By Rebecca Melvin
New York, Nov. 13 - Liberty Global Inc. priced an upsized $850 million of seven-year convertible senior notes in an overnight deal, with allocation and final terms set before the market open Friday, according to a syndicate source.
The deal went out at 2 a.m. Friday morning to the European market first, the source said.
Goldman Sachs & Co. is the bookrunner of the Rule 144A transaction, which was originally going to be $750 million in size. There is an $85 million greenshoe.
The deal came at the midpoint of talk for the coupon, which was 4.25% to 4.75%, and at the cheap end of talk for the premium, which was 15% to 20%.
The premium was based on a basket of Liberty Global's series A and series C common stock at closing Nov. 12.
The bonds will be non-callable for life, with no investor puts. There is full dividend protection and protection upon a make-whole adjustment event, both in the form of a conversion rate adjustment.
A change of control would constitute an event of default.
Proceeds will be used to pay for the acquisition of Unitymedia GmbH for about €2 billion.
Liberty Global is an international cable operator based in Englewood, Colo.
| Issuer: | Liberty Global Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $850 million, upsized from $750 million
|
| Greenshoe: | $85 million
|
| Maturity: | Nov. 15, 2016
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 4.5%
|
| Price: | Par, $1,000
|
| Yield: | 4.5%
|
| Conversion premium: | 15%
|
| Conversion price: | $26.5391
|
| Conversion ratio: | 37.6803
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 4.25%-4.75%, up 15%-20%
|
| Dividend protection: | Yes
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 18
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: LBTYA and LBTYK
|
| Stock reference prices: | $23.10 and $23.01
|
| Market capitalization: | $5.47 billion
|
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