By Paul A. Harris
Portland, Ore., Dec. 12 – Terrier Media Buyer, Inc., which does business as Cox Media Group, priced a downsized $1,015,000,000 issue of eight-year senior notes (Caa1/CCC+) at par to yield 8 7/8% on Thursday, according to a market source.
The issue size decreased from $1,165,000,000, while the company concurrently upsized its term loan by $150 million to $2.03 billion.
The migration of proceeds to the loan from the notes reflected the market's preference, a bond trader said, adding that while the bond books were playing to about $1.6 billion of demand Thursday morning, books for the term loan were heard to contain orders of around $4 billion.
The yield printed in the middle of the 8¾% to 9% yield talk. That talk widened from earlier guidance in the low 8% area.
Along with wider pricing, the market demanded and got covenant changes bearing upon the issuer's ability to disburse cash and incur additional debt, said the trader.
J.P. Morgan Securities LLC, RBC Capital Markets LLC, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho Securities USA Inc. were the joint bookrunners.
Proceeds will be used to fund the acquisition of Northwest Broadcasting Inc. and Cox Enterprises Inc.’s television and radio assets by an affiliate of Apollo Global Management, forming a new entity that will do business as Cox Media Group, an Atlanta-based broadcasting company.
| Issuer: | Terrier Media Buyer, Inc.
|
| Amount: | $1,015,000,000, decreased from $1,165,000,000
|
| Maturity: | Dec. 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 702 bps
|
| Call protection: | Three years
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Roadshow
|
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