By Paul A. Harris
St. Louis, Aug. 15 - Broadview Networks Holdings, Inc. priced a $210 million issue of six-year senior secured notes (B3/B-) at par on Tuesday to yield 11 3/8%, according to an informed source.
The yield came in the middle of the 11¼% to 11½% price talk.
Jefferies & Co. ran the books for the issue, which was priced via Rule 144A with registration rights and via Regulation S.
Proceeds will be used to fund the acquisition of Philadelphia-based ATX Communications, Inc. as well as to repay debt under Broadview's existing senior secured credit facility and its senior unsecured subordinated notes due 2009 and for general corporate purposes.
Broadview is a facilities-based communications provider offering voice and data solutions to small- and medium-sized business customers in 13 markets in seven states throughout the northeast and mid-Atlantic United States. The company has headquarters in Rye Brook, N.Y.
| Issuer: | Broadview Networks Holdings, Inc.
|
| Amount: | $210 million
|
| Maturity: | Sept. 1, 2012
|
| Security description: | Senior secured notes
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 11 3/8%
|
| Price: | Par
|
| Yield: | 11 3/8%
|
| Spread: | 653 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps prior to Sept. 1, 2009, then at 105.688, 102.844, par on or after Sept. 1, 2011
|
| Equity clawback: | Until Sept. 1, 2009 for 35% at 111.375
|
| Trade date: | Aug. 15
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 11¼% to 11½%
|
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