A report in the Prospect News High Yield Daily for March 15 omitted some of the banks involved in the sale. Morgan Stanley and SunTrust Robinson Humphrey were also bookrunners for this deal. A correction version appears below.
New Issue: Windstream sells downsized $450 million 7¾% notes due October 2012 to yield 7 7/8%
By Paul A. Harris
Portland, Ore., March 14 - Less than two weeks after tapping the high-yield bond market for $600 million, Windstream Corp. returned on Monday to price a downsized $450 million issue of 7¾% 10.5-year notes (Ba3/B+/) at 99.116 to yield 7 7/8%.
The yield printed at the wide end of price talk, which had been set in the 7¾% area.
J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs, Morgan Stanley and SunTrust Robinson Humphrey were the joint bookrunners for the quick-to-market issue, which was downsized from $500 million.
Proceeds, together with proceeds from its previous $600 million issue of 7½% senior notes due 2023 and borrowings under its revolver or cash on hand, will be used to fund the tender for the total outstanding amount of 8 5/8% senior notes due 2016.
The above-mentioned 7½% notes were priced at par on March 2.
Windstream is Little Rock, Ark.-based communications and technology company.
| Issuer: | Windstream Corp.
|
| Face amount: | $450 million, decreased from $500 million
|
| Proceeds: | $446,022,000
|
| Maturity: | Oct. 1, 2012
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. Morgan Stanley and SunTrust Robinson Humphrey
|
| Coupon: | 7¾%
|
| Price: | 99.116
|
| Yield: | 7 7/8%
|
| Call protection: | 5.5 years
|
| Trade date: | March 14
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¾% area
|
| Marketing: | Quick to market
|
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