Virgin Australia firms price talk on $400 million five-year bullet notes to 8 1/8%; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 24 – Virgin Australia Holdings Ltd. tightened pricing on its $400 million offering of five-year senior bullet notes to 8 1/8%, according to a syndicate source.

Final talk comes 12.5 basis points inside of earlier official talk of 8¼% to 8½%.

Order confirmations are due at 3 p.m. ET on Thursday, and the deal is set to price thereafter.

Morgan Stanley & Co. is the left bookrunner for the Rule 144A for life and Regulation S offering. UBS Investment Bank and HSBC are the joint bookrunners.

The notes feature a make-whole call at Treasuries plus 50 basis points until six months prior to maturity, whereupon they become callable at par. They are otherwise non-callable.

The Brisbane-based airline plans to use the proceeds to help fund the acquisition of the remaining 34.82% stake in Velocity Frequent Flyer.

There is a mandatory redemption at par if the Velocity acquisition is not consummated on or prior to Dec. 13.

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