By Paul A. Harris
Portland, Ore., June 18 – WaveDivision Holdings LLC priced an upsized $175 million issue of five-year PIK toggle notes (Caa1/B-/) at par to yield 8¼% on Wednesday, according to a market source.
The deal was upsized from $150 million.
The yield printed at the tight end of yield talk in the 8 3/8% area.
The 8 3/8% cash coupon steps up by 75 basis points, to 9%, for PIK interest payments.
Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Interest payments will be cash only for the first, second and last coupons, the source said.
For the third and fourth coupons interest payments will be all-cash, all-PIK, or half-cash, half-PIK, at the company’s discretion. The remaining interest payments will be all-cash, pending satisfaction of the company’s restricted payments capacity.
The Kirkland, Wash.-based broadband cable company plans to use the proceeds to fund a dividend.
| Issuer: | Wave Holdco LLC (WaveDivision Holdings LLC)
|
| Amount: | $175 million, increased from $150 million
|
| Maturity: | Five years
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Wells Fargo Securities LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc.
|
| Cash coupon: | 8¼%
|
| PIK coupon: | 9%
|
| Price: | Par
|
| Cash yield: | 8¼%
|
| Call protection: | One year
|
| Equity clawback: | 40% at 108.25 for one year
|
| Trade date: | June 18
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8 3/8% area
|
| Marketing: | Roadshow
|
© 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.
