The deal was split between USD400m in seven-year non-call four senior opco notes (upsized from USD375m) and USD125m in 7.5-year non-call four holdco PIK toggle notes (downsized from USD150m) that JP Morgan sole led.
The PIK toggle notes, rated Caa1/CCC+, priced at 15% at par (half cash pay/half PIK with 2.5% warrants), which was in line with talk. The senior opco notes, rated B3/CCC+, priced at 10.25% at par, also in line with guidance.
In the secondary market, the opco notes are trading at 102-102.50. The PIK toggle issue is up at 101.50-102.50.
Cumulus Media is expected with its USD610m eight-year senior notes offering through JP Morgan, UBS, Macquarie and RBC joint books. The offering, talked at 7.75%-8%, will refinance debt at CMP Susqueshanna Corp and Citadel Broadcasting in conjunction with its acquisitions.
Earlier this year, Cumulus Media announced the acquisition of the remaining 75% of CMP Susquehanna it did not already own, followed by an announcement that it would purchase Citadel Broadcasting for USD37 per share in cash and Cumulus stock. Crestview Partners and Macquarie Capital will provide USD500m in equity financing.
The new notes have a special call at 10% per year at 103, which will be removed if the Citadel acquisition does not close, but the CMP Susquehanna acquisition does. The coupon will also step up 50bp if the Citadel acquisition doesn't close. Pricing is expected this afternoon.
Elsewhere, Credit Suisse and BofA Merrill are leading a USD100m add-on to Yonkers Racing's 11.375% notes due 2016, with pricing expected today. Price talk is 109.25-109.50 and the notes are immediately fungible with the original USDS225m priced in July 2009.
Xinergy's USD200m eight-year non-call four senior secured notes expected today at 9.50% area via UBS sole books. Proceeds will repay senior secured notes and be used for capex and general corporate purposes.
Lee Enterprises is likely to price its USD680m first lien six-year non-call three senior secured notes via Credit Suisse and Deutsche Bank. Talk is 11% area. Another USD375m in second lien loans (switched from bond form) is also being marketed. In addition, the company is offering a concurrent private placement of common shares to buyers of the second lien loan for a total of 8,928,175 total common shares.
Also this morning, US Foodservice has announced a USD400m eight-year non-call three senior notes deal via Deutsche Bank, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley and Wells Fargo joint books. The roadshow will begin Monday with pricing expected mid next week. Proceeds will refinance debt. US Foodservice is owned by Clayton Dubilier & Rice and KKR.
Finally, Sensata Technologies made a preliminary announcement that, as part of a debt refinancing plan, it will offer USD600m senior notes via Barclays and Morgan Stanley. The proceeds, along with a USD1.2bn seven-year term loan and a USD250m revolver which are launching Monday, will be used to refinance all of its debt. Bain Capital owns the Netherlands-based company.