Published on 11/21/2005 in the Prospect News Emerging Markets Daily and Prospect News High Yield Daily.
New Issue: Avago prices $1 billion bonds in three tranches
By Paul A. Harris
St. Louis, Nov. 21 - Avago Technologies Finance Pte. Ltd. priced $1 billion of high-yield bonds in three tranches on Monday, according to a syndicate source.
The Singapore-based company priced a $500 million issue of eight-year senior fixed-rate notes (B3/B) at par to yield 10 1/8%, 12.5 basis points beyond the wide end of the 9¾% to 10% price talk.
Avago also priced a $250 million issue of 7.5-year senior floating-rate notes (B3/B) at par to yield three month Libor plus 550 basis points, on the wide end of the Libor plus 525 to 550 basis points price talk.
In addition the company priced a $250 million issue of 10-year senior subordinated notes (Caa2/CCC+) at par to yield 11 7/8%, 25 basis points beyond the wide end of the 11½% area price talk.
Lehman Brothers, Citigroup and Credit Suisse First Boston were joint bookrunners for the Rule 144A/Regulation S transaction.
The proceeds will be used to help fund the buyout of Agilent Technologies Inc.'s semiconductor unit by Kohlberg Kravis Roberts & Co. and Silver Lake Partners.
| Issuer: | Avago Technologies Finance Pte. Ltd.
|
| Co-issuers: | Avago Technologies U.S. Inc and Avago Technologies Wireless
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| Amount: | $1 billion
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| Bookrunners: | Lehman Brothers, Citigroup, Credit Suisse First Boston
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| Trade date: | Nov. 21
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| Settlement date: | Dec. 1
|
|
|
| Senior fixed-rate notes
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| Amount: | $500 million
|
| Maturity: | Dec. 1, 2013
|
| Coupon: | 10 1/8%
|
| Price: | Par
|
| Yield: | 10 1/8%
|
| Spread: | 566 basis points
|
| Call features: | Callable with make-whole call prior to Dec. 1, 2009, then callable at 105.063, 102.531, par on and after Dec. 1, 2011
|
| Equity clawback: | Until Dec. 1, 2008 for up to 35% at 110.125
|
| Designated asset sale clawback: | Until Dec. 1, 2008 for up to 35% of notes with proceeds of designated asset sales at 110.125
|
| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Price talk: | 9¾%-10%
|
|
|
| Senior floating-rate notes
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| Amount: | $250 million
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| Maturity: | June 1, 2013
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| Coupon: | Three month Libor plus 550 basis points
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| Price: | Par
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| Yield: | Three month Libor plus 550 basis points
|
| Call features: | Make-whole call prior to Dec. 1, 2007, then callable at 102.0, 101.0, par on and after Dec. 1, 2009
|
| Equity clawback: | Until Dec. 1, 2007 for up to 35% at par plus the applicable interest rate
|
| Designated asset sale clawback: | Until Dec. 1, 2007 for up to 35% of notes with proceeds of designated asset sales at par plus the then applicable interest rate
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Price talk: | Libor plus 525-550 basis points
|
|
|
| Senior subordinated notes
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| Amount: | $250 million
|
| Maturity: | Dec. 1, 2015
|
| Coupon: | 11 7/8%
|
| Price: | Par
|
| Yield: | 11 7/8%
|
| Spread: | 743 basis points
|
| Call features: | Make-whole call until Dec. 1, 2010, then callable at 103.958, 101.979, par on and after Dec. 1, 2013
|
| Equity clawback: | Until Dec. 1, 2008 for up to 35% at 111.875
|
| Designated asset sale clawback: | Until Dec. 1, 2008 for up to 35% of notes with proceeds of designated asset sales at 111.875
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 11½% area
|
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