Published on 9/10/2020 in the Prospect News High Yield Daily.
New Issue: Virgin Media sells secured notes in dollar-, euro- and sterling-denominated tranches
By Paul A. Harris
Portland, Ore., Sept. 10 – Virgin Media priced three tranches of Vmed 02 Financing I plc senior secured notes (Ba3/BB-/BB+) on Thursday, according to market sources.
The deal priced as follows:
• £600 million of 8.3-year notes priced at par to yield 4%, at the tight end of the 4% to 4¼% yield talk. Initial talk was in the low 4% area. Citigroup Global Markets Inc. will bill and deliver.
• €950 million of 10.3-year notes priced at par to yield 3¼%, at the tight end of the 3¼% to 3½% yield talk. Initial talk was in the low-to-mid 3% area. Lead bookrunner Citigroup will bill and deliver.
• $1.35 billion of 10.3-year notes priced at par to yield 4¼%, in the middle of yield talk in the 4¼% area. Initial talk was in the low 4% area. BofA Securities Inc. was the lead bookrunner.
The United Kingdom-based telecom plans to use the proceeds for general corporate purposes, including payment of any distributions at closing of a joint venture between Liberty Global and Telefonica, among others. Proceeds will be escrowed until completion, with a special mandatory redemption if the joint venture does not close.
| Issuer: | Vmed 02 UK Financing I plc
|
| Securities: | Senior secured notes
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| Joint bookrunners: | Barclays, BBVA Securities Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., NatWest Markets Securities Inc., RBC Capital Markets Corp., Santander Investment Securities Inc. and SG Americas Securities LLC
|
| Trade date: | Sept. 10
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| Settlement date: | Sept. 24
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| Ratings: | Moody's: Ba3
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| S&P: BB-
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S
|
|
|
| Sterling tranche
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| Amount: | £600 million
|
| Maturity: | Jan. 31, 2029
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| Lead bookrunners: | Citigroup (bill and deliver), Goldman Sachs and HSBC
|
| Coupon: | 4%
|
| Price: | Par
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| Yield: | 4%
|
| Spread: | 385 bps
|
| Call protection: | 3.3 years
|
| Special call: | 10% of issue callable annually at 103 during non-call period
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| Price talk: | 4% to 4¼%
|
|
|
| Euro notes
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| Amount: | €950 million
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| Maturity: | Jan. 31, 2031
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| Lead bookrunners: | Citigroup (bill and deliver), Credit Suisse and Morgan Stanley
|
| Coupon: | 3¼%
|
| Price: | Par
|
| Yield: | 3¼%
|
| Spread: | 371 bps
|
| Call protection: | 5.3 years
|
| Special call: | 10% of issue callable annually at 103 during non-call period
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| Price talk: | 3¼% to 3½%
|
|
|
| Dollar notes
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| Amount: | $1.35 billion
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| Maturity: | Jan. 31, 2031
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| Lead bookrunner: | BofA
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
|
| Spread: | 362 bps
|
| Call protection: | 5.3 years
|
| Special call: | 10% of issue callable annually at 103 during non-call period
|
| Price talk: | 4¼% area
|
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