Published on 9/22/2014 in the Prospect News High Yield Daily.
New Issue: iHeartCommunications sells $250 million tap of 9% notes due 2022 at 101 to yield 8.778%
By Paul A. Harris
Portland, Ore., Sept. 22 – iHeartCommunications, Inc., formerly known as Clear Channel Communications, Inc., priced a $250 million add-on to its 9% priority guarantee notes due Sept. 15, 2022 (Caa1/CCC+) at 101 to yield 8.778% on Monday, according to a syndicate source.
The reoffer price came on top of price talk.
Morgan Stanley & Co. LLC, Goldman Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.
The San Antonio-based media and entertainment company plans to use the proceeds to prepay $243.5 million of its term loan B and $4 million of its term loan C asset sale facility at par.
| Issuer: | iHeartCommunications, Inc., formerly known as Clear Channel Communications, Inc.
|
| Face amount: | $250 million
|
| Proceeds: | $253 million
|
| Maturity: | Sept. 15, 2022
|
| Security description: | Add-on to 9% priority guarantee notes due Sept. 15, 2022
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Co-manager: | LionTree Advisors LLC
|
| Coupon: | 9%
|
| Price: | 101
|
| Yield: | 8.778%
|
| Spread: | 637 bps
|
| First call: | Sept. 15, 2017 at 106.75
|
| Trade date: | Sept. 22
|
| Settlement date: | Sept. 29 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 101
|
| Marketing: | Quick to market
|
| Original issue: | $750 million priced at par on Sept. 5, 2014
|
| Fungibility: | New Rule 144A notes will be immediately fungible with the original notes, Regulation S notes will be fungible after a 40-day cooling period
|
| Total issue size: | $1 billion
|
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