By Paul A. Harris
Portland, Ore., Oct. 19 – Ligado Networks LLC priced $3.85 billion of secured PIK notes, according to market sources.
The deal featured a downsized $2.85 billion issue of three-year first-lien notes (Caa1) that priced at par to yield 15˝%. The final tranche size came as the company decreased the amount of first-lien debt it was offering from $3.26 billion, intended to be split between a term loan and notes. The loan was abandoned.
The yield printed on top of yield talk. Initial guidance had the first-lien tranche coming with a 13% coupon (9% PIK and 4% cash), with a 96 original issue discount.
Ligado also priced a downsized $1 billion tranche of restructured 17˝% 3.5-year second-lien PIK notes at 75. The size of the second-lien tranche was reduced from $1.04 billion. It priced on top of talk. Initial guidance would have set the coupon 300 basis points behind the first-lien notes, at OID 96.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Jefferies LLC were the bookrunners.
Proceeds will be used to repay the existing first-lien senior secured loan and 1.5-lien loan, to make a $700 million payment to Inmarsat and to fund an escrow account with two years of interest reserve.
Ligado is a Reston, Va.-based satellite communications company.
| Issuer: | Ligado Networks LLC
|
| Amount: | $3.85 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Jefferies LLC
|
| Settlement date: | Oct. 23
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| First-lien PIK notes
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| Amount: | $2.85 billion, decreased $3.26 billion
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 15˝%
|
| Price: | Par
|
| Yield: | 15˝%
|
| Spread: | 1,532 bps
|
| Call protection: | Non-callable
|
| Rating: | Moody’s: Caa1
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| Price talk: | 15˝%
|
|
|
| Second-lien PIK notes
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| Amount: | $1 billion, decreased from $1.04 billion
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| Maturity: | May 1, 2024 (tenor reduced to 3.5 years from four years)
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| Coupon: | 17˝%
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| Price: | 75
|
| Spread: | 2,913 bps
|
| Call protection: | Non-callable
|
| Price talk: | 17˝%
|
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