Time begins marketing $300 million debt refinancing deal; pricing expected Tuesday

By Paul A. Harris

Portland, Ore., Oct. 2 – Time Inc. commenced marketing its expected $300 million offering of eight-year senior notes (B2/B) on Monday, according to market sources.

An investor conference call was scheduled to take place late Monday morning.

Initial guidance is in the 7¼% area, a trader said.

The Rule 144A and Regulation S for life offering is expected to price on Tuesday.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are the joint bookrunners.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at a premium. In addition they feature a three-year 40% equity clawback and a 101% poison put.

The New York-based multi-media company plans to use the proceeds, together with cash on hand, to repay $200 million of term loan debt and reduce either the term loan or the existing notes, or a combination of both, by about $100 million, on or prior to Dec. 31, 2017.

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