By Rebecca Melvin
New York, April 11 - Virgin Media Inc. priced $1 billion of eight-year convertible senior notes at par late Thursday to yield 6.5% with an initial conversion premium of 55.38%, according to a company news release.
There is a $150 million over-allotment option.
The notes priced at the rich end talk for a coupon, which was at 6.5% to 7%, and beyond the rich end of talk for the initial conversion premium, which was 47.5% to 52.5%.
Goldman Sachs and Deutsche Bank are joint bookrunners of the Rule 144A deal.
The notes are non-callable. There is standard takeover and dividend protection, and there is contingent conversion, subject to a 120% hurdle, as well as net-share settlement.
Virgin Media intends to use proceeds combined with existing cash reserves to prepay a portion of its outstanding A and B loans under its senior credit facilities.
Virgin Media expects to prepay about £261 million of the A tranche currently scheduled for payment in September 2009, and about £243 million of the B tranche currently scheduled for repayment in September 2012.
New York-based Virgin Media provides television, broadband, fixed-line telephone, and mobile telephone services in the United Kingdom.
| Issuer: | Virgin Media Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | Nov. 15, 2016
|
| Bookrunners: | Goldman Sachs and Deutsche Bank
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 55.38%
|
| Conversion rate: | 52.0291
|
| Conversion price: | $19.22
|
| Call: | Non-callable
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Contingent conversion: | Yes, subject to a 120% hurdle
|
| Pricing date: | April 10
|
| Settlement date: | April 16
|
| Distribution: | Rule 144A
|
| Price talk: | 6.5%-7%, up 47.5%-52.5%
|
| Stock symbol: | Nasdaq: VMED
|
| Stock price: | $12.37 at close April 10
|
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