By Andrea Heisinger
New York, March 24 - Time Warner Cable Inc. gave terms for its $3 billion senior unsecured note issue (Baa2/BBB+/BBB) that priced in two tranches late Monday, according to an FWP filing with the Securities and Exchange Commission.
The $1 billion of 7.5% five-year notes priced at 99.534 to yield 7.613%, or Treasuries plus 595 basis points. This was within talk, which was in the 600 bps area, the source said.
The $2 billion of 8.25% 10-year notes priced at 99.348 to yield 8.374%, or Treasuries plus 570 bps. This was within guidance, which was in the 575 bps area.
Price guidance for each had a margin of plus or minus 12.5 bps, the source said.
Both tranches have a make-whole call at Treasuries plus 50 bps.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Investment Bank and Wachovia Capital Markets LLC.
Proceeds will be used to repay all borrowings under a $1.932 billion term loan facility used to fund, in part, a special cash dividend to stockholders of Time Warner Cable paid on March 12. Excess proceeds will be used for general corporate purposes, including repayment of debt.
The notes are guaranteed by TW NY Cable Holdings Inc. and Time Warner Entertainment Co., LP.
The cable operator is based in New York City.
| Issuer: | Time Warner Cable Inc.
|
| Issue: | Senior unsecured notes
|
| Total amount: | $3 billion
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Wachovia Capital Markets LLC
|
| Trade date: | March 23
|
| Settlement date: | March 26
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2014
|
| Coupon: | 7.5%
|
| Price: | 99.534
|
| Yield: | 7.613%
|
| Spread: | Treasuries plus 595 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 600 bps area, plus or minus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | April 1, 2019
|
| Coupon: | 8.25%
|
| Price: | 99.348
|
| Yield: | 8.374%
|
| Spread: | Treasuries plus 570 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 575 bps area, plus or minus 12.5 bps
|
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