By Paul A. Harris
Portland, Ore., Jan. 12 – CSC Holdings, LLC priced an upsized $1 billion issue of 10-year senior guaranteed notes (Ba2/BB-) at par to yield 5 3/8% on Friday, according to a syndicate source.
The issue size was increased from $500 million.
The yield printed at the tight end of yield talk in the 5½% area. Early guidance was 5½% to 5¾%.
The overall size of the New York-based cable operator's debt financing backing the spinoff of Altice USA from Altice NV grew to $2.5 billion from $1 billion with the increase of the concurrent term loan to $1.5 billion from $500 million.
Goldman Sachs & Co. was the left bookrunner for the bond offering. J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Credit Agricole CIB were the joint bookrunners.
Proceeds from the bonds and loan, including the upsizes, will be used to refinance $300 million of 7 7/8% senior debentures due February 2018, as well as to refinance all $750 million of the Cablevision 7¾% senior notes due April 2018, and to fund a $1.5 billion dividend to Cablevision, the direct parent of the CSC Holdings, which will in turn use those proceeds to fund a dividend to Altice USA in connection with the spinoff.
| Issuer: | CSC Holdings, LLC
|
| Amount; | $1 billion, increased from $500 million
|
| Maturity: | Feb. 1, 2028
|
| Securities: | Senior guaranteed notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 283 bps
|
| First call: | Feb. 1, 2023 at 102.688
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Roadshow
|
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