New Issue: Global Crossing sells upsized $750 million 12% six-year notes at 97.944 to yield 12½%

By Paul A. Harris

St. Louis, Sept. 11 - Global Crossing Ltd. priced an upsized $750 million issue of 12% six-year senior secured notes (B2/B-/) at 97.944 to yield 12½% on Friday, according to an informed source.

The deal was upsized from $650 million.

The yield printed at the tight end of the 12½% to 12¾% yield talk, while the issue price came slightly cheap to discount talk of approximately 2 points.

Goldman Sachs & Co. was the left lead bookrunner for the Rule 144A and Regulation S with registration rights offering. Credit Suisse and J.P. Morgan Securities Inc. were joint bookrunners.

Proceeds will be used to repay the company's existing term loan and to fund the tender for Impsat 9 7/8% notes due 2017.

Global Crossing is a Hamilton, Bermuda-based communications services provider.

Issuer:	Global Crossing Ltd.
Face amount:	$750 million
Proceeds:	$734.58 million
Maturity:	Sept. 15, 2015
Security description:	Senior secured notes
Bookrunners:	Goldman, Sachs & Co., Credit Suisse Securities (USA), LLC, J.P. Morgan Securities Inc.
Co-manager:	Jefferies & Co. Inc.
Coupon:	12%
Price:	97.944
Yield:	12½%
Spread:	990 bps
Call features:	Make-whole until Sept. 15, 2012, then callable at 106.0, 103.0, par on and after Sept. 15, 2014
Equity clawback:	35% at 112.0 until Sept. 15, 2012
Trade date:	Sept. 11
Settlement date:	Sept. 22
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	12½% to 12¾% with approximately two points of OID

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