Published on 8/13/2004 in the Prospect News High Yield Daily.
New Issue: Rainbow National prices $800 million two-tranche bond offering
By Paul A. Harris
St. Louis, Aug. 13 - Rainbow National Services LLC, a subsidiary of Cablevision Systems Corp., priced $800 million of high-yield bonds in two slightly restructured tranches on Friday, according to a syndicate source.
The company priced an upsized $300 million tranche of 8¾% eight-year senior notes (B3/CCC+) at 99.279 to yield 8 7/8%. Price talk was 8½% to 8¾%. The deal was upsized from $250 million.
The company also priced a downsized $500 million of 10 3/8% 10-year senior subordinated notes (Caa1/CCC+) at 99.217 to yield 10½%. Price talk was 9¾% to 10%. The issue was decreased from $550 million.
Banc of America Securities, Bear Stearns & Co., Credit Suisse First Boston and JP Morgan ran the books for the Rule 144A-for-life issues.
Proceeds will be used to repay debt and fund a distribution to the parent company.
Rainbow owns American Movie Classics, The Independent Film Channel and Women's Entertainment (WE).
| Issuer: | Rainbow National Services LLC
|
| Amount: | $800 million
|
| Bookrunners: | Banc of America Securities, Bear Stearns & Co., Credit Suisse First Boston, JP Morgan
|
| Pricing date: | Aug. 13
|
| Settlement date: | Aug. 20
|
|
|
| Senior notes
|
| Amount: | $300 million (increased from $250 million)
|
| Maturity: | Sept. 1, 2012
|
| Coupon: | 8¾%
|
| Price: | 99.279
|
| Yield: | 8 7/8%
|
| Spread: | 486 basis points
|
| Call features: | Callable after Sept. 1, 2008 at 104.37, 102.188, par on or after Sept. 1, 2010
|
| Equity clawback: | Until Sept. 1, 2007 for 35% at 108.75
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | 8½%-8¾%
|
|
|
| Senior subordinated notes
|
| Amount: | $500 million (decreased from $550 million)
|
| Maturity: | Sept. 1, 2014
|
| Coupon: | 10 3/8%
|
| Price: | 99.217
|
| Yield: | 10½%
|
| Spread: | 630 basis points
|
| Call features: | Callable after Sept. 1, 2009 at 105.188, 103.458, 101.729, par on or after Sept. 1, 2012
|
| Equity clawback: | Until Sept. 1, 2007 for 35% at 110.375
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 9¾%-10%
|
|
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