By Paul A. Harris
St. Louis, Dec. 20 - Global Crossing (UK) Finance plc priced an upsized $405 million equivalent transaction involving two tranches of 10-year senior secured notes (Caa1/B-) on Monday, according to an informed source.
Goldman Sachs & Co. had the books for the Rule 144A/Regulation S with registration rights issuance.
The company sold $200 million notes at 98.514 with a 10¾% coupon to yield 11%. Price talk was the 11% area.
In addition Global Crossing sold £105 million notes at 98.575 with an 11¾% coupon to yield 12%. The notes priced at talk which had the sterling tranche coming about 100 basis points behind the dollar tranche.
The proceeds will be used to repay $75 million of the existing debt of a U.S. subsidiary of Global Crossing Ltd. and to fund the long-term liquidity requirements of Global Crossing Ltd. and its subsidiaries worldwide.
The combined issuance was increased from $350 million.
The issuer is a Florham Park, N.J., telecommunications solutions provider over an integrated global IP-based network.
| Issuer: | Global Crossing (UK) Finance plc
|
| Amount: | $405 million equivalent (increased from $350 million equivalent)
|
| Maturity: | Dec. 15, 2014
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| Security description: | Senior secured notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Trade date: | Dec. 20
|
| Settlement date: | Dec. 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
|
|
| U.S. dollar tranche
|
| Amount: | $200 million
|
| Coupon: | 10¾%
|
| Price: | 98.514
|
| Yield: | 11%
|
| Spread: | 682 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until Dec. 15, 2009, then callable at 105.375, 103.583, 101.792, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2007 for 35% at 110.75
|
| Price talk: | 11% area
|
|
|
| Sterling tranche
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| Amount: | £105 million
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| Coupon: | 11¾%
|
| Price: | 98.575
|
| Yield: | 12%
|
| Spread: | 754 basis points
|
| Call features: | Make-whole call at Gilts plus 50 basis points until Dec. 15, 2009, then callable at 105.875, 103.917, 101.958, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2007 for 35% at 111.75
|
| Price talk: | 100 basis points area behind the dollar tranche
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