By Paul Deckelman
New York, Nov. 1 – Midcontinent Communications priced a quickly shopped $125 million add-on (B3/B) to its existing 6 7/8% senior notes due Aug. 15, 2023 on Tuesday, junk bond syndicate sources said.
The add-on tranche priced at 105.5 – in line with price talk – to yield 5.55%.
The company’s Midcontinent Finance Corp. unit is a co-issuer of the notes.
The Rule 144A/Regulation S for life offering came to market via joint bookrunners SunTrust Robinson Humphrey Inc., Wells Fargo Securities and RBC Capital Markets Corp. plus co-managers TD Securities (USA) LLC and U.S. Bancorp.
The add-on notes have the same terms as the original $300 million of 6 7/8s which priced at par on Aug. 11, including a first call on Aug. 15, 2018, at 105.156.
Midcontinent, a Sioux Falls, S.D.-based regional cable operator serving customers in North and South Dakota, Minnesota and Wisconsin, plans to use the new-deal proceeds for general corporate purposes, including to partially finance the company’s recently announced acquisition of assets from Lawrence, Kan.-based cable operator WOW!.
| Issuers: | Midcontinent Communications & Midcontinent Finance Corp.
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| Amount: | $125 million (brings total amount of outstanding notes to $425 million)
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| Security Description: | Add-on to senior notes due 2023
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| Maturity: | Aug. 15, 2023
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| Bookrunners: | SunTrust Robinson Humphrey Inc., Wells Fargo Securities and RBC Capital Markets Corp.
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| Co-managers: | TD Securities (USA) LLC and U.S. Bancorp.
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| Coupon: | 6 7/8%
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| Price | 105.5
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| Yield to Maturity | 5.55%
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| First call: | Aug. 15, 2018 at 105.156
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| Ratings: | Moody’s: B3
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| S&P: B
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| Trade date: | Nov. 1
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| Settlement date | Nov 4 (T+3)
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| Distribution: | Rule 144A/Regulation S for life
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| Marketing: | Quick-to-market
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| Price talk: | 105.5
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