New Issue: Cincinnati Bell prices $500 million 8¼% eight-year notes at 98.562 to yield 8 ½%

By Paul A. Harris

St. Louis, Sept. 30 - Cincinnati Bell, Inc. priced a $500 million issue of 8¼% eight-year senior notes (Ba3/B+) at 98.562 to yield 8½% on Wednesday, according to an informed source.

The yield printed at the wide end of the 8¼% to 8½% price talk.

Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc. and RBS Securities Inc. were joint bookrunners.

Proceeds will be used for general corporate purposes, including debt repayment.

Issuer:	Cincinnati Bell, Inc.
Face amount:	$500 million
Proceeds:	$492.81 million
Maturity:	Oct. 15, 2017
Security description:	Senior notes
Bookrunners:	Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc., RBS Securities Inc.
Joint-lead managers:	Wells Fargo Securities, PNC Capital Markets LLC
Coupon:	8¼%
Price:	98.562
Yield:	8½%
Spread:	533 bps
Call features:	Make-whole call at Treasuries plus 50 bps, then callable on Oct. 15, 2013 at 104.125, 102.063, par on or after Oct. 15, 2015
Equity clawback:	For 35% at 108.25 until Oct. 15, 2013
Trade date:	Sept. 30
Settlement date:	Oct. 5
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	8¼% to 8½%

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