By Paul A. Harris
Portland, Ore., Jan. 20 – VistaJet priced an upsized $1 billion issue of eight-year senior notes (Caa1/B-/BB-) at par to yield 6 3/8% on Thursday, according to market sources.
The issue size increased from $800 million.
The yield printed 12.5 basis points tighter than the 6½% to 6¾% yield talk. Initial guidance was in the high 6% area to 7%.
Timing was accelerated. The offer previously had been expected to remain in the market until Friday.
The deal attracted $4 billion of orders and was heard to be completely circled up in reverse inquiry at its original $800 million size, sources said.
The bonds were trading at par 1/8 bid, par 3/8 offered late Thursday, a trader said, adding that in early trading among Thursday's new issues, VistaJet's new paper was the strongest.
Joint physical bookrunner BofA will bill and deliver. Jefferies was also a physical bookrunner.
The notes were sold via XO Management Holding, Inc. and VistaJet Malta Finance plc.
The Luqa, Malta-based aviation company plans to use the proceeds to redeem its 10½% notes due 2024.
| Issuers: | XO Management Holding, Inc. and VistaJet Malta Finance plc
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| Amount: | $1 billion, increased from $800 million
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| Issue: | Senior notes
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| Maturity: | Feb. 1, 2030
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| Physical bookrunners: | BofA (bill and deliver) and Jefferies
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| Co-managers: | Barclays and Credit Suisse
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| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
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| Spread: | 461 bps
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| First call: | Feb. 1, 2025 at 103.188
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| Trade date: | Jan. 20
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| Settlement date: | Jan. 31
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| Ratings: | Moody's: Caa1
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| S&P: B-
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6½% to 6¾%
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| Marketing: | Roadshow
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