By Paul A. Harris
St. Louis, Nov. 26 - R.H. Donnelley Corp. priced both tranches of its upsized offering of $925 million of notes at the tight end of downwardly revised price talk.
The deal was increased from an originally announced size of $750 million and the yield guidance reduced on Monday.
The $325 million of senior notes due Dec. 15, 2010 (B1/B+), increased from $300 million, were priced at par to yield 8 7/8%. Price talk was 8 7/8%-9%.
The $600 million of senior subordinated notes due Dec. 15, 2012 (B2/B+), increased from $450 million, were priced at par to yield 10 7/8%. Price talk was 10 7/8%-11%.
Joint bookrunners were Salomon Smith Barney, Bear Stearns & Co. and Deutsche Bank Securities Inc. and co-managers were BNP Paribas and Fleet Securities.
Proceeds will be used to finance R.H. Donnelley's $2.23 billion acquisition of Sprint's directory publishing business, to repay bank debt and to fund a tender for its $150 million of 9 1/8% senior subordinated notes due 2008.
The issuer is a Purchase, N.Y. marketer of yellow pages advertising.
Issuer: R.H. Donnelley Corp.
Amount: $925 million (increased from $750 million) in two parts
| Managers: | Salomon Smith Barney, Bear Stearns, Deutsche Bank Securities (joint books)
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| Co-managers: | BNP Paribas, Fleet Securities
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| Settlement date: | Dec. 3, 2002
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| Distribution: | Rule 144A
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| Senior notes
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| Amount: | $325 million (increased from $300 million)
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| Maturity: | Dec. 15, 2010
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| Description of securities: | Senior notes
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| Coupon: | 8 7/8%
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| Price: | Par
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| Yield: | 8 7/8%
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| Price talk: | 8 7/8%-9%
|
| Spread: | 515 basis points
|
| Call features: | Callable on Dec. 15, 2006 at 104.438, then at 102.219, declining to par on Dec. 15, 2008 and thereafter
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| Equity clawback: | Until Dec. 15, 2005 for 35% at 108.875
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| Ratings: | Moody's: B1
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| Standard & Poor's: B+
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| Rule 144A Cusip: | 749564AA8
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| Senior subordinated notes
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| Amount: | $600 million (increased from $450 million)
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| Maturity: | Dec.15, 2012
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| Description of securities: | Senior subordinated notes
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| Coupon: | 10 7/8%
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| Price: | Par
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| Yield: | | 10 7/8%
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| Price talk: | 10 7/8%-11%.
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| Spread: | 678 basis points
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| Call features: | Callable on Dec. 15, 2007 at 105.438, then at 103.625, 101.813, declining to par on Dec. 15, 2010 and thereafter
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| Equity clawback: | Until Dec. 15, 2005 for 35% at 110.875
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| Ratings: | Moody's: B2
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| Standard & Poor's: B+
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| Rule 144A Cusip: | 749564AC4
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