By Paul A. Harris
Portland, Ore., Aug. 12 - Network services provider tw telecom holdings, inc. priced $800 million of senior notes (B1/B+) in two tranches on Monday, according to a syndicate source.
The deal included a downsized $350 million tranche of new 10-year notes which priced at par to yield 6 3/8%.
The tranche was downsized from $400 million, and the yield printed on top of yield talk.
In addition, the Littleton, Colo.-based company priced an upsized $450 million tranche of notes mirroring its 5 3/8% senior notes due Oct. 1, 2022 at 96.25 to yield 5.913%.
The mirror notes tranche was upsized from $400 million, and the reoffer price came in the middle of the 96 to 96.5 price talk.
Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. and Well Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to refinance tw telecom's existing senior notes.
| Issuer: | tw telecom holdings inc.
|
| Amount: | $800 million
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., and Well Fargo Securities LLC
|
| Investor put: | 101% upon change of control
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
|
|
| New senior notes
|
| Amount: | $350 million, decreased from $400 million
|
| Maturity: | Sept. 1, 2023
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 378 bps
|
| First call: | Sept. 1, 2018 at 103.188
|
| Equity clawback: | 35% at 105.375 until Sept. 1, 2016
|
| Price talk: | 6 3/8% area
|
|
|
| Mirror notes
|
| Amount: | $450 million, increased from $400 million
|
| Maturity: | Oct. 1, 2022
|
| Security description: | Notes mirroring the 5 3/8% senior notes due Oct. 1, 2022
|
| Coupon: | 5 3/8%
|
| Price: | 96.25
|
| Yield to worst: | 5.913%
|
| Spread: | 339 bps
|
| First call: | Oct. 1, 2017 at 102.688
|
| Equity clawback: | 35% at 105.375 until Oct. 1, 2017
|
| Price talk: | 96 to 96.50
|
| Original issue: | $480 million priced at par on Sept. 27, 2012
|
| Fungibility: | Mirror notes will be non-fungible with the original notes
|
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