4 Feb, 2021

Victra prices upsized secured notes at par to yield 7.75%; terms

Victra Finance Corp. has priced $660 million of five-year senior secured notes at revised talk, sources said. The offering was upsized from $635 million and marketed via bookrunners UBS (lead left) and Truist.

Proceeds will be used to refinance the company's existing term loan and pay a dividend to shareholders. Sources said the size of the dividend payment, previously announced as $90 million, will be increased due to the upsized bond tranche.

Issuing entities are LSF9 Atlantis Holdings, LLC and Victra Finance Corp.

Victra is the largest Verizon Wireless authorized retailer in the U.S. and sells wireless devices including smartphones, voice phones, tablets and related accessories. S&P Global Ratings and Moody's this week revised the outlook on the company to stable, from negative, to reflect expectations for continued improvement in credit metrics following sequential improvement in the latest quarter. Fitch also has a stable outlook on the company. Terms:

Issuer LSF9 Atlantis Holdings LLC and Victra Finance Corp.
Ratings B/B2/B+
Amount $660 million
Issue Senior secured notes (144A/Reg S for life)
Coupon 7.75%
Price 100
Yield 7.75%
Maturity Feb. 15, 2026
Call Non-call two (first call at par plus 50% coupon)
Trade (date) Feb. 4, 2021
Settle Feb. 19, 2021 (T+10)
Bookrunners UBS/Truist
Price talk 7.75%, revised from 7.75%-8%; 8% area initial price thoughts
Notes Upsized from $635 million; make-whole at T+50; issuer may redeem
up-to-10% of notes at 103% per annum until Feb. 15, 2023;
change of control put at 101; up-to-40% equity claw at 107.75% until
Feb. 15, 2023.