Published on 1/13/2010 in the Prospect News High Yield Daily.
New Issue: Virgin Media upsizes, prices $1 billion and £875 million of eight-year secured notes
By Paul A. Harris
St. Louis, Jan. 13 - Virgin Media Secured Finance plc priced an upsized two-part issue of eight-year senior secured notes (Ba2/BB/BB+) on Wednesday, according to informed sources.
The U.K.-based entertainment and communications company priced $1 billion of 6½% notes at 98.488 to yield 6¾%.
The yield printed on top of price talk that had been revised from 6¾% to 7%. The reoffer price came in line with the 1.5 points of discount talk.
In addition, Virgin Media priced £875 million of 7% notes at 98.503 to yield 7¼%.
The yield printed on top of yield talk. The reoffer price came in line with the 1.5 points of discount talk.
JPMorgan, Goldman Sachs & Co., BNP Paribas, Calyon Securities, Credit Suisse, Deutsche Bank, GE Capital Markets, HSBC, Lloyds TSB Corporate Markets, RBS, UBS Investment Bank, Barclays Capital, Bank of America Merrill Lynch and Citigroup were joint bookrunners for the deal, which was upsized from £500 million equivalent.
Proceeds will be used to repay bank debt.
| Issuer: | Virgin Media Secured Finance plc
|
| Maturity: | Jan. 15, 2018
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| Security description: | Senior secured notes
|
| Bookrunners: | JPMorgan, Goldman Sachs & Co., BNP Paribas, Calyon Securities, Credit Suisse, Deutsche Bank, GE Capital Markets, HSBC, Lloyds TSB Corporate Markets, RBS, UBS Investment Bank, Barclays Capital, Bank of America Merrill Lynch, Citigroup
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 19
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
|
|
| Dollar notes
|
| Amount: | $1 billion
|
| Proceeds: | $984.88 million
|
| Coupon: | 6½%
|
| Price: | 98.488
|
| Yield: | 6¾%
|
| Spread: | 325 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 103.25, 101.625, par on and after Jan. 15, 2016
|
| Equity clawback: | 40% at 106.5 until Jan. 15, 2013
|
| Price talk: | 6¾% with 1.5 points OID, revised from 6¾% to 7%
|
|
|
| Sterling notes
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| Face amount: | £875 million
|
| Proceeds: | £861,901,000 (approximate)
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| Coupon: | 7%
|
| Price: | 98.503
|
| Yield: | 7¼%
|
| Spread: | 340 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 103.50, 101.75, par on and after Jan. 15, 2016
|
| Equity clawback: | 40% at 107 until Jan. 15, 2013
|
| Price talk: | 7¼% yield with 1.5 points OID
|
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