By Paul A. Harris
Portland, Ore., Oct. 20 – Sprint priced $3.5 billion of 3.36% senior secured notes (expected ratings Baa2//BBB) at 99.99834 to yield 3.375% on Thursday, according to a syndicate source.
The deal was launched earlier in the session with a 3.375% yield and a target price of par.
The yield printed at the tight end of yield talk in the 3.5% area. Early guidance was in the 4% area.
The notes have an anticipated repayment date of Sept. 20, 2021 and a legal final maturity date of March 20, 2023.
The deal, which was priced off of a $7 billion shelf, came in a joint effort on the part of the high-yield, investment-grade and structured products syndicate desks.
Earlier in the week Sprint consolidated the securitization deal into a single tranche, withdrawing previously planned tranches of class A-2 seven-year notes and class A-3 10-year notes.
Timing was accelerated, as a previous schedule had the roadshow running through the entire Oct. 17 week.
Goldman Sachs & Co. was the global coordinator and left lead bookrunner. J.P. Morgan Securities LLC and Mizuho Securities were the joint lead bookrunners.
The notes are secured by broadband spectrum leases.
The Overland Park, Kan.-based wireless telecommunications services and internet carrier holding company plans to use the proceeds for general corporate purposes, which may include retirement of debt and network densification and optimization.
The issuing entities are Sprint Spectrum Co. LLC, Sprint Spectrum Co. II LLC and Sprint Spectrum Co. III LLC.
| Issuers: | Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum
|
| Face amount: | $3.5 billion
|
| Proceeds: | $3,499,941,900
|
| Anticipated repayment date: | Sept. 20, 2021
|
| Legal final maturity date: | March 20, 2023
|
| Securities: | Senior secured notes
|
| Global coordinator: | Goldman Sachs & Co.
|
| Bookrunners: | Goldman Sachs (left lead), J.P. Morgan Securities LLC, Mizuho Securities
|
| Coupon: | 3.36%
|
| Price: | 99.99834
|
| Yield: | 3.375%
|
| Spread: | 240.7 bps
|
| Scheduled amortization: | One year interest only, 25% per annum thereafter
|
| Call protection: | Four years
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 27
|
| Expected ratings: | Moody's: Baa2
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 3.5% area
|
| Marketing: | Roadshow
|
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