By Paul A. Harris
Portland, Ore., Feb. 2 – Uniti Group priced an upsized $2.6 billion issue of five-year senior secured notes (B2/B/BB+) at par to yield 10½% on Thursday, according to market sources.
The issue size increased from $1.75 billion.
The yield printed at the tight end of the 10½% to 10¾% yield talk. Initial guidance was in the 11% area.
The deal was a blowout, playing to $7 billion of orders, according to a trader, who added that the notes broke to 101¼ bid, 101 5/8 offered.
Timing was accelerated. When the offering was announced on Thursday morning it had been expected to remain in the market until Friday.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities (USA) LLC.
The notes were sold via Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC.
The Little Rock, Ark.-based company plans to use the proceeds, including the incremental proceeds resulting from the $850 million upsize of the deal, to pay off its 7 7/8% senior secured notes due February 2025.
Uniti Group is an internally managed real estate investment trust engaged in the acquisition and construction of mission critical communications infrastructure.
| Issuers: | Uniti Group LP, Uniti Fiber Holdings Inc., Uniti Group Finance 2019 Inc. and CSL Capital, LLC
|
| Amount: | $2.6 billion, increased from $1.75 billion
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| Issue: | Senior secured notes
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| Maturity: | Feb. 15, 2028
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and TD Securities (USA) LLC
|
| Coupon: | 10½%
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| Price: | Par
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| Yield: | 10½%
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| Spread: | 701 bps
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| Call features: | Callable after Sept. 15, 2025 at 105.25, after March 15, 2026 at 102.625, March 15, 2027 and thereafter at par
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| Special call: | 10% of notes callable annually at 103 during non-call period
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| Trade date: | Feb. 2
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| Settlement date: | Feb. 14
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| Ratings: | Moody's: B2
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| S&P: B
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 10½% to 10¾%
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| Marketing: | Drive-by
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