By Cristal Cody
Chicago, Jan. 17 – Cox Communications, Inc. priced a trifold $1.5 billion offering (Baa2/BBB/BBB+) of notes on Tuesday, according to a market source.
The largest part of the deal priced as $850 million of new notes due Dec. 15, 2053. The coupon priced at 5.8%, or at Treasuries plus 148 basis points. Initial talk was in the 175 bps area.
The company also conducted two taps on existing notes.
The first add-on was for the 5.45% notes due Sept. 15, 2028. Cox added $350 million to the notes, at Treasuries plus 105 bps. Price talk was 25 bps higher, in the 130 bps area. This will lift the amount outstanding to $850 million.
The second tap was to the 5.7% notes due June 15, 2033. An additional $300 million will be added to an existing $500 million, priced at Treasuries plus 130 bps. Price talk was in the 150 bps area.
Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC were bookrunners on the Rule 144A and Regulation S offering.
The notes are guaranteed by Cox Enterprises, Inc.
Proceeds will be used for general corporate purposes.
Cox is a broadband communications and entertainment company based in Atlanta.
| Issuer: | Cox Communications, Inc.
|
| Guarantor: | Cox Enterprises, Inc.
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| Amount: | $1.5 billion
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| Issue: | Notes
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
|
| Trade date: | Jan. 16
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| New notes
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| Amount: | $850 million
|
| Maturity: | Dec. 15, 2053
|
| Coupon: | 5.8%
|
| Spread: | Treasuries plus 148 bps
|
| Price talk: | Treasuries plus 175 bps area
|
|
|
| 2028 tap
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| Amount: | $350 million
|
| Maturity: | Sept. 15, 2028
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| Coupon: | 5.45%
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| Spread: | Treasuries plus 105 bps
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| Price talk: | Treasuries plus 130 bps area
|
| Total issue size: | $850 million with add-on
|
|
|
| 2033 tap
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| Amount: | $300 million
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| Maturity: | June 15, 2033
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| Coupon: | 5.7%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | Treasuries plus 150 bps area
|
| Total issue size: | $800 million with add-on
|
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