New Issue: Idearc prices $2.85 billion 10-year notes at par to yield 8%

By Paul A. Harris

St. Louis, Nov. 1 - Idearc Inc., a new public company formed by the spinoff of Verizon Communications Inc.'s directories businesses, priced a $2.85 billion issue of 10-year senior notes (B2/B+) at par to yield 8% on Wednesday, according to a market source.

The yield came at the tight end of the 8% to 8¼% price talk.

JP Morgan and Bear Stearns & Co. had the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S. Banc of America Securities LLC was a joint lead manager. The co-managers were Barclays Capital, Citigroup, ABN Amro, Credit Suisse, Merrill Lynch & Co. and Morgan Stanley.

Proceeds, in addition to proceeds from a $6.5 billion credit facility, will be used to finance the spinoff, primarily by making a cash distribution to Verizon Communications.

Idearc will be based in Dallas.

Issuer:	Idearc Inc.
Amount:	$2.85 billion
Maturity:	Nov. 15, 2016
Security description:	Senior notes
Bookrunners:	JP Morgan, Bear Stearns
Joint lead manager:	Banc of America Securities LLC
Co-managers:	Barclays Capital, Citigroup, ABN Amro, Credit Suisse, Merrill Lynch & Co., Morgan Stanley
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	342 bps
Call features:	Callable on Nov. 15, 2011 at 104.0, 102.667, 101.333, par on and after Nov. 15, 2014
Trade date:	Nov. 1
Settlement date:	Nov. 17
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights
Price talk:	8% to 8¼%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.