Liberty's UPC Broadband driving by with $1.25 billion 10.25-year notes, talk 4 5/8% to 4¾%

By Paul A. Harris

Portland, Ore., April 7 – Netherland's-based UPC Broadband Finco BV plans to price a $1.25 billion offering of senior secured notes due July 15, 2031 (existing ratings B1/BB-/BB+) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life notes coming to yield 4 5/8% to 4¾%, a trader said.

BofA Securities, Inc. is the left bookrunner. BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and SG Americas Securities LLC are the joint bookrunners.

The 10.25-year notes become callable after 5.25 years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Proceeds will be used to fund the new Finco Loan to UPC Financing, proceeds from which are intended to be used to redeem the 2027 SPE senior secured notes and for general corporate purposes including repayment of other secured debt.

The UPC Holding Group is comprised of certain subsidiaries of Liberty Global plc. They provide cable TV, Internet and telephone services to Poland, Slovakia and Switzerland, and are headquartered in Amsterdam.

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