Published on 7/16/2009 in the Prospect News High Yield Daily.
New Issue: Virgin Media upsizes to $600 million, prices tap of 9½% notes due 2016 to yield 9¾%
By Paul A. Harris
St. Louis, July 16 - Virgin Media Finance plc priced a massively upsized $600 million add-on to its 9½% senior notes due Aug. 15, 2016 (B2/B) at 98.662 to yield 9¾% on Thursday, according to an informed source.
The quick-to-market deal, which doubled in size from $300 million, came at the tight end of the 9¾% to 10% price talk, and was priced from the London syndicate desk.
Goldman, Sachs & Co., BNP Paribas, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc. and UBS Securities LLC were joint bookrunners.
Proceeds will be used to repay part of the New York City-based media company's senior credit facility.
The original $1 billion equivalent issues priced at 95.574 to yield 10 3/8% on June 1, 2009, in tranches of $750 million and €180 million.
| Issuer: | Virgin Media Finance plc
|
| Face amount: | $600 million (increased from $300 million)
|
| Proceeds: | $591.172 million
|
| Maturity: | Aug. 15, 2016
|
| Security description: | Add-on to 9½% senior notes due Aug. 15, 2016
|
| Bookrunners: | Goldman, Sachs & Co., BNP Paribas, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., UBS Securities LLC
|
| Coupon: | 9½%
|
| Price: | 98.662
|
| Yield: | 9¾%
|
| Spread: | 668 bps
|
| Call features: | Make-whole provision at Treasuries plus 50 bps until Aug. 15, 2013, then callable at 104.75, 102.375, par on and after Aug. 15, 2015
|
| Equity clawback: | For 40% at 109.50 until Aug. 15, 2012
|
| Trade date: | July 16
|
| Settlement date: | July 21 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distressed: | SEC registered
|
| Price talk: | 9¾% to 10%
|
| Original issue: | $1 billion equivalent ($750 million and €180 million) priced at 95.574 to yield 10 3/8% on June 1, 2009
|
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