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Freescale Semiconductor four-part bonds price; terms

New York, Nov. 16 (LCD) – The $5.95 billion, four-part bond offering from Freescale Semiconductor was completed this afternoon via joint bookrunners Credit Suisse, Citigroup, J.P. Morgan, Lehman Brothers and UBS, according to sources. The deal is the largest new issue ever in the market, but it was still more than three times oversubscribed amid considerably robust market conditions and strong fundamental demand for the credit. Terms came at the wide end of guidance, although the issuer had tightened guidance by 25 bps in the eleventh hour due to strong demand.

The bonds, issued by Firestone Acquisition, back the $19 billion take-private buyout of the company through a merger of Freescale with an affiliate of private equity firms Blackstone, Carlyle, Permira and Texas Pacific Group. Additional support comes from a $4.25 billion senior secured financing and $7.15 billion of sponsor equity, with $4.15 billion from Blackstone and $1 billion each from the other three backers. Terms:

Issuer: Firestone Acquisition (Freescale Semiconductor)
Ratings: B/B1
Size: $2.35 billion
Issue: senior notes (144A)
Coupon: 8.875%
Price: 100.00
Yield: 8.875%
Spread: +424
LIBOR Eq: +377
Maturity: 15 Dec. 2014
Call: nc4
Trade: 16 Nov. 2006
Settle: 1 Dec. 2006 (t+10)
Books: CS/CITI/JPM/LEH/UBS
Co’s: BEAR
Px Talk: 8.75-8.875% (revised from 9-9.25%)
Notes: n/a
Issuer: Firestone Acquisition (Freescale Semiconductor)
Ratings: B/B1
Size: $1.5 billion
Issue: senior PIK toggle notes (144A)
Coupon: 9.125% (steps 75 bps when payment in-kind)
Price: 100.00
Yield: 9.125%
Spread: +449
LIBOR Eq: +402
Maturity: 15 Dec. 2014
Call: nc4
Trade: 16 Nov. 2006
Settle: 1 Dec. 2006 (t+10)
Books: CS/CITI/JPM/LEH/UBS
Co’s: BEAR
Px Talk: 25 bps behind 8-year (revised from 25-50 bps back)
Notes: n/a
Issuer: Firestone Acquisition (Freescale Semiconductor)
Ratings: B/B1
Size: $500 million
Issue: senior floating-rate notes (144A)
Coupon: L+387.5
Price: 100.00
Yield: L+387.5
Maturity: 15 Dec. 2014
Call: nc2
Trade: 16 Nov. 2006
Settle: 1 Dec. 2006 (t+10)
Books: CS/CITI/JPM/LEH/UBS
Co’s: BEAR
Px Talk: L+375-387.5 (revised from L+400-425)
Notes: n/a
Issuer: Firestone Acquisition (Freescale Semiconductor)
Ratings: B/B2
Size: $1.6 billion
Issue: senior subordinated notes (144A)
Coupon: 10.125%
Price: 100.00
Yield: 10.125%
Spread: +548
LIBOR Eq: +497
Maturity: 15 Dec. 2016
Call: nc5
Trade: 16 Nov. 2006
Settle: 1 Dec. 2006 (t+10)
Books: CS/CITI/JPM/LEH/UBS
Co’s: BEAR
Px Talk: 125 bps behind 8-year fixed (revised from 125-150 back)
Notes: n/a

 

 

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HCA three-part bonds price; terms

New York, Nov. 9 (LCD) – HCA today completed a $5.7 billion LBO bond offering via joint bookrunners Citigroup, Bank of America, J.P. Morgan, Merrill Lynch, Deutsche Bank, and Wachovia, sources said. The deal saw blowout demand, allowing for pricing at the tight end of guidance for the eight-year notes and inside of guidance by 12.5 bps for the 10-year piece. A third tranche of toggle notes came at talk. The gargantuan transaction did little to weigh on healthy market tone and instead boosted confidence toward a growing pipeline. Gray markets for the paper were busy in the 102.5-103 context, and the paper since has freed for trade and has risen to the 103.5 context in heavy volumes, sources said.

Net proceeds and $16.8 billion of senior secured loans support the $33 billion buyout of HCA by Bain Capital, KKR, Merrill Lynch & Co. and HCA co-founder Thomas Frist, Jr. The purchase price calls for $21.3 billion in cash, or $51 per share, plus the assumption of $11.7 billion in debt. Terms:

Issuer: HCA (Hercules Acquisition)
Ratings: BB-/B2
Size: $1 billion
Issue: senior second-lien secured notes (144A)
Coupon: 9.125%
Price: 100.00
Yield: 9.125%
Spread: +449
LIBOR Eq: +400
Maturity: 11/15/2014
Call: nc4
Trade: 11/09/2006
Settle: 11/17/2006 (t+6)
Books: CITI/BAS/JPM/ML/DB/WACH
Px Talk: 9.25% area
Notes: calls: 2010 @104.563; 2011 @102.281; 2012 @par
Issuer: HCA (Hercules Acquisition)
Ratings: BB-/B2
Size: $3.2 billion
Issue: senior second-lien secured notes (144A)
Coupon: 9.25%
Price: 100.00
Yield: 9.25%
Spread: +462
LIBOR Eq: +409.5
Maturity: 11/15/2016
Call: nc5
Trade: 11/09/2006
Settle: 11/17/2006 (t+6)
Books: CITI/BAS/JPM/ML/DB/WACH
Px Talk: 9.375-9.50%
Notes: calls: 2011 @104.625; 2012 @103.083; 2013 @101.542; 2014 @par
Issuer: HCA (Hercules Acquisition)
Ratings: BB-/B2
Size: $1.5 billion
Issue: senior second-lien secured PIK toggle notes (144A)
Coupon: 9.625% (steps 75 bps when PIK)
Price: 100.00
Yield: 9.625%
Spread: +499
LIBOR Eq: +446.5
Maturity: 11/15/2016
Call: nc5
Trade: 11/09/2006
Settle: 11/17/2006 (t+6)
Books: CITI/BAS/JPM/ML/DB/WACH
Px Talk: 25 bps behind 10-year (9.625-10%)
Notes: calls: 2011 @104.813; 2012 @103.208; 2013 @101.604; 2014 @par; PIK option only for first five years, then cash-only interest