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NeuStar high-yield bonds price at par to yield 4.5%; terms

NeuStar today completed an offering of senior notes via bookrunners J.P. Morgan, Morgan Stanley, and RBC, according to sources. Demand for the issuer’s market debut allowed final pricing to come 12.5 bps inside of initial talk, which was in the 4.75% area. NeuStar, which provides voice and Internet routing and identification to carriers and businesses, is using funds raised from the deal to help pay down term debt, including the company’s $600 million facility put in place in November 2011, to back its purchase of TARGUS Information, a provider of caller-identification services. Alongside the bond deal is a $525 million pro rata loan refinancing package comprised of a $325 million A term loan and a $200 million revolver. NeuStar, based in Sterling, Va., was spun out of Lockheed Martin. Terms:

 

Issuer NeuStar
Ratings BB-/Ba3
Amount $300 million
Issue senior notes (144A)
Coupon 4.50%
Price 100
Yield 4.50%
Spread T+260
FRN eq. L+257
Maturity Jan. 15, 2023
Call nc5
Trade Jan. 11, 2013
Settle Jan. 23, 2013 (T+6)
Joint Bookrunners JPM/MS/RBC
Co-leads
Co’s.
Px talk 4.5% (initial 4.75% area)
Notes

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