By Paul A. Harris
Portland, Ore., Oct. 7 – Virgin Australia Holdings Ltd. priced a $350 million issue of five-year senior notes (expected ratings B3/B+) at par to yield 7 7/8% on Friday, according to an informed source.
The yield printed in the middle of the 7¾% to 8% yield talk and tight to initial guidance of 8%, according to a trader.
UBS Investment Bank was the left lead bookrunner. Goldman Sachs & Co. is the joint bookrunner.
Proceeds will be used for general corporate purposes and to fund capital needs and improve the diversity and tenor of the company’s funding profile.
Virgin Australia, formerly Virgin Blue Airlines, is Australia’s second-largest airline. The company is based in Brisbane.
| Issuer: | Virgin Australia Holdings Ltd.
|
| Amount: | $350 million
|
| Maturity: | Oct. 15, 2021
|
| Securities: | Senior notes
|
| Lead left bookrunner: | UBS Investment Bank
|
| Joint bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 659 bps
|
| Call protection: | Non-callable
|
| Trade date: | Oct. 7
|
| Settlement date: | Oct. 17
|
| Expected ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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