By Paul A. Harris
Portland, Ore., Feb. 27 - Sprint Nextel Corp. priced $2 billion of high-yield notes in two tranches on Monday, according to a syndicate source.
The deal included a $1 billion tranche of eight-year junior guaranty unsecured notes (Ba3/BB-/), which priced at par to yield 7%. The yield printed at the tight end of 7% to 7 1/8% price talk.
In addition the company priced a $1 billion tranche of five-year senior notes (B3/B+/) at par to yield 9 1/8%, also at the tight end of price talk, which was set in the 9¼% area.
Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market deal.
The wireless operator plans to use the proceeds for general corporate purposes, which may include, among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire.
| Issuer: | Sprint Nextel Corp.
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Senior co-managers: | Scotiabank, Wells Fargo Securities
|
| Co-manager: | Williams Capital Group, LP
|
| Trade date: | Feb. 27
|
| Settlement date: | March 1
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Junior guaranty unsecured notes
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2020
|
| Security description: | Junior guaranty unsecured notes
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 550 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 7% to 7 1/8%
|
|
|
| Senior unsecured notes
|
| Amount: | $1 billion
|
| Maturity: | March 1, 2017
|
| Security description: | Senior unsecured notes
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | 828 bps
|
| Call protection: | Non-callable
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Price talk: | 9¼% area
|
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