Published on 7/29/2003 in the Prospect News High Yield Daily.
New Issue: Eircom, Valentia price €1.05 billion notes in three tranches
By Paul A. Harris
St. Louis, July 29 - Valentia UPC and Eircom Funding UPC priced €1.05 billion equivalent in three tranches of high-yield notes Tuesday, according to an informed source.
Valentia sold €550 million of senior notes due Aug. 15, 2013 (Ba3/BB+) at par to yield 7¼%. Price talk was 7¼%-7½%. The tranche was increased from €500 million.
Deutsche Bank Securities was the bookrunner.
Eircom Funding sold €285 million and $250 million of senior subordinated notes due Aug. 15, 2013 (B1/BB+) at par to yield 8¼%. Price talk was 8¼%-8½%.
Deutsche Bank Securities, Barclays Capital and Citigroup were joint bookrunners.
Proceeds will be used to repay debt.
The issuer is an Irish telecommunications company.
Euro senior tranche
| Issuer: | Valentia UPC
|
| Amount: | €550 million (increased from €500 million)
|
| Maturity: | August 15, 2013
|
| Security description: | Senior notes
|
| Bookrunner: | Deutsche Bank Securities
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 317 basis points
|
| Call features: | Callable on Aug. 15, 2008 at 103.625, then 102.417, 101.208, declining to par on Aug. 15, 2011 and thereafter
|
| Equity clawback: | Until Aug. 1, 2006 for 35% at 107.25
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Price talk: | 7¼%-7½%
|
| Settlement: | Aug. 7
|
|
|
| Euro subordinated tranche
|
| Issuer: | Eircom Funding UPC |
|
| Amount: | €285 million
|
| Maturity: | August 15, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Deutsche Bank Securities, Barclays Capital, Citigroup
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 417 basis points
|
| Call features: | Callable on Aug. 15, 2007 at 104.125, 102.063, declining to par on Aug. 15, 2009 and thereafter
|
| Equity clawback: | Until Aug. 15, 2006 for 35% at 108.25
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB+
|
| Price talk: | 8¼%-8½%
|
| Settlement: | Aug. 7
|
|
|
| Dollar subordinated tranche
|
| Issuer: | Eircom Funding UPC
|
| Amount: | $250 million
|
| Maturity: | August 15, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Deutsche Bank Securities, Barclays Capital, Citigroup
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 393 basis points
|
| Call features: | Callable on Aug. 15, 2007 at 104.125, 102.063, declining to par on Aug. 15, 2009 and thereafter
|
| Equity clawback: | Until Aug. 15, 2006 for 35% at 108.25
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB+
|
| Price talk: | 8¼%-8½%
|
| Settlement: | Aug. 7
|
|
|
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