By Rebecca Melvin
New York, March 29 – Vrio Corp., a Latin America-focused subsidiary of AT&T Inc., priced $1 billion of notes in two tranches (expected ratings: Ba2/BB/BB+), with the shorter-dated, five-year notes pricing tight compared to talk and holding up in the aftermarket, compared to the longer-dated, 10-year tranche, which priced at a discount and traded down, according to market sources on Thursday.
The $350 million of five-year notes priced at par to yield 6¼%. Pricing came tight compared to initial price talk in the mid 6% range.
The $650 million of 6 7/8% 10-year notes priced at 99.112 for a yield of 7%. That was at the high end of the high-6% to 7% range of initial talk.
Citigroup, Goldman Sachs & Co., JPMorgan and Morgan Stanley were the bookrunners for the Rule 144A and Regulation S notes, which were issued by Vrio Finco 2 Inc. (2023 notes) and Vrio Finco 1 LLC (2028 notes). Pricing occurred on Wednesday.
Vrio is a wholly owned subsidiary of AT&T and owns and operates DirectTV Latin America’s South American and Caribbean assets.
| Issuer: | Vrio Finco 1 LLC, Vrio Finco 2 Inc.
|
| Obligor: | Vrio Corp.
|
| Amount: | $1 billion
|
| Description: | Notes
|
| Bookrunners: | Citigroup, Goldman Sachs & Co., JPMorgan and Morgan Stanley
|
| Trade date: | March 28
|
| Settlement date: | April 4
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2023 notes
|
| Issuer: | Vrio Finco 2 Inc.
|
| Amount: | $350 million
|
| Maturity: | April 4, 2023
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Price talk: | Mid-6% initial price talk
|
|
|
| 2028 notes
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| Issuer: | Vrio Finco 1 LLC
|
| Amount: | $650 million
|
| Maturity: | April 4, 2028
|
| Coupon: | 6 7/8%
|
| Price: | 99.112
|
| Yield: | 7%
|
| Price talk: | High 6%-7% initial price talk
|
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