By Paul A. Harris
Portland, Ore., Oct. 24 – Wind Tre SpA priced an upsized €7,325,000,000 equivalent amount of senior secured notes (B1/BB-/BB) in a revised four-part offering from which a proposed dollar-denominated tranche of floating-rate notes was withdrawn, according to a market source.
The deal, which was upsized from €7.3 billion, included:
• €1,625,000,000 of fixed-rate notes due January 2023, which priced at par to yield 2 5/8%. The yield printed at the tight end of yield talk in the 2¾% area. Initial guidance was in the 3% area;
• €1.75 billion of fixed-rate notes due January 2025, which priced at par to yield 3 1/8%. The yield printed at the tight end of yield talk in the 3¼% area. Initial guidance was in the 3½% area;
• $2 billion of fixed-rate notes due January 2026, which priced at par to yield 5%. The yield printed 12.5 basis points inside of yield talk in the 5¼% area. Initial guidance was in the low-to-mid 5% area; and
• €2.25 billion of Euribor plus 275 bps floating-rate notes due January 2024, which priced at par. The spread came at the tight end of the Euribor plus 275 bps to 300 bps spread talk. The reoffer price came on top of price talk.
Joint global coordinator Deutsche Bank will bill and deliver for the euro-denominated notes.
Joint global coordinator BofA Merrill Lynch will bill and deliver for the dollar-denominated notes.
HSBC was also a joint global coordinator.
Banca IMI, Barclays, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, ING, JPMorgan, Mediobanca, Mizuho, MUFG, Natixis, Nomura, SMBC, SG and UniCredit were joint bookrunners.
The Rome-based telecom plans to use the proceeds, along with drawings under its new senior secured credit facilities, and amounts due to Wind Tre upon termination of derivative hedging instruments related to existing debt, to repay certain intercompany loans to Wind Acquisition Finance, which will use the funds to redeem the existing notes, and repay the existing senior credit facilities. The additional proceeds resulting from the €25 million upsizing of the deal will be used to put cash on the balance sheet.
| Issuer: | Wind Tre SpA
|
| Amount: | €7,325,000,000 equivalent, increased from €7.3 billion equivalent
|
| Securities: | Senior secured notes
|
| Joint global coordinators: | Deutsche Bank (bill and deliver on euro-denominated notes), BofA Merrill Lynch (bill and deliver on dollar-denominated notes), HSBC
|
| Joint bookrunners: | Banca IMI, Barclays, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, ING, JPMorgan, Mediobanca, Mizuho, MUFG, Natixis, Nomura, SMBC, SG, UniCredit
|
| Trade date: | Oct. 24
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year fixed-rate notes
|
| Amount: | €1,625,000,000
|
| Maturity: | January 2023
|
| Coupon: | 2 5/8%
|
| Price: | Par
|
| Yield: | 2 5/8%
|
| Spread: | 285 bps
|
| Call protection: | Two years
|
| Price talk: | 2¾% area
|
|
|
| Seven-year fixed-rate notes
|
| Amount: | €1.75 billion
|
| Maturity: | January 2025
|
| Coupon: | 3 1/8%
|
| Price: | Par
|
| Yield: | 3 1/8%
|
| Spread: | 306 bps
|
| Call protection: | Three years
|
| Price talk: | 3¼% area
|
|
|
| Eight-year fixed-rate notes
|
| Amount: | $2 billion
|
| Maturity: | January 2026
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Call protection: | Three years
|
| Price talk: | 5¼% area
|
|
|
| Floating-rate notes
|
| Amount: | €2.25 billion
|
| Maturity: | January 2024
|
| Coupon: | Euribor plus 275 bps
|
| Price: | Par
|
| Yield: | Euribor plus 275 bps
|
| Call protection: | One year
|
| Price talk: | Euribor plus 275 bps to 300 bps at par
|
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