By Paul A. Harris
Portland, Ore., May 21 – Northwest Fiber, LLC, which does business as Ziply Fiber, priced $250 million of 10¾% eight-year senior notes (Caa1/CCC) at 98 to yield 11.131% on Thursday, according to market sources.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were BofA Securities Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC.
The coupon and issue price came on top of price talk.
A $225 million amount of the notes was placed via Rule 144A and Regulation S, with the remaining $25 million placed privately.
Proceeds will be used for general corporate purposes, including the capital investment program.
The issuer is an Everett, Wash.-based provider of residential and commercial communications services over a combined fiber- and copper-based network operating assets in Washington, Oregon, Idaho and Montana acquired from Frontier Communications Northwest.
| Issuers: | Northwest Fiber, LLC and Northwest Fiber Finance Sub, Inc.
|
| Amount: | $250 million
|
| Maturity: | June 1, 2028
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | BofA Securities Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 10¾%
|
| Price: | 98
|
| Yield: | 11.131%
|
| Spread: | 1,055.6 bps
|
| First call: | 105.375 on June 1, 2023 (call premium reduced to 50% of coupon from 75%, subsequent annual premiums reduced to 25% from 50%, par from 25%)
|
| Trade date: | May 21
|
| Settlement date: | June 5
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC
|
| Distribution: | $225 million placed via Rule 144A and Regulation S; $25 million privately placed
|
| Price talk: | 10¾% coupon at 98
|
| Marketing: | Roadshow
|
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