Published on 11/1/2006 in the Prospect News High Yield Daily.
New Issue: Idearc prices $2.85 billion 10-year notes at par to yield 8%
By Paul A. Harris
St. Louis, Nov. 1 - Idearc Inc., a new public company formed by the spinoff of Verizon Communications Inc.'s directories businesses, priced a $2.85 billion issue of 10-year senior notes (B2/B+) at par to yield 8% on Wednesday, according to a market source.
The yield came at the tight end of the 8% to 8¼% price talk.
JP Morgan and Bear Stearns & Co. had the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S. Banc of America Securities LLC was a joint lead manager. The co-managers were Barclays Capital, Citigroup, ABN Amro, Credit Suisse, Merrill Lynch & Co. and Morgan Stanley.
Proceeds, in addition to proceeds from a $6.5 billion credit facility, will be used to finance the spinoff, primarily by making a cash distribution to Verizon Communications.
Idearc will be based in Dallas.
Issuer: | Idearc Inc.
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Amount: | $2.85 billion
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Maturity: | Nov. 15, 2016
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Security description: | Senior notes
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Bookrunners: | JP Morgan, Bear Stearns
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Joint lead manager: | Banc of America Securities LLC
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Co-managers: | Barclays Capital, Citigroup, ABN Amro, Credit Suisse, Merrill Lynch & Co., Morgan Stanley
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Coupon: | 8%
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Price: | Par
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Yield: | 8%
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Spread: | 342 bps
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Call features: | Callable on Nov. 15, 2011 at 104.0, 102.667, 101.333, par on and after Nov. 15, 2014
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Trade date: | Nov. 1
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Settlement date: | Nov. 17
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Ratings: | Moody's: B2
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| Standard & Poor's: B+
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Distribution: | Rule 144A with registration rights
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Price talk: | 8% to 8¼%
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