By Paul Deckelman
New York, Aug. 9 - Sprint Nextel Corp. priced $1.5 billion of eight-year notes (B3/B+) on Thursday, high-yield syndicate sources said.
That quick-to-market issue priced at par to yield 7%, in line with price talk seeing a yield in the 7% area.
The offering was originally announced as a two-part transaction to consist of the eight-year notes as well as a tranche of 10-year bonds, but the latter portion was ultimately dropped before the pricing.
The deal was brought to market by joint book-running managers J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co.
The senior co-managers on the deal were Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC.
Williams Capital Group, LP acted as a co-manager on the transaction.
The paper is being sold via an offering registered with the Securities and Exchange Commission.
The notes are not callable other than via a make-whole call at 50 basis points over Treasuries.
Holders can put the bonds back to the company at a price of 101 plus accrued interest in the event of a change of control, as defined by the bonds' indenture.
Sprint, based in Overland Park, Kan., is the third-largest U.S. wireless service provider behind Verizon Wireless and AT&T Mobility. It plans to use the deal's net 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 Corp. - about 48% owned by Sprint - and its subsidiary, Clearwire Communications LLC.
| Issuer: | Sprint Nextel Corp.
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Goldman Sachs & Co.
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC.
|
| Co-manager: | Williams Capital Group, LP
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 568 bps vs. 2 5/8% Treasury due Aug. 15, 2020
|
| Call protection: | Non-callable except for make-whole call at Treasuries plus 50 bps
|
| Put option: | At 101 upon a change of control
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered offering
|
| Price talk: | 7% area
|
| Marketing: | Quick-to-market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
