By Andrea Heisinger
New York, April 3 - Vivendi SA priced $2 billion of notes (Baa2/BBB/BBB) on Tuesday in three tranches, an informed source said.
A $550 million tranche of 2.4% three-year paper priced at 99.994 to yield 2.402% with a spread of 185 basis points over Treasuries. The notes were sold tighter than guidance in the low 200 bps area, the source said.
There is a make-whole call at 30 bps over Treasuries.
A $650 million tranche of 3.45% five-year notes sold at 99.962 to yield 3.458% with a spread of Treasuries plus 235 bps. The tranche was sold at the tight end of talk in the 237.5 bps area.
The notes have a make-whole call at 35 bps over Treasuries.
The third part was $800 million of 4.75% 10-year notes priced at 99.662 to yield 4.793% with a spread of Treasuries plus 250 bps. These notes were sold at the tight end of the guidance range of 250 bps to 262.5 bps.
There is a make-whole call at 40 bps over Treasuries.
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
The deal was priced under Rule 144A and Regulation S.
Proceeds will be used to fund a concurrent tender offer for Vivendi's $700 million 5.750% notes due 2013. Remaining proceeds will be used to refinance drawings under Vivendi's bank facilities.
Vivendi last sold bonds in the U.S. market in a $1.4 billion trade in two tranches on April 1, 2008. The 5.75% five-year notes from that offering priced at 325 bps over Treasuries while a 6.625% 10-year note priced at 312.5 bps over Treasuries.
The entertainment company is based in Paris.
| Issuer: | Vivendi SA
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | April 3
|
| Settlement date: | April 12
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Three-year notes
|
| Amount: | $550 million
|
| Maturity: | April 12, 2015
|
| Coupon: | 2.4%
|
| Price: | 99.994
|
| Yield: | 2.402%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | Low 200 bps area
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Jan. 12, 2018
|
| Coupon: | 3.45%
|
| Price: | 99.962
|
| Yield: | 3.458%
|
| Spread: | Treasuries plus 235 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 237.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | April 12, 2022
|
| Coupon: | 4.75%
|
| Price: | 99.662
|
| Yield: | 4.793%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 250 bps to 262.5 bps
|
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