New Issue: Virgin Media prices $500 million tap of 5¼% notes due 2026 at 101 to yield 5.123%

By Paul A. Harris

Portland, Ore., April 23 – Virgin Media Secured Finance plc priced a $500 million add-on to its 5¼% senior secured notes due Jan. 15, 2026 (expected ratings Ba3/BB-) at 101 to yield 5.123% on Thursday, according to an informed source.

The reoffer price came at the cheap end of the 101 to 101.5 price talk.

Goldman Sachs & Co. was the left bookrunner. Barclays, BNP Paribas and Deutsche Bank Securities Inc. are the joint bookrunners.

The Hook, England-based provider of digital cable, broadband internet, fixed-line telephone and mobile services plans to use the proceeds to fund its April 2015 refinancing, with any remaining proceeds to be used for general corporate purposes, which may include loans, distributions or other payments to Virgin Media and its direct or indirect parent companies.

Virgin Media is a subsidiary of Liberty Global.

Issuer:	Virgin Media Secured Finance plc
Face amount:	$500 million
Proceeds:	$505 million
Maturity:	Jan. 15, 2026
Security description:	Add-on to 5¼% senior secured notes due Jan. 15, 2026
Left bookrunner:	Goldman Sachs & Co.
Joint bookrunners:	Barclays, BNP Paribas, Deutsche Bank Securities Inc.
Coupon:	5¼%
Price:	101
Yield:	5.123%
Spread:	310 bps
First call:	Jan. 15, 2020 at 102.625
Trade date:	April 23
Settlement date:	April 30 with accrued interest
Expected ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	101 to 101.5
Marketing:	Quick to market
Original issue:	$500 million priced at par on March 17, 2015
Total issue size:	$1 billion

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