By Paul A. Harris
St. Louis, April 26 - Rural Cellular Corp. priced a $160 million add-on to its 8¼% senior secured notes due March 15, 2012 (B2/B) at 104.125 on Wednesday, resulting in a 7.011% yield to worst and a 7.369% yield to maturity, according to an informed source.
The dollar price came in the middle of the 104.00 to 104.25 price talk.
Lehman Brothers ran the books for the Rule 144A and Regulation S add-on.
Proceeds will be used to redeem all of the company's senior secured floating-rate notes due 2010, which have a coupon of Libor plus 450 basis points.
The original $350 million issue priced at par in March 2004 as part of an overall $510 million transaction that also included a $160 million tranche of the above-mentioned senior secured floating-rate notes due March 15, 2010.
The total issue size for the fixed-rate notes following Wednesday's add-on is $510 million.
The issuer is an Alexandria, Minn.-based wireless services provider.
| Issuer: | Rural Cellular Corp.
|
| Amount: | $160 million
|
| Maturity: | March 15, 2012
|
| Security description: | Add-on to 8¼% senior secured notes
|
| Bookrunner: | Lehman Brothers
|
| Coupon: | 8¼%
|
| Price: | 104.125
|
| Yield to worst: | 7.011%
|
| Yield to worst spread: | 201 bps
|
| Yield to maturity: | 7.369%
|
| 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
|
| Trade date: | April 26
|
| Settlement date: | May 5 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 104-104.25
|
| Original issue: | $350 million priced at par in March 2004
|
| Total issue size: | $510 million
|
|
|
© 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.
