Published on 11/7/2023 in the Prospect News High Yield Daily.
New Issue: Outfront Media sells upsized $450 million 7 3/8% 7.25-year secured notes at par
By Paul A. Harris
Portland, Ore., Nov. 7 – Outfront Media, Inc. priced an upsized $450 million issue of Outfront Media Capital LLC and Outfront Media Capital Corp. 7.25-year senior secured notes (Ba1/BB) at par to yield 7 3/8% in a Tuesday drive-by, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of yield talk in the 7½% area. Initial guidance was in the high-7% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities Inc. and Wells Fargo Securities LLC.
The New York-based outdoor advertising company plans to use the proceeds plus cash on hand to redeem all of its outstanding 6¼% senior notes due 2025.
| Issuers: | Outfront Media Capital LLC and Outfront Media Capital Corp.
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| Amount: | $450 million, increased from $400 million
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| Issue: | Senior secured notes
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| Maturity: | Feb. 15, 2031
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities Inc. and Wells Fargo Securities LLC
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| Co-managers: | Capital One Securities Inc., CIBC World Markets Corp. and U.S. Bancorp Investments Inc.
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| Coupon: | 7 3/8%
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| Price: | Par
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| Yield: | 7 3/8%
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| Spread: | 288 bps
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| First call: | Nov. 15, 2026 at 103.688
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 20
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| Ratings: | Moody’s: Ba1
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% area
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| Marketing: | Drive-by
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