By Paul A. Harris
Portland, Ore., Sept. 15 – RCN Telecom Services, LLC and RCN Capital Corp. priced a $105 million tack-on to their 8½% senior notes due Aug. 15, 2020 (Caa1/CCC+/) at 102 to yield 7.996% in a quick-to-market transaction on Monday, according to an informed source.
The deal was upsized from $100 million.
The reoffer price came in the middle of the 101.5 to 102.5 price talk.
Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Proceeds will be used to fund a return of capital to shareholders.
The prospective issuer is a cable company operating in Boston, Chicago, Washington, D.C., Lehigh Valley, Pa., New York City and Philadelphia.
| Issuers: | RCN Telecom Services, LLC and RCN Capital Corp.
|
| Face amount: | $105 million
|
| Proceeds: | $107 million
|
| Maturity: | Aug. 15, 2020
|
| Security description: | Tack-on to 8½% senior notes due Aug. 15, 2020
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8½%
|
| Price: | 102
|
| Yield to worst: | 7.996%
|
| First call: | Aug. 15, 2016 at 106.375
|
| Equity clawback: | 40% 108.5 until Aug. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101.5 to 102.5
|
| Marketing: | Quick to market
|
| Original issue: | $200 million priced at par in August 2013
|
| Fungibility: | Tack-on notes will be immediately fungible with the original notes
|
| Total issue size: | $305 million
|
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