Published on 9/26/2013 in the Prospect News High Yield Daily.
New Issue: Gannett ups two-part deal to $1.25 billion, prices notes at discounts
By Paul A. Harris
Portland, Ore., Sept. 26 - Gannett Co., Inc. priced an upsized $1.25 billion two-part offering of senior notes (Ba1/BB/) in a Thursday drive-by, according to a market source.
The overall deal size was increased from $1 billion.
The sale included a $600 million tranche of 5 1/8% six-year notes, which priced at 98.724 to yield 5 3/8%, and a $650 million tranche of 6 3/8% 10-year notes, which priced at 99.086 to yield 6½%.
Both tranches were upsized from $500 million.
Both yields printed on top of yield talk.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. were the joint bookrunners for the quick-to-market transaction.
The McLean, Va.-based media and marketing solutions company plans to use the proceeds to fund the merger with Belo Corp. and for general corporate purposes.
| Issuer: | Gannett Co., Inc.
|
| Amount: | $1.25 billion, upsized from $1 billion
|
| Proceeds: | $1,236,000,000
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | PNC Capital Markets LLC, Fifth Third Securities Inc., SMBC, Raymond James, Capital One Securities, Comerica Securities, RBS Securities Inc., TD Securities (USA) LLC
|
| Trade date: | Sept. 26
|
| Settlement date: | Oct. 3
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Six-year notes
|
| Face amount: | $600 million
|
| Proceeds: | $592 million
|
| Maturity: | Oct. 15, 2019
|
| Coupon: | 5 1/8%
|
| Price: | 98.724
|
| Yield: | 5 3/8%
|
| Spread: | 360 bps
|
| First call: | Oct. 15, 2016 at 102.563
|
| Price talk: | 5 3/8%
|
|
|
| 10-year notes
|
| Face amount: | $650 million
|
| Proceeds: | $644 million
|
| Maturity: | Oct. 15, 2023
|
| Coupon: | 6 3/8%
|
| Price: | 99.086
|
| Yield: | 6½%
|
| Spread: | 386 bps
|
| First call: | Oct. 15, 2018 at 103.188
|
| Price talk: | 6½%
|
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