By Paul A. Harris
Portland, Ore., March 14 - Mobile Challenger Intermediate Group SA, the parent of Switzerland's Sunrise Communications Holdings SA, priced €518 million equivalent of six-year senior PIK toggle notes (B3/B-/B-) in a restructured dual-currency deal on Thursday, according to a market source.
The deal, in tranches sized at €275 million and CHF 300 million, priced with a cash coupon of 8¾% at 99.5 to yield 8.859%. The coupon steps up by 75 basis points, to 9½%, in the event that the issuer elects to make an in-kind coupon payment.
The coupon came at the tight end of the 8¾% to 9% coupon talk. The reoffer price came in line with discount talk that specified up to 1 point of original issue discount.
A planned dollar-denominated tranche was withdrawn.
Global coordinator Deutsche Bank will bill and deliver. Goldman Sachs was also a global coordinator.
UBS, BNP Paribas, Credit Suisse and Morgan Stanley were the joint bookrunners.
The issuer will be required to make interest payments in cash if its restricted payments capacity and minimum cash requirements are met.
The Zurich-based integrated telecommunications services provider plans to use the proceeds to refinance preferred equity certificates.
| Issuer: | Mobile Challenger Intermediate Group SA, the parent of Sunrise Communications Holdings SA
|
| Amount: | €518 million equivalent, increased from €500 million equivalent
|
| Euro tranche: | €275 million
|
| Swiss franc tranche: | CHF 300 million
|
| Dollar tranches: | Withdrawn
|
| Maturity: | March 15, 2019
|
| Securities: | Senior PIK toggle notes
|
| Joint global coordinators: | Deutsche Bank (bill and deliver), Goldman Sachs
|
| Joint bookrunners: | UBS, BNP Paribas, Credit Suisse and Morgan Stanley
|
| Cash coupon: | 8¾%
|
| PIK coupon: | 9½%
|
| Price: | 99.5
|
| Yield: | 8.859%
|
| First call: | Sept. 15, 2014 at 102
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾% to 9% with an original issue discount of up to 1 point
|
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