By Paul A. Harris
Portland, Ore., Feb. 7 - After cutting back marketing time due to intense demand, Virgin Media priced £2.3 billion equivalent of high-yield bonds in four tranches on Thursday, according to a syndicate source.
Lynx I Corp. priced dollar- and sterling-denominated tranches of senior secured notes due April 15, 2021 (Ba3/BB-).
A $1 billion tranche of the secured notes priced at par to yield 5 3/8%, in the middle of the 5¼% to 5½% yield talk.
A £1.1 billion tranche priced at par to yield 6%, on top of yield talk.
The secured notes come with four years of call protection. However a special call provision allows the issuer to redeem 10% of the secured notes annually at 103 during the non-call period.
Meanwhile Lynx II Corp. priced dollar- and sterling denominated tranches of senior unsecured notes due April 15, 2023 (B2/B).
The execution on the unsecured tranches saw the dollar-denominated tranche grow, with respect to its target size, while the sterling denominated senior unsecured notes tranche shrank.
A $530 million tranche of the unsecured notes priced at par to yield 6 3/8%.
The yield printed in the middle of the 6¼% to 6½% yield talk. The final tranche size came in higher than the $450 million target size.
A £250 million tranche of the unsecured notes priced at par to yield 7%, on top of price talk. The final tranche size came in lower than the £300 million target size.
Global coordinator Credit Suisse will bill and deliver.
Barclays, BNP Paribas, BofA Merrill Lynch and Deutsche Bank are the joint bookrunners.
Proceeds will be used to finance the acquisition of Virgin Media by Liberty Global Inc.
New York-based Virgin Media provides television, broadband, fixed-line telephone and mobile telephone services in the United Kingdom.
| Company: | Virgin Media
|
| Amount: | £2.3 billion equivalent
|
| Global coordinator: | Credit Suisse (bill and deliver)
|
| Bookrunners: | Barclays, BNP Paribas, BofA Merrill Lynch, Deutsche Bank
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 22
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market (brief roadshow foreshortened due to demand)
|
|
|
| Senior secured notes
|
| Issuer: | Lynx I Corp.
|
| Maturity: | April 15, 2021
|
| Special call: | The issuer may redeem 10% of the senior secured notes annually at 103 during the non-call period
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
|
|
| Dollar secured notes
|
| Amount: | $1 billion
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 376 bps
|
| First call: | April 15, 2017 at 102.688
|
| Price talk: | 5¼% to 5½%
|
|
|
| Sterling secured notes
|
| Amount: | £1.1 billion
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 435 bps
|
| First call: | April 15, 2017 at 103
|
| Price talk: | 6% area
|
|
|
| Senior unsecured notes
|
| Issuer: | Lynx II Corp.
|
| Maturity: | April 15, 2023
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
|
|
| Dollar unsecured notes
|
| Amount: | $530 million (target size was $450 million)
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 452 bps
|
| First call: | April 15, 2018 at 103.188
|
| Price talk: | 6¼% to 6½%
|
|
|
| Sterling unsecured notes
|
| Amount: | £250 million (target size was £300 million)
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 490 bps
|
| First call: | April 15, 2018 at 103.5
|
| Price talk: | 7% area
|
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