Published on 2/26/2009 in the Prospect News High Yield Daily.
New Issue: Videotron upsizes to $260 million, prices tap of 9 1/8% notes due 2018 at 98.625
By Paul A. Harris
St. Louis, Feb. 26 - Videotron Ltd. priced an upsized $260 million add-on to its 9 1/8% senior notes due April 15, 2018 (Ba2/BB-) at 98.625 to yield 9.35% in a quick-to-market Thursday transaction, according to an informed source.
The issue price came cheap to the 98.50 price talk.
Banc of America Securities LLC led the Rule 144A and Regulation S with registration rights deal, which was upsized from $200 million. Citigroup Global Markets Inc. and BMO Nesbitt Burns were joint bookrunners. The co-managers were Scotia Capital (USA) Inc., RBC Capital Markets Corp., TD Securities (USA) LLC, NBF and HSBC.
Proceeds will be used to repay bank debt and for general corporate purposes.
The original $455 million issue priced at 98.432 to yield 9 3/8% on April 7, 2008.
The issuer is a Montreal-based cable television operator.
| Issuer: | Videotron Ltd.
|
| Face amount: | $260 million, upsized from $200 million
|
| Proceeds: | $256.425 million
|
| Maturity: | April 15, 2018
|
| Security description: | Add-on to 9 1/8% senior notes
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., BMO Nesbitt Burns
|
| Co-managers: | Scotia Capital (USA) Inc., RBC Capital Markets Corp., TD Securities (USA) LLC, NBF, HSBC
|
| Coupon: | 9 1/8%
|
| Price: | 98.625
|
| Yield: | 9.35%
|
| Spread: | 645 bps
|
| Call protection: | Callable on April 15, 2013 at 104.563, 103.042, 101.521, par on and after April 15, 2016
|
| Equity clawback: | Until April 15, 2011 for 35% at 109.125
|
| Trade date: | Feb. 26
|
| Settlement date: | March 5 with accrued interest
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 98.50 area
|
| Original issue: | $455 million priced at 98.432 to yield 9 3/8% on April 7, 2008
|
| Total issue size: | $715 million
|
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