By Paul Deckelman
New York, March 23 - Mobile Satellite Ventures priced an upsized $436 million proceeds offering of senior secured discount notes due April 1, 2013 to yield 14%, high yield syndicate sources said Thursday.
The deal came at the high end of talk, which put the yield at 13¾% to 14%.
The Reston, Va.-based provider of mobile satellite communications sold $750 million face amount of the bonds for proceeds of $436.17 million, well up from the originally envisioned $300 million face amount.
The bonds priced at 58.156 to yield 14% to maturity. Interest will be on a payment-in-kind basis until Oct. 1, 2010, and the issue will thereafter be cash pay.
The bonds will be non-callable for the first four years after issue. There is a three-year equity clawback for up to 35% of the issue.
The bonds have not been assigned any ratings.
The new deal priced after a short roadshow that began on March 14, and came to market via Merrill Lynch & Co. and Morgan Stanley, the joint bookrunners, and joint lead manager Jefferies & Co.
The bonds were issued by two company subsidiaries, Mobile Satellite Ventures LP and MSV Finance Co., under Rule 144A, without registration rights. The company plans to use the proceeds for general corporate purposes, working capital, and for construction of its next generation of integrated networks.
| Issuers: | Mobile Satellite Ventures LP, MSV Finance Co.
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| Face amount: | $750 million (upsized from $300 million)
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| Proceeds: | $436,170,000
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| Security description: | Senior secured discount notes
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| Maturity: | April 1, 2013
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| Coupon: | 14% (PIK until Oct 1, 2010, cash after that)
|
| Price: | 58.156
|
| Yield: | 14%
|
| Spread: | 927 basis points
|
| Call schedule: | Non-callable for first four years, from April 1, 2010 at 107, April 1, 2011 at 103.5, April 1, 2012 at par
|
| Equity clawback: | 35% of issue for first three years at par plus accreted value.
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| Bookrunners: | Merrill Lynch, Morgan Stanley
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| Joint lead manager: | Jeffries & Co.
|
| Settlement: | March 30 (T+5)
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| Ratings: | NR/NR
|
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