By Paul A. Harris
Portland, Ore., July 24 – Midcontinent Communications and Midcontinent Finance Corp. priced an upsized $350 million issue of eight-year senior notes (B3/B) at par to yield 5 3/8% in a Wednesday drive-by, according to market sources.
The issue size was increased from $300 million.
The yield printed at the tight end of yield talk in the 5½% area, and tighter than initial 5½% to 5¾% guidance.
SunTrust Robinson Humphrey Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC and RBC Capital Markets LLC.
The Sioux Falls, S.D.-based provider of cable television, telephone service and high-speed internet access plans to use the proceeds to refinance its 6 7/8% senior notes and its term loan B, both of which mature in 2023. The additional proceeds resulting for the $50 million upsizing of the deal will be used to further repay bank debt.
| Issuer: | Midcontinent Communications and Midcontinent Finance Corp.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Aug. 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | Wells Fargo Securities LLC and RBC Capital Markets LLC
|
| Co-managers: | TD Securities (USA) LLC, Barclays, U.S. Bancorp Investments Inc., BNP Paribas Securities Corp and MUFG
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| First call: | Aug. 15, 2022 at 102.688
|
| Trade date: | July 24
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
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