By Paul A. Harris
St. Louis, Nov. 19 - Alltel Communications Inc. and Alltel Communications Finance, Inc., priced a $1 billion issue of 10 3/8% 10-year senior payment-in-kind toggle notes (Caa1/B-) late last Friday evening at 91.50, resulting in a yield to maturity of 11.84%, according to market sources.
Citigroup, Goldman Sachs & Co., Barclays Capital and RBS Greenwich Capital led the deal.
The toggle notes priced one day after Alltel postponed the sale of a portion of its cash-pay notes due to market conditions.
The toggle notes are 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.
The $1 billion tranche of toggle notes that priced last Friday leaves another $1.5 billion of PIK debt remaining on underwriters' balance sheets.
In addition, $5.2 billion of cash-pay debt remains on underwriters' balance sheets trailing last week's postponed offering of cash-pay notes.
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.
| Issuer: | Alltel Communications, Inc. and Alltel Communications Finance, Inc.
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2017
|
| Security description: | Senior PIK toggle notes
|
| Bookrunners | Citigroup, Goldman Sachs & Co., RBS Greenwich Capital, Barclays Capital
|
| Cash coupon: | 10 3/8%
|
| PIK coupon: | 11 1/8%
|
| Price: | 91.50
|
| Yield: | 11.84%
|
| Spread: | 768 bps
|
| Call features: | Callable after Nov. 1, 2012 at 105.188, 103.458, 101.729, par on and after Nov. 1 2015
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A
|
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