By Paul A. Harris
St. Louis, Nov. 19 - Rogers Cable Inc. priced $420 million equivalent of senior secured second priority notes (Ba3/BB+) in two tranches on Friday, according to market sources.
Citigroup and JP Morgan ran the books for the Rule 144A issue. The co-managers were TD Securities, Scotia Capital, RBC Capital Markets, CIBC Capital Markets, Harris Nesbitt and SG Corporate & Investment Banking.
The company sold $275 million of notes due March 15, 2015 at par to yield 6¾%, inside of the 7% area price talk.
Rogers Cable also sold C$175 million of seven-year notes at par to yield 7¼%, which was right on top of the 7¼% area price talk.
Proceeds will be used to repay bank debt.
The issuer, a subsidiary of Rogers Communications Inc., is a Toronto-based cable television and high-speed internet service provider.
| Issuer: | Rogers Cable Inc.
|
| Amount: | $420 million equivalent
|
| Bookrunners: | Citigroup, JP Morgan
|
| Co-managers: | TD Securities, Scotia Capital, RBC Capital Markets, CIBC Capital Markets, Harris Nesbitt, SG Corporate & Investment Banking
|
| Security description: | Senior secured second priority notes
|
| Settlement date: | Nov. 30
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
|
|
| Dollar denominated tranche
|
| Amount: | $275 million
|
| Maturity: | March 15, 2015
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 255 basis points
|
| Call protection: | Non-callable
|
| Price talk: | 7% area
|
|
|
| Canadian dollar-denominated tranche
|
| Amount: | C$175 million
|
| Maturity: | Dec. 15, 2011
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 304 basis points
|
| Call protection: | Non-callable
|
| Price talk: | 7¼% area
|
|
|
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