By Paul A. Harris
St. Louis, June 17 - Terremark Worldwide, Inc. priced a $420 million issue of 12% eight-year senior secured notes (B2/B-/) at 95.134 to yield 13% on Wednesday, according to an informed source.
The yield priced on top of the 13% yield talk, while the issue price came within the context of price talk specifying 4 to 5 points of original issue discount.
The deal was launched at a size of $400 million. Factoring the discount, gross proceeds come to $399.563 million.
Credit Suisse, Jefferies & Co. and RBC Capital Markets Corp. were the joint bookrunners.
The notes are secured by a first lien on the issuer's and subsidiary guarantors' existing and future assets.
Proceeds will be used to repay existing debt and for general corporate purposes.
The issuer is an information technology company based in Miami.
| Issuer: | Terremark Worldwide, Inc.
|
| Face amount: | $420 million, increased from $400 million
|
| Proceeds: | $399.563 million
|
| Maturity: | June 15, 2017
|
| Security description: | Senior secured notes
|
| Bookrunners: | Credit Suisse, Jefferies & Co., RBC Capital Markets Corp.
|
| Co-managers: | Piper Jaffray & Co., TD Securities (USA) LLC
|
| Coupon: | 12%
|
| Price: | 95.134
|
| Yield: | 13%
|
| Spread: | 959 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until June 15, 2013, then callable at 106.0, 103.0, par on and after June 15, 2015
|
| Equity clawback: | 35% at 112.0 until June 15, 2012
|
| Trade date: | June 17
|
| Settlement date: | June 24
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 13% with 4 to 5 points OID
|
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