Published on 9/16/2016 in the Prospect News High Yield Daily.
New Issue: Cincinnati Bell prices $425 million eight-year notes at par to yield 7%
By Paul A. Harris
Portland, Ore., Sept. 16 – Cincinnati Bell Inc. priced a $425 million issue of eight-year senior notes (B3/B) at par to yield 7% on Friday, according to a syndicate source.
The yield printed at the tight end of the 7% to 7¼% yield talk. Initial guidance was 7½%.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the joint bookrunners.
The Cincinnati-based telephone company plans to use the proceeds to refinance its 8 3/8% senior notes due 2020.
| Issuer: | Cincinnati Bell Inc.
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| Amount: | $425 million
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| Maturity: | July 15, 2024
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| Securities: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co.
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| Co-managers: | PNC Capital Markets, Regions, Barclays, Citizens
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Spread: | 543 bps
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| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2019, then callable at 105.25
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| Equity clawback: | 40% at 107 until Sept. 15, 2019
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| Trade date: | Sept. 16
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| Settlement date: | Sept. 22
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7% to 7¼%
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| Marketing: | Roadshow
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