Published on 1/18/2024 in the Prospect News High Yield Daily.
New Issue: Altice/CSC Holdings sells upsized $2.05 billion 11¾% guaranteed notes due 2029 at par
By Paul A. Harris
Portland, Ore., Jan. 18 – Altice USA subsidiary CSC Holdings, LLC priced an upsized $2.05 billion issue of five-year senior guaranteed notes (B2/B) at par to yield 11¾% in a Thursday drive-by, according to market sources.
The issue increased from $1.25 billion, at which size it was three-times oversubscribed, a trader said.
The deal came into the market on the back of a substantial amount of reverse inquiry, sources said.
The yield printed at the tight end of the 11¾% to 12% yield talk. Initial guidance was in the low-12% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, BofA Securities, Inc., Credit Agricole CIB, 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.
The New York-based broadband communications and video services provider plans to use the proceeds plus balance sheet cash to repay bank debt.
| Issuer: | CSC Holdings, LLC
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| Amount: | $2.05 billion, increased from $1.25 billion
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| Issue: | Senior guaranteed notes
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| Maturity: | Jan. 31, 2029
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Barclays, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, BofA Securities, Inc., Credit Agricole CIB, 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: | 11¾%
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| Price: | Par
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| Yield: | 11¾%
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| Spread: | 769 bps
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| First call: | Jan. 31, 2026 at 105.875
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| Trade date: | Jan. 18
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| Settlement date: | Jan. 25
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| Ratings: | Moody’s: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 11¾% to 12%
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| Marketing: | Drive-by
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