Published on 10/19/2009 in the Prospect News High Yield Daily.
New Issue: ViaSat upsizes to $275 million, prices 8 7/8% seven-year notes at 98.757 to yield 9 1/8%
By Paul A. Harris
St. Louis, Oct. 19 - ViaSat, Inc. priced an upsized $275 million issue of 8 7/8% seven-year senior notes (B1/B) at 98.757 to yield 9 1/8% on Monday, according to informed sources.
The yield printed at the tight end of the 9¼% area yield talk, while the issue price came in line with discount talk of up to 2 points. The amount was increased from $250 million.
J.P. Morgan Securities Inc., Banc of America Securities LLC and Wells Fargo Securities, LLC were joint bookrunners for the quick-to-market deal. Stephens Inc. and Oppenheimer & Co. Inc. were co-managers.
Proceeds will be used for general corporate purposes, which may include financing costs related to the purchase, launch and operation of the company's ViaSat-1 satellite, other potential acquisitions, working capital or capital expenditures.
The issuer is a Carlsbad, Calif.-based satellite services company.
| Issuer: | ViaSat, Inc.
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| Face amount: | $275 million (increased from $250 million)
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| Proceeds: | $271.582 million
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| Maturity: | Sept. 15, 2016
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC, Wells Fargo Securities, LLC
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| Co-managers: | Stephens Inc., Oppenheimer & Co. Inc.
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| Coupon: | 8 7/8%
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| Price: | 98.757
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| Yield: | 9 1/8%
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| Spread: | 616 bps
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| Call features: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2012 then callable at 106.656, 104.438, 102.219, par on and after Sept. 15, 2015
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| Equity clawback: | 35% at 108.875 until Sept.15, 2012
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| Change of control: | 101 put
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| Trade date: | Oct. 19
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| Settlement date: | Oct. 22
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| Ratings: | Moody's: B1
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| Standard & Poor's: B
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| Distribution: | Rule 144A/Regulation S
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| Price talk: | 9¼% area, up to 2 points of OID
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