By Paul A. Harris
Portland, Ore., Dec. 3 – Unitymedia KabelBW launched and priced an upsized €1.45 billion equivalent amount of senior secured notes due Jan. 15, 2025 (expected ratings Ba3/BB-) on Wednesday, according to a market source.
The deal included an upsized €1 billion tranche of notes that priced at par to yield 4%. The tranche was upsized from €785 million and was priced on top of price talk that had tightened from earlier guidance of 4% to 4¼%, according to a market source.
An upsized $550 million tranche of notes priced at par to yield 5%. The dollar-denominated tranche was upsized from $500 million, and the dollar-denominated notes also price on top of price talk.
The combined issuance was increased from €1.18 billion equivalent. The deal was announced on Tuesday as a €785 million euro-only offering.
Joint bookrunner Goldman Sachs International will bill and deliver. Barclays, BNP Paribas, Credit Agricole CIB, JPMorgan, SG CIB and UBS were also joint bookrunners.
The Koln, Germany-based cable operator plans to use the proceeds to refinance its existing €735 million of 7½% senior secured notes due 2019. The additional proceeds resulting from the upsizings will be used to repay $460 million of the 7½% senior secured notes due 2019.
| Issuers: | Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH
|
| Amount: | €1.45 billion equivalent, increased from €1.45 billion equivalent, previously from €785 million
|
| Maturity: | Jan. 15, 2025
|
| Securities: | Senior secured notes
|
| Bookrunners: | Goldman Sachs International (bill and deliver), Barclays, BNP Paribas, Credit Agricole CIB, JPMorgan, SG CIB, UBS Investment Bank
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 17
|
| Expected ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Euro-denominated notes
|
| Amount: | €1 billion, increased from €785 million
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 326 bps
|
| First call: | Jan. 15, 2020 at 102
|
| Price talk: | 4%
|
|
|
| Dollar-denominated notes
|
| Amount: | $550 million, increased from $500 million
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 271 bps
|
| First call: | Jan. 15, 2020 at 102.5
|
| Price talk: | 5% area
|
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