New Issue: Starz upsizes to $175 million, prices tap of 5% notes due 2019 at 102 to yield 4.513%

By Paul A. Harris

Portland, Ore., Feb. 5 - Starz, LLC and Starz Finance Corp. priced an upsized $175 million add-on to their 5% senior notes Sept. 15, 2019 (Ba2/BB/) at 102 to yield 4.513% on Tuesday, according to a syndicate source.

The reoffer price came on top of price talk.

SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch and Barclays were the joint bookrunners for the add-on, which was upsized from $150 million.

The Meridian, Colo.-based company plans to use the proceeds 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.
Face amount:	$175 million, increased from $150 million
Proceeds:	$178.5 million
Maturity:	Sept. 15, 2019
Security description:	Add-on to senior notes Sept. 15, 2019
Bookrunners:	SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Barclays
Coupon:	5%
Price:	102
Yield to worst:	4.513%
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:	Feb. 5
Settlement date:	Feb. 8 with accrued interest
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Distribution:	Rule 144A with registration rights
Price talk:	102 area
Marketing:	Quick to market
Original issue:	$500 million priced at par on Sept. 6, 2012
Total issue size:	$675 million

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