Published on 1/18/2017 in the Prospect News High Yield Daily.
New Issue: Virgin Media prices £675 million 10-year notes at par to yield 5%
By Paul A. Harris
Portland, Ore., Jan. 18 – Virgin Media priced a £675 million issue of senior secured notes due April 15, 2027 (Ba3/BB-/BB+) at par to yield 5% in a quick-to-market transaction on Wednesday, according to a market source.
The yield printed at the tight end of yield talk in the 5 1/8% area.
Joint bookrunner Deutsche Bank will bill and deliver. Barclays, Citigroup, Credit Suisse, HSBC, Banca IMI, Mediobanca, Nomura, RBC, NatWest and UBS were also joint bookrunners.
The issuing entity is Virgin Media Secured Finance plc.
The Hook, England-based provider of video, broadband internet, fixed-line telephone and mobile services in the United Kingdom and Ireland plans to use the proceeds to repay its 6% senior secured notes due 2021.
| Issuer: | Virgin Media Secured Finance plc
|
| Amount: | £675 million
|
| Maturity: | April 15, 2027
|
| Securities: | Senior secured notes
|
| Bookrunners: | Deutsche Bank (bill and deliver), Banca IMI, Barclays, Citigroup, Credit Suisse, HSBC, Mediobanca, NatWest, Nomura, RBC, UBS
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 359 bps
|
| Call: | Make-whole call at Gilts plus 50 bps until April 15, 2022, then callable at 102.5
|
| Equity clawback: | 40% at 105 until April 15, 2020
|
| Trade date: | Jan. 18
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5 1/8% area
|
| Marketing: | Quick to market
|
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