By Paul A. Harris
St. Louis, July 12 - Windstream Corp. priced a $400 million issue of 8 1/8% eight-year senior unsecured notes (Ba3/B+/BB+) at 99.248 to yield 8¼% on Monday, according to a syndicate source.
The yield printed at the tight end of the 8 3/8% area yield talk. The reoffer price came slightly rich to discount talk of approximately 1 point.
Morgan Stanley & Co. Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market deal.
Joint lead managers were Barclays Capital Inc. and Citigroup Global Markets Inc.
Co-managers were BNP Paribas Securities Corp., Mitsubishi UFJ Securities and SunTrust Robinson Humphrey Inc.
Proceeds will be used to repay the company's revolving credit facility and to finance the acquisition of Iowa Telecom. Any remaining proceeds will be used for general corporate purposes.
Windstream is a Little Rock, Ark.-based communications company.
| Issuer: | Windstream Corp.
|
| Face amount: | $400 million
|
| Proceeds: | $396,992,000
|
| Maturity: | Sept. 1, 2018
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | Morgan Stanley & Co. Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Joint lead managers: | Barclays Capital Inc., Citigroup Global Markets Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Mitsubishi UFJ Securities, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8 1/8%
|
| Price: | 99.248
|
| Yield: | 8¼%
|
| Spread: | 556 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2014, then callable at 104.063, 102.031, par on and after Sept. 1, 2016
|
| Equity clawback: | 35% at 108.125 until Sept. 1, 2013
|
| Trade date: | July 12
|
| Settlement date: | July 19
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Fitch: BB+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 8 3/8% area with approximately 1 point OID
|
| Marketing: | Quick to market
|
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