Published on 7/1/2009 in the Prospect News High Yield Daily.
New Issue: Wind prices €2.7 billion equivalent 11¾% eight-year notes in two tranches
By Paul A. Harris
St. Louis, July 1 - Wind Acquisition Finance SA, a financing unit of Italy's Wind Telecomunicazioni SpA, priced €2.7 billion equivalent of 11¾% eight-year senior notes (B2/BB-/) in two tranches on Wednesday, according to an informed source.
In its dollar-denominated tranche the company priced $2 billion at 97.492 to yield 12¼%.
That brought the tranche in tight to the 12¼% to 12½% yield talk, with the coupon coming on top of coupon talk.
In the euro-denominated tranche, meanwhile, Wind priced €1.25 billion at 96.271 to yield 12½%.
The euro-denominated notes, therefore, printed at the wide end of the 12¼% to 12½% price talk, with the coupon coming atop coupon talk.
Deutsche Bank Securities Inc., Credit Suisse and Banca IMI were joint global coordinators and lead bookrunners. BNP Paribas Securities Corp., Calyon Securities, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., MPS, RBS Securities Inc. and UniCredit are joint bookrunners.
Proceeds will be used to refinance €2 billion of payment-in-kind loans due 2011 and to fund a dividend to Weather Investments SpA, the holding company that acquired Wind in 2005.
Wind is based in Milan, Italy.
| Issuer: | Wind Acquisition Finance, SA
|
| Face amount: | €2.7 billion equivalent
|
| Maturity: | July 15, 2017
|
| Security description: | Senior notes
|
| Joint global coordinators, lead bookrunners: | Deutsche Bank Securities Inc., Credit Suisse, Banca IMI
|
| Joint bookrunners: | BNP Paribas Securities Corp., Calyon Securities, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., MPS, RBS Securities Inc., UniCredit
|
| Co-managers: | Banca Akros, ING, Mediobanca, Banc of America Securities LLC, Natixis Bleichroeder Inc.
|
| Coupon: | 11¾%
|
| Call protection: | Make-whole at Bunds/Treasuries plus 50 bps until July 15, 2013, then callable at 105.875, 102.938, par on and after July 15, 2015
|
| Equity clawback: | 35% at 111.75 until July 15, 2012
|
| Trade date: | July 1
|
| Settlement date: | July 13
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Price talk: | 11¾% coupon at a discount to yield 12¼% to 12½%
|
|
|
| Dollar-denominated notes
|
| Face amount: | $2 billion
|
| Proceeds: | $1.95 million (approximate)
|
| Price: | 97.492
|
| Yield: | 12¼%
|
| Spread: | 883 bps
|
|
|
| Euro-denominated notes
|
| Face amount: | €1.25 billion
|
| Proceeds: | €1.203 billion (approximate)
|
| Price: | 96.271
|
| Yield: | 12½%
|
| Spread: | 929 bps
|
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