Alltel postpones eight-year senior cash-pay note offer due to market conditions

By Paul A. Harris

St. Louis, Nov. 15 - Alltel Communications and Alltel Communications Finance, Inc. postponed the sale of a portion of their leveraged buyout-related cash-pay notes due to market conditions on Thursday, according to market sources.

A portfolio manager from a high-yield mutual fund told Prospect News that lead bookrunner Citigroup had built an order book sufficient to place $1 billion of the notes but elected not to do so because of apprehensions that the deal would not trade well.

Earlier on Thursday price talk circulated, having the notes pricing at a to-be-determined discount to yield 11%.

Goldman Sachs, Barclays and RBS Securities were also in the deal.

The bonds were part of the overall $7.7 billion of Rule 144A and Regulation S bond and/or bridge debt financing in connection with the merger of Alltel and Atlantis Merger Sub, Inc. on Thursday.

The financing also includes up to $2.5 billion of senior unsecured payment-in-kind debt.

Atlantis Merger Sub and its parent company, Atlantis Holdings LLC, are affiliates of TPG Partners V, LP and GS Capital Partners VI Fund, LP.

Alltel is a Little Rock, Ark., provider of wireless voice and data communications services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.