By Paul A. Harris
St. Louis, March 10 - Eschelon Operating Co. sold $84.8 million proceeds of six-year senior second secured notes (Caa1/CCC+) Wednesday at 84.813 with an 8 3/8% coupon to yield 12%, according to an informed source.
Price talk was in the area of 11¾%.
The underwriters were Jefferies & Co. and Wachovia Securities.
The offering was restructured, with the notes having initially been announced as senior unsecured notes.
The notes will be secured by a second priority lien on substantially all existing and future property and assets owned by the company and the guarantors.
Proceeds will be used to repay bank debt.
The issuer is a Minneapolis-based voice, data and internet services provider.
| Issuer: | Eschelon Operating Co.
|
| Face amount: | $100 million
|
| Proceeds: | $84.813 million
|
| Maturity: | March 15, 2010
|
| Security description: | Senior second secured notes
|
| Underwriters: | Jefferies & Co., Wachovia Securities
|
| Coupon: | 8 3/8%
|
| Price: | 84.813
|
| Yield: | 12%
|
| Call features: | On or after March 15, 2007 at 106.0, 103.0, par on or after March 15, 2009
|
| Equity clawback: | Until March 15, 2007 for 35% at 112.0
|
| Pricing date: | March 10
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 11¾% area
|
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