Published on 9/6/2012 in the Prospect News High Yield Daily.
New Issue: Starz prices $500 million seven-year senior notes at par to yield 5%
By Paul A. Harris
Portland, Ore., Sept. 6 - Starz, LLC and Starz Finance Corp. priced a $500 million issue of seven-year senior notes (Ba2/BB) at par to yield 5% on Thursday, according to a syndicate source.
The yield printed 12.5 basis points inside of yield talk, which had been set in the 5¼% area.
Joint physical bookrunner SunTrust Robinson Humphrey will bill and deliver. Bank of America Merrill Lynch and Barclays were also joint physical bookrunners.
J.P. Morgan Securities LLC, RBC Capital Markets, RBS Securities Inc. and Scotia Capital are joint bookrunners.
The Rule 144A with registration rights notes come with three years of call protection.
Proceeds will be used to repay debt.
Starz provides premium subscription video programming to multichannel video distributors and develops, produces, acquires and distributes original entertainment content.
| Issuer: | Starz, LLC and Starz Finance Corp.
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2019
|
| Securities: | Senior notes
|
| Bill and deliver: | SunTrust Robinson Humphrey
|
| Joint physical books: | SunTrust, Bank of America Merrill Lynch, Barclays
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets, RBS Securities Inc., Scotia Capital
|
| Senior co-managers: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, SMBC, US Bancorp
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2015, then callable at 102.5
|
| Equity clawback: | 35% until Sept. 15, 2015
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 5¼% area
|
| Marketing: | Roadshow
|
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