West Corp. talks $1.35 billion eight-year notes to yield 8¾%-9%; pricing Tuesday

By Paul A. Harris

Portland, Ore., Oct. 2 – West Corp. talked its $1.35 billion offering of eight-year senior notes (B3/CCC+/B-) to yield 8¾% to 9%, a syndicate source said on Monday.

There are also covenant changes, the source added.

Commitments are due at 5 p.m. ET on Monday, and the deal is set to price and allocate on Tuesday.

Joint bookrunner RBC Capital Markets LLC will bill and deliver for the Rule 144A for life and Regulation S offering. Credit Suisse Securities (USA) LLC, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. are also joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used to help fund the buyout of the Omaha-based provider of communication and network infrastructure services by Apollo Global Management LLC.

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