Published on 9/3/2014 in the Prospect News High Yield Daily.
New Issue: Gannett $675 million two-part notes price at discounts
By Paul A. Harris
Portland, Ore., Sept. 3 – Gannett Co., Inc. priced $675 million of senior notes (Ba1/BB+/) in two discounted tranches on Wednesday, according to a syndicate source.
The deal included a $350 million tranche of 4 7/8% seven-year notes, which priced at 98.351 to yield 5 1/8%. The yield printed at the tight end of yield talk in the 5¼% area.
In addition the company priced $325 million of 5½% 10-year notes at 99.038 to yield 5 5/8%. The yield printed at the tight end of yield talk in the 5¾% area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, RBC Capital Markets, MUFG, Mizuho Securities, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.
The McLean, Va.-based media and marketing solutions company plans to use the proceeds to help fund the acquisition of full ownership of Cars.com, a Chicago-based digital company in the automotive space.
Proceeds will be escrowed until the acquisition closes.
| Issuer: | Gannett Co., Inc.
|
| Face amount: | $675 million
|
| Proceeds: | $667 million
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, RBC Capital Markets, MUFG, Mizuho Securities, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Fifth Third PNC Capital Markets, Capital One, TD Securities, Comerica Securities, SMBC Nikko, RBS Securities Inc., Raymond James & Associates
|
| Trade date: | Sept. 3
|
| Settlement date: | Sept. 8
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Seven-year notes
|
| Face amount: | $350 million
|
| Proceeds: | $345 million
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 4 7/8%
|
| Price: | 98.351
|
| Yield: | 5 1/8%
|
| Spread: | 301 bps
|
| First call: | Sept. 15, 2017 at 102.438
|
| Price talk: | 5¼% area
|
|
|
| 10-year notes
|
| Face amount: | $325 million
|
| Proceeds: | $322 million
|
| Maturity: | Sept. 15, 2024
|
| Coupon: | 5½%
|
| Price: | 99.038
|
| Yield: | 5 5/8%
|
| Spread: | 321 bps
|
| First call: | Sept. 15, 2019 at 102.75
|
| Price talk: | 5¾% area
|
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