Published on 5/12/2011 in the Prospect News High Yield Daily.
New Issue: EarthLink prices downsized $300 million 8 7/8% eight-year notes at 96.555 to yield 9½%
By Paul A. Harris
Portland, Ore., May 12 - EarthLink, Inc. priced a downsized $300 million issue of 8 7/8% eight-year senior notes (B2/B-/) at 96.555 to yield 9½% on Thursday, according to an informed source.
The yield printed at the wide end of the 9¼% to 9½% price talk.
Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were the joint bookrunners for the issue, which was downsized from $400 million.
The Atlanta-based internet service provider plans to use the proceeds to redeem its 3¼% convertible notes and for general corporate purposes.
Issuer: | EarthLink, Inc.
|
Face amount: | $300 million, decreased from $400 million
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Proceeds: | $289,665,000
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Maturity: | May 15, 2019
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Securities: | Senior notes
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Bookrunners: | Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC
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Coupon: | 8 7/8%
|
Price: | 96.555
|
Yield: | 9½%
|
Spread: | 671 bps
|
Call features: | Callable on May 15, 2015 at 104.438, 102.219, par on and after May 15, 2017
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Equity clawback: | 35% at 108.875 until May 15, 2014
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Trade date: | May 12
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Settlement date: | May 17
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Ratings: | Moody's: B2
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| Standard & Poor's: B-
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Distribution: | Rule 144A with registration rights
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Price talk: | 9¼% to 9½%
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Marketing: | Quick to market
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