By Andrea Heisinger
New York, April 24 - Cox Communications Inc. priced a combined $1.5 billion of bonds (Baa2/BBB/BBB+) in two tranches, a source away from the sale said.
A $1 billion tranche of 2.95% 10-year notes priced at 99.56 to yield 3% with a spread of Treasuries plus 130 basis points. Guidance was in the 130 bps to 135 bps range.
There was also $500 million of 4.5% 30-year bonds sold at 99.875 to yield 4.507% with a spread of 160 bps over Treasuries. The tranche was talked in the 160 bps to 165 bps range.
Pricing was done under Rule 144A and Regulation S.
Active bookrunners were J.P. Morgan Securities LLC and Wells Fargo Securities LLC. Passive bookrunners were Barclays, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used to fund a dividend and for debt repayment.
Cox was last in the market with a $1.5 billion offering of senior notes in two parts on Nov. 26, 2012. That sale included a 3.25% 10-year note priced at 160 bps over Treasuries along with a 4.7% 30-year bond priced at 190 bps over Treasuries.
The provider of phone, internet and TV service is based in Atlanta.
| Issuer: | Cox Communications Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC (active), Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC (passive)
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | April 24
|
| Settlement date: | May 1
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 30, 2023
|
| Coupon: | 2.95%
|
| Price: | 99.56
|
| Yield: | 3%
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | 130 bps to 135 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | June 30, 2043
|
| Coupon: | 4.5%
|
| Price: | 99.875
|
| Yield: | 4.507%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | 160 bps to 165 bps
|
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