Published on 5/24/2017 in the Prospect News High Yield Daily.
New Issue: Heathrow prices upsized £275 million 10-year secured bullet at par to yield 3 7/8%
By Paul A. Harris
Portland, Ore., May 24 – Heathrow Finance plc launched and priced an upsized £275 million issue of 10-year senior secured bullet notes (Ba3//BB+) at par to yield 3 7/8% on Wednesday, according to a market source.
The issue size was increased from £250 million.
The yield printed at the tight end of yield talk in the 4% area.
Joint active bookrunner Barclays will bill and deliver. ING and JPMorgan were also joint active bookrunners. BofA Merrill Lynch, Credit Suisse, ICBC and RBC Capital Markets were passive bookrunners.
The London-based international airport plans to use the proceeds to refinance debt.
| Issuer: | Heathrow Finance plc
|
| Amount: | £275 million, increased from £250 million
|
| Maturity: | March 1, 2027
|
| Securities: | Senior secured notes
|
| Active bookrunners: | Barclays (bill and deliver), ING, JPMorgan
|
| Passive bookrunners: | BofA Merrill Lynch, Credit Suisse, ICBC, RBC Capital Markets
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Call protection: | Make-whole call at Gilts plus 50 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | May 24
|
| Settlement date: | June 8
|
| Expected ratings: | Moody's: Ba3
|
| Fitch: BB+
|
| Distribution: | Regulation S
|
| Price talk: | 4% area
|
| Marketing: | Quick to market
|
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