By Paul Deckelman
New York, July 8 - Horizon PCS Escrow Co. (B3/CCC) priced a $125 million offering of eight-year senior notes Thursday at part to yield 11 3/8%, according to syndicate sources.
The offering came at the tight ends of price talk which had put the yield at 11½%. The spread over Treasuries was 709 basis points.
The Chillicothe, Ohio-based Sprint PCS affiliate's issue came to market via joint bookrunning managers Credit Suisse First Boston and Lehman Brothers.
The notes, issued as a private placement under Rule 144A, will be non-callable for the first four years after issue.
The company will use the proceeds from the deal to repay bank debt as part of its reorganization plan.
Issuer: Horizon PCS Escrow Co.
| Amount: | $125 million
|
| Security type: | Senior notes
|
| Maturity: | July 15, 2012
|
| Bookrunners: | Credit Suisse First Boston, Lehman Brothers
|
| Coupon: | 11 3/8%
|
| Price: | Par
|
| Yield: | 11 3/8%
|
| Spread: | 709 basis points
|
| Call: | Callable from July 15, 2008 at 105.688, then 102.844, declining to par from July 15, 2010.
|
| Equity clawback: | Until July 15, 2007 for 35% at 111.375
|
| Ratings: | Moody's: B3
|
| S&P: CCC
|
| Settlement: | July 19 (T+7) flat
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