By Paul A. Harris
St. Louis, Mo., Jan. 11 - Rural Cellular Corp. priced $300 million of eight-year senior subordinated notes (B3/B-) at par to yield 9¾%, according to syndicate sources.
Citing price talk of 9½%-9¾%, a syndicate official said that the deal "came in line" with talk.
"I think the deal could have potentially been upsized if we and the issuer chose to," the official commented. "The bonds have broken to a premium here." He quoted them at 101-101¼ in the aftermarket.
"I think the company didn't want to upsize, in part because their bank debt got upgraded last night (to Ba3 from B1 by Moody's Investors Service)."
Dresdner Kleinwort Wasserstein ran the books on the Rule 144A deal. Co-leads were TD Securities and Credit Suisse First Boston. Wachovia Securities and Banc of America Securities were co-managers.
| Issuer: | Rural Cellular Corp.
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| Amount: | $300 million
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| Maturity: | Jan. 15, 2010
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| Type: | Senior subordinated notes
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| Bookrunner: | Dresdner Kleinwort Wasserstein
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| Coupon: | 9¾%
|
| Price: | Par
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| Yield: | 9¾%
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| Spread: | 488 basis point over 5% Treasury of 2011
|
| Call features: | Callable on Jan. 15, 2006 at 104.875, then at 103.250, 101.625, declining to par on Jan. 15, 2009 and thereafter
|
| Equity clawback: | None
|
| Settlement date: | Jan. 16 flat
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Cusip: | 781904AE7
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| End
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