Published on 7/18/2017 in the Prospect News High Yield Daily.
New Issue: Midcontinent Communications prices upsized $125 million tap of 6 7/8% notes at 107.375 to yield 4.486%
By Paul A. Harris
Portland, Ore., July 18 – Midcontinent Communications and Midcontinent Finance Corp. priced an upsized $125 million add-on to their 6 7/8% senior notes due Aug. 15, 2023 (B3/B) at 107.375 to yield 4.486% on Tuesday, according to a syndicate source.
The issue size was increased from $100 million.
The reoffer price came at the rich end of price talk in the 107.25 area.
SunTrust Robinson Humphrey Inc. was the left bookrunner. Wells Fargo Securities LLC and RBC Capital Markets LLC were the joint bookrunners.
The Sioux Falls, S.D.-based regional cable operator plans to use the proceeds, along with its upsized revolver and its incremental term loan, to refinance its 6¼% notes due 2021. The additional proceeds resulting from the $25 million upsizing of the deal will be used to pay down revolver debt.
| Issuers: | Midcontinent Communications and Midcontinent Finance Corp.
|
| Face amount: | $125 million, increased from $100 million
|
| Proceeds: | $134,218,750
|
| Maturity: | Aug. 15, 2023
|
| Security description: | Add-on to 6 7/8% senior notes due Aug. 15, 2023
|
| Left bookrunner: | SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | Wells Fargo Securities LLC, RBC Capital Markets LLC
|
| Senior co-manager: | TD Securities
|
| Co-managers: | U.S. Bancorp Investments Inc., Barclays, BNP Paribas Securities Corp., MUFG
|
| Coupon: | 6 7/8%
|
| Price: | 107.375
|
| Yield to worst: | 4.486%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 105.156
|
| Equity clawback: | 40% at 106.875 until Aug. 15, 2018
|
| Trade date: | July 18
|
| Settlement date: | Aug. 1 with accrued interest
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 107.25 area
|
| Marketing: | Quick to market
|
| Original issue: | $300 million priced at par in August 2015
|
| Previous add-on: | $125 million priced at 105.5 to yield 5.55% on Nov. 1, 2016
|
| Total issue size: | $550 million
|
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