By Paul A. Harris
Portland, Ore., Sept. 11 – Astound Broadband priced a downsized $1.9 billion of high-yield notes in two tranches on Friday, according to a market source.
The notes were sold via issuers Radiate Holdco LLC and Radiate Finance Inc.
The deal included a downsized $900 million of six-year senior secured notes (B1/B) that priced at par to yield 4½%. The issue size was decreased from $2.25 billion. The yield printed at the tight end of the 4½% to 4¾% yield talk. Initial talk was in the 5% area.
A $1 billion tranche of eight-year senior unsecured notes (Caa1/CCC+) priced at par to yield 6½%. The yield printed at the tight end of the 6½% to 6¾% yield talk, which was also the initial guidance.
The overall amount of notes issuance decreased from $3.25 billion. A concurrent bank loan was upsized to $2.69 billion from $1.19 billion.
J.P. Morgan Securities LLC was on the left of a syndicate of joint bookrunners that also included Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SG Americas Securities LLC and UBS Securities LLC.
Proceeds will be used to refinance debt, including credit facilities, to fund a dividend to equity holders and for general corporate purposes.
Astound is a Kirkland, Wash.-based provider of cable TV and internet broadband.
| Issuers: | Radiate Holdco LLC and Radiate Finance Inc.
|
| Amount: | $1.9 billion, decreased from $3.25 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SG Americas Securities LLC and UBS Securities LLC
|
| Trade date: | Sept. 11
|
| Settlement date: | Sept. 25
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
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| Senior secured notes
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| Amount: | $900 million, decreased from $2.25 billion
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 4½%
|
| Price: | Par
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| Yield: | 4½%
|
| Spread: | 415 bps
|
| Call protection: | Three years
|
| Ratings: | Moody’s: B1
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| S&P: B
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| Price talk: | 4½% to 4¾%
|
|
|
| Senior unsecured notes
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| Amount: | $1 billion
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| Maturity: | Sept. 15, 2028
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| Coupon: | 6½%
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| Price: | Par
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| Yield: | 6½%
|
| Spread: | 599 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Price talk: | 6½% to 6¾%
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