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Peabody Energy places $3.1B, 2-part offering; terms

Peabody Energy today completed a $3.1 billion, two-part offering of senior notes through joint bookrunners Bank of America, Morgan Stanley, UBS, Citi, HSBC and RBS, according to sources. Demand allowed for a $350 million upsizing while terms printed at the middle of talk for the seven-year, and at the tight end for the 10-year. Proceeds will back its acquisition of Macarthur Coal. Peabody Energy and ArcelorMittal last month announced the acquisition of majority control of the Australian coal producer via joint venture PEAMCoal Pty. However, ArcelorMittal elected to sell its interest in the venture to Peabody. As such, Peabody will own 100% of PEAMCoal. Terms:

Issuer Peabody Energy
Ratings BB+/Ba1/BB+
Amount $1.6 billion
Issue senior notes (144A)
Coupon 6.00%
Price 100
Yield 6.00%
Spread T+456
FRN eq. L+428
Maturity Nov. 15, 2018
Call nc-life
Trade Nov. 7, 2011
Settle Nov. 15, 2011 (T+5)
Books BAML/MS/UBS/Citi/HSBC/RBS
Jt Leads
Co’s.
Px talk 6% area
Notes carries T+50 make-whole call.
Issuer Peabody Energy
Ratings BB+/Ba1/BB+
Amount $1.5 billion
Issue senior notes (144a)
Coupon 6.25%
Price 100
Yield 6.25%
Spread T+420
FRN eq. L+403
Maturity Nov. 15, 2021
Call nc-life
Trade Nov. 7, 2011
Settle Nov. 15, 2011 (T+5)
Books BAML/MS/UBS/Citi/HSBC/RBS
Jt Leads
Co’s.
Px talk +25-37.5 bps / 7-year
Notes carries T+50 make-whole call.
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Sprint completes $4B, 2-part offering; terms

Sprint Nextel today completed a two-part offering of notes via lead J.P. Morgan, according to sources. Pricing came in line with guidance, and the total size of the offering was increased from an initial target of $2.5-3 billion. Moreover, both are pegged about one point higher this morning post-break. Notably, the seven-year tranche was originally callable after three years, but it was revised to a bullet structure. Proceeds from the deal will be used for general corporate purposes, which might include redemptions or service requirements of outstanding debt, supporting network expansion, and the potential funding of Clearwire, according to the company. The company recently disclosed that it needs to raise $5-7 billion to help support a network upgrade and also said it expects to refinance $4 billion of debt coming due through October 2013. Ratings for the guaranteed unsecured notes came in at BB-/Ba3. The B+/B3 rating on the senior unsecured notes reflects one-notch downgrades on both sides. Terms:

Issuer Sprint Nextel
Ratings BB-/Ba3
Amount $3 billion
Issue guaranteed notes (144a)
Coupon  9%
Price  100
Yield  9%
Spread T+759
FRN eq. L+731
Maturity Nov. 15, 2018
Call nc-life
Trade Nov. 4, 2011
Settle Nov. 9, 2011
Books JPM/BAML/Barc/Citi/DB/GS
Jt Leads
Co’s.  Scot,WF +Will
Px talk 9% area
Notes  Structure revised from non-call three.
Issuer Sprint Nextel
Ratings B+/B3
Amount $1 billion
Issue senior notes (144a)
Coupon  11.5%
Price  100
Yield  11.5%
Spread  T+946
FRN eq.  L+929
Maturity Nov. 15, 2021
Call nc-life
Trade Nov. 4, 2011
Settle Nov. 9, 2011
Books JPM/BAML/Barc/Citi/DB/GS
Jt Leads
Co’s.  Scot,WF +Will
Px talk 11.5% area
Notes