YPG 4-Year Bond Issue comes with 6.50% Coupon

Last week, YPG announced:

an offering by YPG Holdings Inc. (the “Company”) of Medium Term Notes for gross proceeds of $90 million. The net proceeds from the issuance of the Notes will be used for general corporate purposes, to repay indebtedness outstanding under the Company’s commercial paper program and to repay an amount of $50 million under its term credit facility. This offering is scheduled to close on or about July 3, 2009.

Pursuant to this offering, the Company will issue $90 million of 6.85% Series 8 Notes (compounded semi-annually), which will be dated July 3, 2009, will mature on December 3, 2013 and will be issued at a price of $100.00.

The Series 8 Notes will be guaranteed by Yellow Pages Income Fund (TSX: YLO.UN), YPG Trust, YPG LP, Yellow Pages Group Co., Trader Corporation, YPG (USA) Holdings, Inc., Yellow Pages Group, LLC and YPG Directories, LLC. The Notes have been assigned a rating of BBB (high) with a stable trend by DBRS Limited and a rating of BBB- with a stable outlook from Standard & Poor’s Rating Service.

… and now they have announced:

an offering by YPG Holdings Inc. (the “Company”) of Medium Term Notes Series 9 and an additional offering of Medium Term Notes Series 8 for combined gross proceeds of $165 million. All of the net proceeds from the issuance of the Series 9 Notes and Series 8 Notes will be used to repay indebtedness outstanding under the Company’s term credit facility. Both offerings are scheduled to close on or about July 10, 2009.

Pursuant to these offerings, the Company will issue $130 million of 6.50% Series 9 Notes (compounded semi-annually), which will be dated July 10, 2009, will mature on July 10, 2013 and will be issued at a price of $100.00. The Company will also increase the size of its $90 million offering of 6.85% Series 8 Notes, which were issued on July 3, 2009, by issuing a further $35 million of 6.85% Series 8 Notes (compounded semi-annually). The Series 8 Notes mature on December 3, 2013.

The Series 9 Notes and the Series 8 Notes will be guaranteed by Yellow Pages Income Fund (TSX: YLO.UN), YPG Trust, YPG LP, Yellow Pages Group Co., Trader Corporation, YPG (USA) Holdings, Inc., Yellow Pages Group, LLC and YPG Directories, LLC. The Series 9 Notes and Series 8 Notes have been assigned a rating of BBB (high) with a stable trend by DBRS Limited and a rating of BBB- with a stable outlook from Standard & Poor’s Rating Service.

YPG is certainly showing that it can access the bond market and is chipping away steadily at its bank debt (as noted in mid-June); it’s certainly encouraging, but a 10-year issue would increase confidence in YPG.PR.B given the term structure of their debt.

One Response to “YPG 4-Year Bond Issue comes with 6.50% Coupon”

  1. […] noted in July that a ten-year issue would increase confidence and now they’ve done […]

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