Sprint set to print biggest US high yield deal of year
NEW YORK, Sept 4 (IFR) - Sprint Corp is set to print the biggest US high yield deal of the year on Wednesday, giving a shot of confidence to the market that is expecting to see as much as USD30bn of supply this month.
Sprint announced the deal earlier on Wednesday, seizing what is expected to be a brief market window this week, and said late afternoon that it would print at least USD4bn from the two-part offering.
If successful, the deal would mark the largest high yield transaction year-to-date, beating both Metropcs Wireless' and Intelsat's USD3.5bn bonds which priced in March, according to SDC/IFR data.
It will also tie with Sprint's own USD4bn deal of late 2011 and RJR Holdings' deal from 1989 as the 8th largest high-yield deal of all time.
The deal will be split between an eight-year non-call life and 10-year non-call life tranches, which are expected to be rated B1/BB-. JP Morgan, Deutsche Bank, BofA Merrill, Citi, Credit Agricole, Credit Suisse, Goldman Sachs, RBC, Scotia, Wells Fargo and Williams are running the trade.
The exact size of each tranche is yet to be fixed, but guidance has been set at 7.25% area on the eight-year and 7.875% area on the ten-year. Books closed at 3:30pm.
Proceeds will be used for general corporate purposes, which may include repayment of debt, network expansion and modernization.
Softbank bought about 78% of the No. 3 US mobile network operator in July after a bitter takeover battle with Dish, which eventually bowed out of the race, and raised its stake further last month after buying more common stock.
SoftBank, which is run by founder Masayoshi Son, said the share purchases, made through subsidiary Galaxy Investment Holdings, were intended to increase the company's ownership in Sprint to about 80%.