By Paul A. Harris
Portland, Ore., Oct. 24 – Virgin Australia Holdings Ltd. priced an upsized $425 million issue of five-year senior bullet notes (expected ratings B3/B) at par to yield 8 1/8% on Thursday, according to market sources.
The issue size increased from $400 million.
The yield printed on top of final yield talk, which had tightened from earlier official talk of 8¼% to 8½%. Initial price talk was in the 8% area.
Morgan Stanley & Co. was the left bookrunner. Joint bookrunners were UBS and HSBC.
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.
| Issuer: | Virgin Australia Holdings Ltd.
|
| Amount: | $425 million, increased from $400 million
|
| Maturity: | Nov. 15, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | Morgan Stanley & Co.
|
| Joint bookrunners: | UBS and HSBC
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 651 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable
|
| Trade date: | Oct. 24
|
| Settlement date: | Nov. 7
|
| Expected ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8 1/8%, revise from 8¼% to 8½%
|
| Marketing: | Roadshow
|
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