Published on 9/18/2014 in the Prospect News High Yield Daily.
New Issue: SFX Entertainment upsizes to $65 million, prices tap of 9 5/8% notes at par to yield 9.617%
By Paul A. Harris
Portland, Ore., Sept. 18 – SFX Entertainment, Inc. priced an upsized $65 million add-on to its 9 5/8% senior secured second-lien notes due Feb. 1, 2019 (Caa1/B-/) at par to yield 9.617% on Thursday, according to a market source.
The reoffer price came on top of price talk.
An additional $10 million of notes with identical terms are being issued to an entity controlled by Robert F.X. Sillerman.
Barclays was the lead left bookrunner. Deutsche Bank Securities Inc., Jefferies LLC and UBS Securities LLC were the joint bookrunners.
The New York-based producer of live events and entertainment content plans to use the proceeds for general corporate purposes, including repayment of the $20 million outstanding under its revolver, as well as for funding acquisitions.
| Issuer: | SFX Entertainment, Inc.
|
| Amount: | $65 million, increased from $50 million ($10 million of notes with identical terms will be issued to an entity controlled by Robert F.X. Sillerman)
|
| Maturity: | Feb. 1, 2019
|
| Security description: | Add-on to senior secured second-lien notes due Feb. 1, 2019
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., Jefferies LLC, UBS Securities LLC
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield to worst: | 9.617%
|
| Spread: | 789 bps
|
| First call: | Feb. 1, 2016 at 107.219
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 24 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Par
|
| Marketing: | Quick to market
|
| Original issue: | $220 million issue priced at par on Jan. 31, 2014
|
| Fungibility: | Add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $295 million
|
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