Published on 3/17/2010 in the Prospect News High Yield Daily.
New Issues: QVC sells upsized $1 billion offering of seven-, 10.5-year notes
By Paul A. Harris
St. Louis, March 17 - QVC, Inc. doubled the size of its Wednesday drive-by deal to $1 billion from $500 million and placed two tranches of senior secured first-lien notes (Ba2/BB+) at par, according to an informed source.
The company priced $500 million of 7 1/8% seven-year notes at the tight end of the 7 1/8% to 7¼% price talk and $500 million of 7 3/8% 10.5-year notes also at the tight end of the 7 3/8% to 7½% price talk.
The West Chester, Pa.-based multimedia retailer doubled both tranches, each of which originally hit the market sized at $250 million.
J.P. Morgan Securities Inc., Barclays Capital Inc., Wells Fargo Securities, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole CIB, Morgan Stanley & Co. Inc., RBS Securities Inc. and Scotia Capital were the joint bookrunners.
Co-managers were BNP Paribas Securities Corp., Daiwa Securities America Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank.
Proceeds will be used to repay bank debt.
| Issuer: | QVC, Inc.
|
| Amount: | $1 billion, increased from $500 million
|
| Security description: | Senior secured first-lien notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Barclays Capital Inc., Wells Fargo Securities, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Agricole CIB, Morgan Stanley & Co. Inc., RBS Securities Inc., Scotia Capital
|
| Co-managers: | BNP Paribas Securities Corp., Daiwa Securities America Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., UBS Investment Bank
|
| Trade date: | March 17
|
| Settlement date: | March 23
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Seven-year notes
|
| Amount: | $500 million, increased from $250 million
|
| Maturity: | April 15, 2017
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 405 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until April 15, 2013, then callable at a premium
|
| Equity clawback: | 35% at 107.125 until April 15, 2013
|
| Change-of-control put: | 101%
|
| Price talk: | 7 1/8% to 7¼%
|
|
|
| 10.5-year notes
|
| Amount: | $500 million, increased from $250 million
|
| Maturity: | Oct. 15, 2020
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 374 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until April 15, 2015, then callable at a premium
|
| Equity clawback: | 35% at 107.375 until April 15, 2013
|
| Change-of-control put: | 101%
|
| Price talk: | 7 3/8% to 7½%
|
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