By Paul A. Harris
Portland, Ore., July 29 – Allen Media LLC and Allen Media Co-Issuer Inc. priced an upsized $350 million add-on to their 10½% senior notes due Feb. 15, 2028 (Caa1/B-) at 98.5 to yield 10.824% on Thursday, according to market sources.
The issue increased from $340 million.
The issue price came on top of revised price talk but significantly cheap to earlier official talk of par to 101.
Initial guidance was in the 103 area, a trader said.
A structural change to the deal increased the first call premium by 512.5 basis points. The notes, as modified, become callable on Feb. 15, 2023 at 113, increased from the original first call premium of 107.875. Subsequent to the first call, premiums revert to the values set when the original deal was priced: 105.25 on Feb. 15, 2024, 102.625 on Feb. 15, 2025, par on Feb. 15, 2026 and thereafter.
Bookrunner RBC Capital Markets LLC will bill and deliver.
The Los Angeles-based media content and technology company plans to use the proceeds to fund acquisitions, including the KITV designation.
| Issuers: | Allen Media LLC and Allen Media Co Issuer Inc.
|
| Amount: | $350 million, increased from $340 million
|
| Maturity: | Feb. 15, 2028
|
| Security description: | Add-on to 10½% senior notes due Feb. 15, 2028
|
| Bookrunner: | RBC Capital Markets LLC (bill and deliver)
|
| Coupon: | 10½%
|
| Price: | 98.5
|
| Yield to maturity: | 10.824%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2023, then callable at 113 (first call premium increased from 107.875), 105.25, 102.625, par on and after Feb. 15, 2026
|
| Trade date: | July 29
|
| Settlement date: | Aug. 2 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 98.5, revised from par to 101
|
| Marketing: | Roadshow
|
| Original issue: | $300 million priced in February 2020
|
| Total issue size: | $650 million
|
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