Published on 3/15/2004 in the Prospect News High Yield Daily.
New Issue: Rural Cellular sells $510 million in fixed-, floating-rate notes
By Paul A. Harris
St. Louis, March 15 - Rural Cellular Corp. sold a combined $510 million of senior secured notes (B2/B-) in fixed- and floating-rate tranches on Monday, a syndicate source said.
The Alexandria, Minn.-based wireless services provider sold $350 million of eight-year fixed-rate notes at par to yield 8¼%. Price talk was 8¼% to 8½%.
The company also sold $160 million of six-year floating-rate notes at par to yield three-month Libor plus 450 basis points. Price talk was Libor plus 450 to 475 basis points.
Lehman Brothers and Banc of America Securities ran the books on the Rule 144A/Regulation S issue. Lazard was the co-manager.
Proceeds will be used to repay bank debt and terminate interest rate swap agreements.
| Issuer: | Rural Cellular Corp.
|
| Amount: | $510 million
|
| Bookrunners: | Lehman Brothers, Banc of America Securities
|
| Co-manager: | Lazard
|
| Security description: | Senior secured notes
|
| Pricing date: | March 15
|
| Settlement date: | March 25
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
|
|
| Fixed-rate tranche
|
| Amount; | $350 million
|
| Maturity: | March 15, 2012
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 482 basis points
|
| Call features: | Callable after March 15, 2008 at 104.125, 102.063, par on or after March 15, 2010
|
| Equity clawback: | Until March 15, 2007 for 35% at 108.25
|
| Price talk: | 8¼%-8½%
|
|
|
| Floating-rate tranche
|
| Amount: | $160 million
|
| Maturity: | March 15, 2010
|
| Coupon: | Three-month Libor plus 450 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 450 basis points
|
| Call features: | Callable after March 15, 2006 at 102, 101, par on or after March 15, 2008
|
| Equity clawback: | Until March 15, 2006 for 35%
|
| Price talk: | Libor plus 450-475 basis points
|
|
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