By Paul A. Harris
Portland, Ore., March 12 – Heathrow Finance plc priced an upsized £400 million issue of seven-year senior secured bullet notes (B1//BB+) at par to yield 6 5/8% on Tuesday, according to a market source.
The issue size increased from £350 million.
The yield printed at the tight end of the 6 5/8% to 6¾% yield talk, which was revised from earlier talk of 6¾% to 7%. Initial guidance was in the 7% area.
Physical bookrunners were Barclays (bill and deliver), BofA, ICBC, JPMorgan and Morgan Stanley. Passive bookrunners were Goldman Sachs, SG and Credit Agricole.
Proceeds, including the incremental proceeds resulting from the £50 million upsize, will be used for general corporate purposes.
The issuer is the holding company for London’s Heathrow airport.
| Issuer: | Heathrow Finance plc
|
| Amount: | £400 million, increased from £350 million
|
| Issue: | Senior secured notes
|
| Maturity: | March 1, 2031
|
| Physical bookrunners: | Barclays (bill and deliver), BofA, ICBC, JPMorgan and Morgan Stanley
|
| Passive bookrunners: | Goldman Sachs, SG and Credit Agricole
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 282 bps
|
| Call protection: | Make-whole at Gilts plus 50 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | March 12
|
| Settlement date: | March 19
|
| Ratings: | Moody’s: B1
|
| Fitch: BB+
|
| Distribution: | Regulation S only
|
| Price talk: | 6 5/8% to 6¾%, revised from 6¾% to 7%
|
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