Published on 1/7/2011 in the Prospect News High Yield Daily.
New Issue: Windstream sells $200 million add-on to 7¾% notes due 2020 at 103 to yield 7.233%
By Paul A. Harris
Portland, Ore., Jan. 7 - Windstream Corp. priced a $200 million add-on to its 7¾% senior notes due Oct. 15, 2020 (Ba3/B+/BB+) at 103 on Friday, resulting in a 7.233% yield to worst, according to market sources.
The reoffer price came at the rich end of the 102.5 to 103 price talk.
J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Securities Inc. and Wells Fargo Securities were the joint bookrunners for the quick-to-market issue.
Proceeds, together with a draw on the company's revolver, will be used to fund the tender offer for the $400 million of 7¾% senior notes due 2015 issued by Windstream's subsidiaries Valor Telecommunications Enterprises, LLC and Valor Telecommunications Finance Corp.
Windstream is a Little Rock, Ark.-based provider of telephone and internet services.
| Issuer: | Windstream Corp.
|
| Face amount: | $200 million
|
| Proceeds: | $206 million
|
| Maturity: | Oct. 15, 2020
|
| Securities: | Add-on to 7¾% senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., RBS Securities Inc., Wells Fargo Securities
|
| Coupon: | 7¾%
|
| Price: | 103
|
| Yield: | 7.233%
|
| Spread: | 399 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2015, then callable at 103.875, 102.583, 101.292, par on or after Oct. 15, 2018
|
| Equity clawback: | 35% at 107.75 until Oct. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 24 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 102.5 to 103
|
| Marketing: | Quick to market
|
| Original issue: | $500 million priced at par on Sept. 22, 2010
|
| Total issue size: | $700 million
|
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