New Issues: Unitymedia upsizes, prices €2.095 billion and $845 million notes in three tranches

By Paul A. Harris

St. Louis, Nov. 17 - German cable firm Unitymedia priced three upsized tranches of notes on Tuesday, according to an informed source.

Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH priced €1.43 billion and $845 million of 8 1/8% eight-year senior secured notes (B1/BB-/) at 97.844 to yield 8½%.

The yield printed on top of yield talk. The issue price came within the context of the 1.5 points to 2.5 points of discount talk.

The euro-denominated notes tranche was upsized from €1.4 billion. The dollar-denominated tranche was upsized from $825 million after having previously been increased from $750 million.

In addition Unitymedia GmbH priced an upsized €665 million issue of 9 5/8% 10-year senior notes (B3/B-/) at 97.652 to yield 10%.

Once again, the yield printed on top of yield talk, and the issue price came within the context of the 1½ points to 2½ points of discount talk.

The senior notes tranche was upsized from €650 million, after having previously been increased from €600 million.

Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, London Branch, Goldman Sachs International and J.P. Morgan Securities Ltd. were joint bookrunners.

Proceeds will be used to help finance the acquisition of the Unitymedia by Liberty Global in a transaction valued at $2.98 billion.

Issuers:	Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH
Face amounts:	€1.43 billion, increased from €1.4 billion
	$845 million, increased from $825 million, previously increased from $750 million
Proceeds:	€1,399,000,000 (approximate)
	$826,782,000 (approximate)
Maturity:	Dec. 1, 2017
Security description:	Senior secured notes
Bookrunners:	Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, London Branch, Goldman Sachs International, J.P. Morgan Securities Ltd.
Coupon:	8 1/8%
Price:	97.844
Yield:	8½%
Spreads:	Euro-denominated notes priced at Bunds plus 541 bps
	Dollar-denominated notes priced at Treasuries plus 540 bps
Call features:	Make whole at Bunds/Treasuries plus 50 bps until Dec. 1, 2012, then callable at 108.125, 104.063, 102.031, par on Dec. 1, 2015
Equity clawback:	35% at 108.125 until Dec. 1, 2012
Trade date:	Nov. 17
Settlement date:	Nov. 20
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S for life
Price talk:	8½% area with 11/2-2½ points OID
Issuer:	Unitymedia GmbH
Face amount:	€665 million, increased from €650 million and before that from €600 million
Maturity:	Dec. 1, 2019
Security description:	Senior notes
Bookrunners:	Credit Suisse Securities (Europe) Ltd., Deutsche Bank AG, London Branch, Goldman Sachs International, J.P. Morgan Securities Ltd.
Coupon:	9 5/8%
Price:	97.652
Yield:	10%
Spread:	668 bps
Call features:	Make-whole call at Bunds plus 50 bps until Dec. 1, 2014, then callable at 104.813, 103.208, 101.604, par on and after Dec. 1, 2017
Equity clawback:	35% at 109.625 until Dec. 1, 2012
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S for life
Price talk:	10% area with 11/2-2½ points OID

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