to Aug. 1, 2013
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| Trade date: | July 22
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| Settlement date: | July 27
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| Ratings: | Moody's: B1
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| S&P: B
|
| Distribution | 144A/Regulation S with registration rights
|
| Price talk: | 9% to 9¼%
|
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