RLPC-UPDATE 1-Alltel may sell $2 bln high-yield bonds
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NEW YORK, April 3 (Reuters) - Rural mobile service provider Alltel Corp will attempt to sell $2 billion in high-yield bonds next week, two traders told Reuters Loan Pricing Corp on Thursday.
The bonds are part of a $5.2 billion cash-pay bond offering that backs the company's leveraged buyout. They are expected to have a 13 percent coupon.
Last November, Alltel managed to sell $1 billion in high-yield bonds that were part of a $2.2 billion senior pay-in-kind note offering. Pay-in-kind notes give the issuer the option of paying interest in additional notes instead of cash. Citigroup, Goldman Sachs, RBS and Barclays led that sale.
Alltel will possibly be joining First Data Corp. next when the two seek to offload portions of their respective LBO financings.
First Data is likely to market next week a $1.5 billion portion of its senior cash-pay LBO notes. First Data may also attempt to place next week another $2 billion of its pay-in-kind tranche and $2.5 billion of its senior subordinated tranche. (Reporting by Thomas Ryan; editing by Dena Aubin)
