By Paul A. Harris
Portland, Ore., July 24 – Midcontinent Communications and Midcontinent Finance Corp. priced an upsized $350 million issue of eight-year senior notes (B3/B) at par to yield 5 3/8% in a Wednesday drive-by, according to market sources.
The issue size was increased from $300 million.
The yield printed at the tight end of yield talk in the 5½% area, and tighter than initial 5½% to 5¾% guidance.
SunTrust Robinson Humphrey Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC and RBC Capital Markets LLC.
The Sioux Falls, S.D.-based provider of cable television, telephone service and high-speed internet access plans to use the proceeds to refinance its 6 7/8% senior notes and its term loan B, both of which mature in 2023. The additional proceeds resulting for the $50 million upsizing of the deal will be used to further repay bank debt.
Issuer: | Midcontinent Communications and Midcontinent Finance Corp.
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Amount: | $350 million, increased from $300 million
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Maturity: | Aug. 15, 2027
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Securities: | Senior notes
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Left bookrunner: | SunTrust Robinson Humphrey Inc.
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Joint bookrunners: | Wells Fargo Securities LLC and RBC Capital Markets LLC
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Co-managers: | TD Securities (USA) LLC, Barclays, U.S. Bancorp Investments Inc., BNP Paribas Securities Corp and MUFG
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Coupon: | 5 3/8%
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Price: | Par
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Yield: | 5 3/8%
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First call: | Aug. 15, 2022 at 102.688
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Trade date: | July 24
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Settlement date: | Aug. 7
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Ratings: | Moody's: B3
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| S&P: B
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 5½% area
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Marketing: | Quick to market
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