By Paul Deckelman
New York, March 24 - Japan's eAccess Ltd. priced an upsized two-part offering (Ba3/BB/) of seven-year senior notes on Thursday, according to high-yield syndicate sources.
The Tokyo-based provider of mobile broadband and voice services priced $420 million of senior notes, up from an initially planned $400 million - and priced €200 million of euro-denominated paper.
The dollar tranche priced at par to yield 8¼%, in line with price talk which circulated in the financial markets on Wednesday. The euro tranche priced at par to yield 8 3/8%, also in line with talk envisioning the yield on the euro-denominated notes 12.5 basis points above the dollar bonds' yield.
UBS Investment Bank was the lead left bookrunner for the Rule 144A for life and Regulation S deal. ING Financial Markets LLC and Credit Agricole CIB were the joint bookrunners.
The bonds carry four years of call protection.
eAccess began shopping the bond deal around to potential investors on March 10 - ironically, the day before Japan was hit with a massive earthquake, followed by an equally catastrophic tsunami. The disaster did not dissuade the company from going forward with the bond deal, and it shopped the transaction around to investors in the United States and Europe.
eAccess plans to use the new-deal proceeds, together with borrowings under a new senior secured credit facility, to repay and terminate its old credit facilities; the bond-deal proceeds are to be escrowed pending the funding under the new credit facility, which is expected to take place on March 31.
| Issuer: | eAccess Ltd.
|
| Securities: | Senior notes
|
| Maturity: | April 1, 2018
|
| Bookrunners: | UBS Investment Bank, ING Financial Markets LLC, Credit Agricole CIB
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Trade date: | March 24
|
| Settlement date: | April 1
|
| Distribution: | Rule 144A for life, Regulation S
|
| Marketing: | Roadshow (deal surfaced March 10)
|
|
|
| Dollar tranche
|
| Amount: | $420 million, upsized from $400 million
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 548.3 bps over 2¾% U.S. Treasury due Feb. 28, 2018
|
| Call features: | Make-whole call until April 1, 2015; then callable at 104.125, 102.063 and 101.031
|
| Equity clawback: | Until April 1, 2014 for 35% of the notes at 108.25
|
| Price talk: | 8¼% area
|
|
|
| Euro tranche
|
| Amount: | €200 million
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 547.8 bps over 4% British treasury issue due Jan. 4, 2018
|
| Call features: | Make-whole call until April 1, 2015; then callable at 104.188, 102.094 and 101.047
|
| Equity clawback: | Until April 1, 2014 for 35% of the notes at 108.375
|
| Price talk: | 12.5 bps over yield on companion dollar-denominated bonds
|
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