By Paul A. Harris
Portland, Ore., April 18 – Altice USA, Inc. priced $1 billion of CSC Holdings, LLC 11¼% five-year senior guaranteed notes (B1/B) at par to yield 11.245% in a Tuesday drive-by, according to market sources.
The yield printed slightly inside of the 11¼% to 11½% yield talk. However, the yield came in the middle of the 11% to 11½% initial guidance.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC.
By mid-afternoon on Tuesday the deal was heard to be playing to $4.5 billion of demand, a trader said.
Another trader saw the new notes going out at par ½ bid, 101 offered and added that the deal was trading with an implied yield of 11%, indicating a general hunger for big coupons among investors.
Proceeds plus balance sheet cash will be used for general corporate purposes, which may include the opportunistic refinancing of certain of CSC’s existing debt, and to finance capital expenditures which may include the purchase, lease, rental or cost of design, construction, installation or improvement of property, plant or equipment. Pending those uses, the proceeds may be used to temporarily pay down revolver debt.
CSC Holdings is a wholly owned subsidiary Altice USA, a technology, media and telecom company based in New York.
| Issuer: | CSC Holdings, LLC
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| Amount: | $1 billion
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| Issue: | Senior guaranteed notes
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| Maturity: | May 15, 2028
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Coupon: | 11¼%
|
| Price: | Par
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| Yield: | 11.245%
|
| Spread: | 755 bps
|
| First call: | May 15, 2025 at 105.625
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| Trade date: | April 18
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| Settlement date: | April 25
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| Ratings: | Moody's: B1
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11¼% to 11½%
|
| Marketing: | Drive-by
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