By Paul A. Harris
Portland, Ore., Jan. 17 - VTR Finance BV priced a restructured $1.4 billion issue of 10-year senior secured notes (B1/B+/) at par to yield 6 7/8% on Friday, according to a market source.
The yield printed 12.5 basis points beneath the tight end of the 7% to 7¼% yield talk.
The Santiago, Chile-based cable and internet company upsized the 10-year note offering from $800 million when it withdrew a proposed $600 million tranche of eight-year notes, which had been talked to yield in the 6¾% area.
Prior to the restructuring, the 10-year tranche had been talked to yield 50 basis points behind the eight-year tranche.
J.P. Morgan Securities (USA) LLC, BNP Paribas, Goldman Sachs & Co. and Morgan Stanley & Co. are the joint bookrunners.
The 10-year notes come with five years of call protection. However a special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the non-call period.
Proceeds will be used to fund the split off of VTR GlobalCom, SpA and VTR Wireless, SpA from Liberty Global plc and for general corporate purposes.
| Issuer: | VTR Finance BV
|
| Amount: | $1.4 billion
|
| Maturity: | Jan. 15, 2024
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities (USA) LLC, BNP Paribas, Goldman Sachs & Co., Morgan Stanley & Co.
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 402 bps
|
| Call protection: | Five years
|
| Special call: | 10% of the notes are callable annually at 103 during the non-call period
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 24
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Roadshow
|
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