By Paul A. Harris
Portland, Ore., June 3 – Videotron Ltd. and Videotron Ltee. priced approximately $1.12 billion equivalent of senior notes (Ba1/BB+) in an upsized Thursday drive-by, according to market sources.
The deal, which upsized from approximately $830 million equivalent, featured a $500 million tranche of eight-year notes, which priced at par to yield 3 5/8%. The yield printed at the tight end of yield talk in the 3¾% area. Initial guidance was 3¾% to 3 7/8%.
The offering also featured an upsized C$750 million tranche of seven-year notes, which also priced at par to yield 3 5/8%. The Canadian dollar-denominated notes, upsized from C$400 million, priced at the tight end of the 3 5/8% to 3¾% yield talk. Initial guidance was in the 3¾% area.
BofA was the lead for the dollar-denominated tranche.
NBF was the lead for the Canadian dollar-denominated tranche.
The Quebec-based integrated telecommunications company, a wholly owned subsidiary of Quebecor Media Inc. (QMI), plans to use the proceeds plus approximately C$750 million of cash on hand to pay off Videotron’s 5% senior notes due 2022 and a portion of QMI's senior notes due 2023.
| Issuer: | Videotron Ltd. and Videotron Ltee.
|
| Securities: | Senior notes
|
| Trade date: | June 3
|
| Rating: | Moody’s: Ba1
|
| S&P: BB+
|
|
|
| U.S. dollar notes
|
| Amount: | $500 million
|
| Maturity: | June 15, 2029
|
| Lead: | BofA
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Call protection: | Three years
|
| Price talk: | 3¾% area
|
|
|
| Canadian dollar notes
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| Amount: | C$750 million
|
| Maturity: | June 15, 2028
|
| Lead: | NBF
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Call protection: | Three years
|
| Price talk: | 3 5/8% to 3¾%
|
|
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