By Paul A. Harris
St. Louis, Nov. 19 - Eschelon Operating Co. priced a $65 million add-on to its 8 3/8% senior second secured notes due March 15, 2010 (Caa1/CCC+) at 79.0 on Friday, resulting in a 14.132% yield to worst, according to an informed source.
Price talk was 80.0 to 80.25.
The sale generated $51.35 million of proceeds.
Jefferies & Co. ran the books for the Rule 144A/Regulation S add-on.
Proceeds will be used to fund the acquisition of Advanced Telecom, as well as to repurchase convertible preferred shares and for general corporate purposes.
The original $100 million issue priced at 84.813 on March 10 to yield 12%.
Eschelon Operating is a Minneapolis-based voice, data and internet services provider.
Issuer Eschelon Operating Co.
| Face amount: | $65 million
|
| Proceeds: | $51.35 million
|
| Maturity: | March 15, 2010
|
| Security description: | Add-on to the 8 3/8% senior second secured notes due 2010
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 8 3/8%
|
| Price: | 79.0
|
| Yield to worst: | 14.132%
|
| Call features: | Callable on or after March 15, 2007 at 106.0, 103.0, par on or after March 15, 2009
|
| Equity clawback: | 35% at 112.0% of accreted value prior to March 15, 2007
|
| Pricing date: | Nov. 19
|
| Settlement date | Nov. 29 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 80.0-80.25
|
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