By Andrea Heisinger
New York, Nov. 9 - Time Warner Cable Inc. priced $1.9 billion of senior notes (Baa2/BBB/BBB) in two tranches on Tuesday, a source close to the offering said.
A $700 million tranche of 4.125% notes due Feb. 15, 2021 priced at 99.369 to yield 4.202% with a spread of Treasuries plus 155 basis points. The spread was in line with revised price talk in the 155 bps area, a source said. Whispered guidance had been in the mid-100 bps area.
The 10-year notes have a make-whole call of Treasuries plus 25 bps before 2020 and then are callable at par.
A $1.2 billion tranche of 5.875% 30-year debentures sold at 97.998 to yield 6.02% with a 180 bps over Treasuries spread. The debentures priced in line with revised price guidance in the 180 bps area. Whispered talk was in the 180 bps to 185 bps range.
The 30-year paper has a make-whole call at 30 bps over Treasuries before 2040 and then is callable at par.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and RBS Securities Inc. were the bookrunners.
Proceeds are being used for general corporate purposes, including debt repayment and stock repurchases.
The notes and debentures are guaranteed by Time Warner Entertainment Co. LP and TW NY Holding, Inc.
The cable TV operator is based in New York City.
| Issuer: | Time Warner Cable Inc.
|
| Guarantors: | Time Warner Entertainment Co. LP, TW NY Holding, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.9 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., RBS Securities Inc.
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Feb. 15, 2021
|
| Coupon: | 4.125%
|
| Price: | 99.369
|
| Yield: | 4.202%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps before 2020, then at par
|
| Price talk: | Mid-100 bps (whispered), 155 bps area (revised)
|
|
|
| 30-year debentures
|
| Amount: | $1.2 billion
|
| Maturity: | Nov. 15, 2040
|
| Coupon: | 5.875%
|
| Price: | 97.998
|
| Yield: | 6.02%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps before 2040, then at par
|
| Price talk: | 180 to 185 bps (whispered), 180 bps area (revised)
|
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