By Paul A. Harris
Portland, Ore., Jan. 20 – RCN Telecom Services LLC and Grande Communications Networks LLC priced a $400 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 6 5/8% on Friday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 6¾% area; 7% was the initial guidance.
UBS Investment Bank is the lead left bookrunner for the Rule 144A and Regulation S for life offering. Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds, together with borrowings under the senior secured credit facilities, will be used to help fund the acquisitions of RCN Telecom Services for $1.6 billion and Grande Communications Networks for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners.
The issuing entities are Radiate HoldCo, LLC and Radiate Finance, Inc.
RCN and Grande will be combined into one broadband services provider.
| Issuers: | Radiate HoldCo, LLC and Radiate Finance, Inc.
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Lead left bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 423.3 bps
|
| Call protection: | Three years
|
| Trade date: | Jan. 20
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
