Published on 9/23/2009 in the Prospect News High Yield Daily.
New Issue: GeoEye upsizes to $400 million, prices 9 5/8% six-year notes at 97.262 to yield 10¼%
By Paul A. Harris
St. Louis, Sept. 23 - GeoEye, Inc. priced an upsized $400 million issue of 9 5/8% six-year senior secured notes due 2015 (B1/B/) at 97.262 to yield 10¼% on Wednesday, according to an informed source.
The yield printed at the tight end of the 10¼% to 10½% yield talk. The issue price was in line with the 2 points to 3 points of original issue discount talk.
J.P. Morgan Securities Inc. and Bank of America Merrill Lynch were joint bookrunners for the deal, which was upsized from $350 million.
Proceeds will be used to fund the previously announced tender for the company's $250 million of floating-rate senior secured notes due 2012 and for general corporate purposes, which may include funding a portion of the costs of constructing a new high-resolution satellite.
The Dulles, Va.-based company is a provider of imagery, imagery information products and image processing services.
| Issuer: | GeoEye, Inc.
|
| Face amount: | $400 million, increased from $350 million
|
| Proceeds: | $389.048 million (approximate)
|
| Maturity: | Oct. 1, 2015
|
| Security description: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch
|
| Co-managers: | Jeffries & Co., Deutsche Bank Securities Inc., Dougherty & Co. LLC, Canaccord Adams, SMH Capital
|
| Coupon: | 9 5/8%
|
| Price: | 97.262
|
| Yield: | 10¼%
|
| Spread: | 746 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2013, then callable at 104.813, par on and after Oct. 1, 2014
|
| Equity clawback: | 35% at 109.625 until Oct. 1, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 23
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| Settlement date: | Oct. 9
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| Ratings: | Moody's: B1
|
| Standard & Poor's: B
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| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10¼% to 10½% with 2 to 3 points OID
|
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