Vericast sets price talk in downsized $1.78 billion two-part deal; pricing Thursday

By Paul A. Harris

Portland, Ore., March 3 – Vericast Corp. set price talk in its downsized $1.775 billion two-part offering of secured notes, according to market sources.

A downsized $1.1 billion tranche of five-year first-lien notes (B3/B-) is talked to yield in the 9½% area, versus initial guidance in the 9% area. The first-lien notes, downsized from $1.3 billion, become callable after two years at par plus 75% of the coupon.

Vericast is also offering a downsized $675 million tranche of six-year second-lien notes (Caa3/CCC-) talked in the 12½% area, versus initial guidance in the 12% area. The second-lien notes, downsized from $700 million, become callable after 2.5 years at par plus the full coupon.

Books close at 5 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life notes are set to price on Thursday.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and HSBC Securities (USA) Inc. are the joint bookrunners.

The San Antonio-based marketing company plans to use the proceeds to partially refinance its existing capital structure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.