By Paul A. Harris
Portland, Ore., Sept. 10 – Switch Telecommunication Co. priced an upsized $600 million issue of eight-year senior notes (B1/BB) at par to yield 3¾% on Thursday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 3¾% to 4% yield talk and tighter than early guidance in the low 4% area.
J.P. Morgan Securities LLC was the lead.
The Las Vegas-based technology company plans to use the proceeds to pay off its revolving credit facility, which has $280 million outstanding, to repay $182 million of term loan debt and for general corporate purposes.
| Issuer: | Switch Telecommunications Co.
|
| Amount: | $600 million, increased from $500 million
|
| Tenor: | Eight years
|
| Securities: | Senior notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Call protection: | Three years
|
| Trade date: | Sept. 10
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3¾% to 4%
|
| Marketing: | Roadshow
|
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