By Paul A. Harris
Portland, Ore., March 11 - LBI Media, Inc. priced a downsized and restructured $220 million issue of 9¼% eight-year first-lien senior secured notes (B2/B-/) at 98.594 to yield 9½% on Friday, according to an informed source.
The yield printed on top of the yield talk. The reoffer price came in line with discount talk of 1 to 2 points.
In a restructuring of the deal, a special call provision allowing the issuer to redeem 10% of notes annually at 103 during the non-call period was removed. The notes come with standard call features, with the first call at 104.625 on April 15, 2015.
Credit Suisse Securities, Macquarie Capital and Wells Fargo Securities were the joint bookrunners for the deal, which was downsized from $240 million.
Proceeds will be used to repay bank debt. Due to the downsizing, the company's 11% senior discount notes due 2013 will no longer be redeemed. The company states that it has $28.7 million of pro forma cash on balance sheet and a $50 million undrawn revolver that will be available to pay off 11% discount notes beginning in October 2012.
LBI Media is a Burbank, Calif., owner and operator of Spanish-language radio and television stations.
| Issuer: | LBI Media, Inc.
|
| Face amount: | $220 million, decreased from $240 million
|
| Proceeds: | $217 million (approximate)
|
| Maturity: | April 15, 2019
|
| Securities: | First-lien senior secured notes
|
| Bookrunners: | Credit Suisse Securities (USA), Macquarie Capital, Wells Fargo Securities
|
| Coupon: | 9¼%
|
| Price: | 98.594
|
| Yield: | 9½%
|
| Spread: | 650 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at 104.625, 102.313, par on and after April 15, 2017 (A special call allowing issuer to redeem 10% of notes annually at 103 during the non-call period was removed in a restructuring of the deal)
|
| Trade date: | March 11
|
| Settlement date: | March 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 9½% yield with 1-2 points OID
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
