By Paul A. Harris
St. Louis, July 30 - Magyar Telecom BV sold €142 million of eight-year senior notes (Caa1/B-) Friday at 98.682 with a 10¾% coupon to yield 11%, according to syndicate sources.
Price talk was 10¾% to 11%.
Credit Suisse First Boston and BNP Paribas were joint bookrunners for the Rule 144A/Regulation S issue.
The company also obtained a €165 million bank loan.
Proceeds will be used to repay bank debt, to fund repayment of a shareholder loan and to repay a vendor loan from Vivendi Universal.
The issuer is a holding company for Invitel, Hungary's second largest local fixed-line telephone company, formerly owned by Vivendi Universal, now owned by GMT Communications Partners Ltd. and AIG Emerging Europe Infrastructure.
| Issuer: | Magyar Telecom BV
|
| Amount: | €142 million
|
| Maturity: | Aug. 15, 2012
|
| Security description: | Senior notes
|
| Bookrunners: | Credit Suisse First Boston, BNP Paribas
|
| Coupon: | 10¾%
|
| Price: | 98.682
|
| Yield: | 11%
|
| Spread: | 701 basis points
|
| Call features: | Callable after Aug. 15 2008 at 105.375, 103.583, 101.792, par on or after Aug. 15 2011
|
| Equity clawback: | Until Aug. 15, 2007 for 35% at 110.75
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 6 (T+5)
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 10¾%-11%
|
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