By Cristal Cody
Prospect News, Aug. 9 - Postmedia Network Inc. sold C$250 million of five-year senior secured first-lien notes (Ba3/B+/) on Thursday at par to yield 8¼%, an informed bond source said.
The notes due Aug. 16, 2017 had been talked on Wednesday in the 8¼% yield area.
The issue priced as a private placement in Canada and under Regulation S and Rule 144A.
Scotia Capital Inc. and Morgan Stanley were the joint bookrunners. Co-managers were BMO Capital Markets Corp., CIBC World Markets Inc. and RBC Capital Markets Corp.
The deal's guarantors are Postmedia Network Canada Corp. and all existing and future restricted subsidiaries of the issuer.
The notes are non-callable for three years.
The issue has a 101% change-of-control put and an equity clawback for up to 35% of the original amount per year in the first three years at par plus the coupon.
The notes have a Canadian call at 100 basis points over the Government of Canada benchmark and a special call for up to 5% of the original amount per year in the first three years at 103%.
The bonds may be redeemed in 2015 at par plus ¾ the coupon, in 2016 at par plus ½ the coupon and in 2017 and thereafter at par.
Proceeds will be used to repay debt under the company's existing term loan facility.
The company, a subsidiary of Postmedia Network Canada Corp., is a Toronto-based newspaper publisher.
| Issuer: | Postmedia Network Inc.
|
| Guarantors: | Postmedia Network Canada Corp. and all existing and future restricted subsidiaries of the issuer
|
| Amount: | C$250 million
|
| Maturity: | Aug. 16, 2017
|
| Securities: | Senior secured first-lien notes
|
| Bookrunners: | Scotia Capital Inc., Morgan Stanley
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Inc., RBC Capital Markets Corp.
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Call feature: | Non-callable for three years
|
| Put option: | 101%
|
| Canadian call: | 100 bps over Government of Canada benchmark
|
| Special call: | Up to 5% of the original amount per year in the first three years at 103%
|
| Redemption: | 2015 at par plus ¾ the coupon; 2016 at par plus ½ the coupon; 2017 and thereafter at par
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A, Regulation S, Canada
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
|
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