Published on 8/11/2006 in the Prospect News High Yield Daily.
New Issue: Travelport prices $1.4 billion equivalent five-part bond issue
By Paul A. Harris
St. Louis, Aug. 11 - TDS Investor Corp. (Travelport) issued $1.4 billion equivalent of high-yield notes in five tranches on Friday, according to an informed source.
The Chicago-based travel services company priced the following tranches:
• $150 million eight-year senior floating-rate notes (B3/B-) at par to yield three-month Libor plus 462.5 basis points, at the wide end of the Libor plus 450 basis points area price talk and at the low end of the planned $150 million to $200 million offering range;
• €235 million eight-year senior floating-rate notes (B3/B-) at par to yield three-month Euribor plus 462.5 basis points, again at the wide end of the Euribor plus 450 basis points area price talk;
• $450 million eight-year senior fixed-rate notes (B3/B-) at par to yield 9 7/8%, at the wide end of the 9¾% area price talk and at the high end of the planned $400 million to $450 million offering range;
• $300 million 10-year senior subordinated notes (Caa1/B-) at par to yield 11 7/8%, at the wide end of the 11¾% area price talk; and
• €160 million (upsized from €150 million) 10-year senior subordinated notes (Caa1/B-) at par to yield 10 7/8%, in the middle of the 10¾% to 11% price talk.
Lehman Brothers, Credit Suisse, UBS Investment Bank, Citigroup and Deutsche Bank Securities are joint bookrunners for the Rule 144A and Regulation S transaction.
Proceeds will be used to help fund the $4.3 billion cash purchase of Travelport by The Blackstone Group from Cendant Corp.
| Issuer: | TDS Investor Corp.
|
| Amount: | $1.4 billion equivalent
|
| Bookrunners: | Lehman Brothers, UBS Investment Bank, Credit Suisse, Citigroup and Deutsche Bank Securities
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 23
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Dollar senior floating-rate notes
|
| Amount: | $150 million
|
| Maturity: | Sept. 1, 2014
|
| Coupon: | Three-month Libor plus 462.5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 462.5 bps
|
| Call features: | Callable on and after Sept. 1, 2008 at 102.0, 101.0, par on and after Sept. 1, 2010
|
| Equity clawback: | Until Sept. 1, 2008 for up to 35% at par plus applicable coupon
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Libor plus 450 bps area
|
|
|
| Euro senior floating-rate notes
|
| Amount: | €235 million
|
| Maturity: | Sept. 1, 2014
|
| Coupon: | Three month Euribor plus 462.5 bps
|
| Price: | Par
|
| Yield: | Three month Euribor plus 462.5 bps
|
| Call features: | Callable on and after Sept. 1, 2008 at 102.0, 101.0, par on and after Sept. 1, 2010
|
| Equity clawback: | Until Sept. 1, 2008 for up to 35% at par plus applicable coupon
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Euribor plus 450 bps area
|
|
|
| Dollar senior fixed-rate notes
|
| Amount: | $450 million
|
| Maturity: | Sept. 1, 2014
|
| Coupon: | 9 7/8%
|
| Price: | Par
|
| Yield: | 9 7/8%
|
| Spread: | 494 bps
|
| Call features: | Callable on and after Sept. 1, 2010 at 104.938, 102.469, par on and after Sept. 1, 2012
|
| Equity clawback: | Until Sept. 1, 2009 for up to 35% at 109.875
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 9¾% area
|
|
|
| Dollar senior subordinated notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 1, 2016
|
| Coupon: | 11 7/8%
|
| Price: | Par
|
| Yield: | 11 7/8%
|
| Spread: | 694 bps
|
| Call features: | Callable on and after Sept. 1, 2011 at 105.938, 103.958, 101.979, par on and after Sept. 1, 2014 Equity clawback: | Until Sept. 1, 2009 for up to 35% at 111.875
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 11¾% area
|
|
|
| Euro senior subordinated notes
|
| Amount: | €160 million
|
| Maturity: | Sept. 1, 2016
|
| Coupon: | 10 7/8%
|
| Price: | Par
|
| Yield: | 10 7/8%
|
| Spread: | 692 bps
|
| Call features: | Callable on and after Sept. 1, 2011 at 105.438, 103.625, 101.813, par on and after Sept. 1, 2014 Equity clawback: | Until Sept. 1, 2009 for up to 35% at 110.875
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 10¾% to 11%
|
|
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