By Paul Deckelman
New York, Aug. 9 - WaveDivision Holdings LLC was heard to have priced a $250 million issue of eight-year notes (Caa1/B-) on Thursday.
Junk market primary sources said that the deal priced at par to yield 8 1/8%, actually tighter than price talk of 8¼% to 8½%.
The official borrowers are WaveDivision Escrow LLC and WaveDivision Escrow Corp.
The deal came to market via joint bookrunning managers Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc.
The paper is being sold under Rule 144A and Regulation S for the life of the issue.
The notes are not callable until Sept. 1, 2016. The first-call price is 104.063.
The bonds also have a standard equity clawback provision, letting the company use equity proceeds to redeem up to 35% of the issue at 108.125% for the first three years after issue.
Holders can put the bonds back to the company at a price of 101 plus accrued in the event of a change of control, as defined by the bonds' indenture.
WaveDivision, a Kirkland, Wash.-based owner and operator of broadband cable systems, plans to use the net proceeds of the offering, along with the proceeds from a concurrent term loan and revolving credit facility, to help fund the acquisition of the company by Oak Hill Capital Partners, GI Partners and management from the current owner, Sandler Capital Management.
| Issuer: | WaveDivision Holdings LLC via borrowing entities WaveDivision Escrow LLC and WaveDivision Escrow Corp.
|
| Amount: | $250 million
|
| Maturity: | Sept. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Wells Fargo Securities, LLC, RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 679 bps vs. 2.63% Treasury due May 15, 2022
|
| Call protection: | Noncallable until Sept. 1, 2016, then callable at 104.063, at 102.031 and finally at par on or after Sept. 1, 2018
|
| Equity clawback: | 35% of issue at 108.125 until Sept. 1, 2015
|
| Put option: | At 101 upon a change of control
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S for life
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Quick-to-market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
