Numericable Wraps Record High Yield Bond Financing

Numericable Group today completed a €7.9 billion-equivalent offering of secured notes via global coordinators J.P. Morgan (B&D), Deutsche Bank , and Goldman Sachs. Proceeds, along with €3.7 billion of covenant-lite six-year cross-border term loans, as well as a €4.7 billion rights issue (which is being financed via €4.15 billion of cross-border bonds by Altice), will be used to finance the cash consideration of Numericable’s purchase of SFR from Vivendi (€13.5 billion), and to refinance debt (€2.53 billion).

As noted, at $10.86 billion (equivalent), the deal is the largest cross-border high yield bond offering ever, the second-largest U.S. offering, and includes the third-largest single tranche ever sold (the $4 billion, eight-year tranche). Where Numericable stands:

The mega-deal was re-cut numerous times. With regard to the three U.S. dollar tranches, the five- and eight-year tranches came at the tight end of guidance, while the 10-year notes printed tighter than guidance. The five-year deal was upsized from $920 million, to $1.8 billion, and finally to $2.4 billion. The eight-year deal began at $2 billion, was raised to $4.2 billion, and then reduced to $4 billion. The 10-year deal was downsized to $1.35 billion from $2 billioBoth the euro eight- and 10-year tranches printed tighter than guidance. The eight-year deal was upsized from €1 billion to €1.6 billion, and then finally reduced to €1 billion, while the 10-year deal was cut from €1 billion to €915 million, and then upsized to €1.25 billion. A proposed €500 million five-year tranche was nixed. The deal, by tranche: