By Paul A. Harris
St. Louis, Sept. 29 - Windstream Communications priced a $400 million issue of 7 7/8% eight-year senior notes (Ba3/BB/) on Tuesday at 98.531 to yield 8 1/8%, or 504 basis points over Treasuries, according to an informed source.
The yield printed in the middle of the 8% to 8¼% price talk.
J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities were joint bookrunners for the quick-to-market sale.
Co-managers were Fortis Securities LLC, Daiwa Securities America Inc., Mitsubishi UFJ Securities, Morgan Stanley & Co. Inc. and SunTrust Robinson Humphrey Inc.
Proceeds, together with cash on hand, will be used to finance the cash component of the purchase price of the acquisitions of D&E Communications, Inc. and Lexcom, Inc.
Windstream is a Little Rock, Ark.-based provider of phone, high-speed internet and high-definition digital TV services to customers in 16 states.
| Issuer: | Windstream Communications
|
| Face amount: | $400 million
|
| Proceeds: | $394.124 million
|
| Maturity: | Nov. 1, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities
|
| Co-managers: | Fortis Securities LLC, Daiwa Securities America Inc., Mitsubishi UFJ Securities, Morgan Stanley & Co. Inc., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7 7/8%
|
| Price: | 98.531
|
| Yield: | 8 1/8%
|
| Spread: | 504 bps
|
| Call protection: | Non-callable (make-whole provision at Treasuries plus 50 bps)
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 29
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 8% to 8¼%
|
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