Published on 1/8/2013 in the Prospect News High Yield Daily.
New Issue: Windstream prices $700 million 6 3/8% 10.5-year notes at par to yield 6.374%
By Paul A. Harris
Portland, Ore., Jan. 8 - Windstream Corp. priced a $700 million issue of 6 3/8% 10.5-year notes (Ba3/B/BB+) at par to yield 6.374% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk that was set in the 6½% area.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market deal.
Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Proceeds will be used to pay the consideration in connection with the company's tender offer, including any accrued and unpaid interest on the Paetec 8 7/8% notes.
Windstream is a Little Rock, Ark.-based telecommunications company.
| Issuer: | Windstream Corp.
|
| Amount: | $700 million
|
| Maturity: | Aug. 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC, Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6.374%
|
| Spread: | 451 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2018, then callable at 103.188, 102.125, 101.063, par on and after Feb. 1, 2021
|
| Equity clawback: | 35% at 106.375 until to Feb. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 8
|
| Settlement date: | Jan. 23
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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