IFR 02.29.2020

62 International Financing Review February 29 2020

For leverage of more than 4.0 times, the

term loan pays 275bp over Euribor and the

RCF pays 250bp; for 3.5-4.0 times the TL pays

225bp and the RCF pays 200bp; for 3.0-3.5

times it is 200bp and 175bp; for 2.5-3.0 times

it is 175bp and 150bp; for 2.0-2.5 times it is

150bp and 125bp; for 1.5-2.0 times it is

125bp and 100bp; and for lower than 1.5

times it is 100bp and 75bp.

4HEREûISûAûûmOOR

4HEûPREVIOUSûlNANCINGûWHICHûWASû

arranged in July 2012, paid 350bp over

Euribor.

BNP Paribas and Morgan Stanley are

coordinators and active bookrunners on the

SENIORûDEBTûlNANCINGûALONGSIDEûRoyal Bank of

Canada, Barclays, Bank of America, Credit Suisse

and JP Morgan as mandated lead arrangers

and bookrunners.

Royal Bank of Canada is facility agent.

Global Blue is expected to have a

net-debt-to-Ebitda ratio of 3.3 times

with a potential rapid deleveraging

thereafter.

The merger will see Far Point and new

investors invest around US$1bn in Global

"LUEûREmECTINGûAûTOTALûENTERPRISEûVALUEûOFû

€2.3bn.

Far Point is co-sponsored by institutional

asset manager Third Point and former NYSE

president Thomas Farley.

The new investors, anchored by Ant

Financial Services Group, a member of the

Chinese e-commerce giant Alibaba Group,

and Third Point, have committed to invest a

total of US$350m.

Existing owners of Global Blue, including

3ILVERû,AKEûWILLûREMAINûSIGNIlCANTû

shareholders in the company.

The merger is expected to close during

the second quarter.

The new public company will be

incorporated in Switzerland and will trade

as Global Blue on the NYSE.

ARBONIA EYES REFI

Building supplies company ARBONIA intends

TOûRElNANCEûITSû3&RMû53M  û

syndicated loan in 2020.

The facility, which matures in September

2021, was put in place in September 2016 as

part of a wider SFr500m loan.

4HEûlNANCINGûINCLUDEDûAû3&RMûONE

YEARûTERMûLOANûTOûlNANCEûTHEûCASHûPORTIONûOFû

Arbonia’s acquisition of Looser.

There was also a SFr400m credit facility

that was reduced to SFr350m in 2017 after

the sale of Arbonia’s industrial services unit.

The company tapped the Schuldschein

market in mid-April 2018 for €125m to back

its acquisition of Belgian radiator company

Vasco Group.

Commerzbank and LBBW arranged the

33$ûWHICHûCOMPRISEDûlVEûSEVENûANDû

YEARûlXED

RATEûTRANCHES

UK

JOHN MENZIES BAGS REFI

Airport services and distribution group JOHN

MENZIESûHASûRElNANCEDûITSûSYNDICATEDûLOANSû

as it faces headwinds from the outbreak and

continued spread of coronavirus.

The company’s £325m-equivalent of loans

have been extended to 2025 from 2021.

4HEûlNANCINGûFEATURESûIMPROVEDû

covenants.

John Menzies said that it expects an adverse

PROlTûIMPACTûINûTHEûYEARûOFûaM

aMû

assuming the impact of the virus subsides

towards the end of the second quarter.

The impact on the company is at its

greatest in its operations in Macau where it

handles Chinese carriers across its network.

With only has limited visibility of what

mIGHTûSCHEDULESûAREûBEINGûIMPACTEDûINTOû

March and beyond the company said it is

DIFlCULTûTOûASSESSûHOWûEXTENSIVEûTHEûIMPACTû

could be at this point.

John Menzies tapped the loan market in

2016 for US$450m-equivalent in loans

backing its acquisition of aviation services

PROVIDERû!3)'ûANDûTOûRElNANCEûITSûBANKû

facilities.

4HEûlVE

YEARûlNANCINGûWHICHûWASû

arranged by Barclays and HSBC, comprises a

US$250m term loan and a £150m revolving

credit facility paying margins of 150bp-

300bp over Libor.

BAT LOOKS TO REFI RCF

BRITISH AMERICAN TOBACCOûINTENDSûTOûRElNANCEû

ITSûaBNûREVOLVINGûCREDITûFACILITYûINûTHEûlRSTû

half of 2020.

4HEûlNANCINGûWILLûINCLUDEûAûaBNû

DAYû

tranche with two one-year extension

Abu Dhabi approaches

relationship banks

„ UAE Sovereign seeks debut US$2bn loan

The government of Abu Dhabi has approached

its relationship banks for a debut US$2bn loan.

The move is an effort by the Abu Dhabi,

the largest emirate in the UAE, to diversify its

sources of liquidity as it faces pressure from low

oil prices.

Middle East syndicated loan volume has been

falling for several years, and in 2019 it dropped

34% to US$63.85bn from US$96.46bn in 2018,

according to LPC data.

This fall was mainly down to a lack of

sovereign borrowing, which had helped buoy

volumes in previous years, leaving plenty of

pent-up appetite for Abu Dhabi’s debut loan.

“They could easily get more than US$2bn,

but volume is not the intention of this exercise,”

said one banker. “This is a very targeted move

with relationship banks to test the water in the

syndicated loan space.”

The government is self-arranging the loan

and is talking specifically to banks that led its

previous bond issuances.

The emirate sold its latest international bonds

in September last year, raising US$10bn. They

were used for budgetary purposes.

BNP Paribas, Citi, FAB, HSBC, JP Morgan and

MUFG were lead banks on the bonds.

ON HOLD

Sources told Reuters earlier this month that the

emirate had been in discussions with banks for

potential issues in the debt markets this year

as part of plans to engage global fixed-income

investors on a more regular basis.

Discussions with potential bond advisers

were put on hold about two weeks ago, Reuters

reported.

It would make sense for the emirate to tap

different pools of liquidity after the US$10bn

jumbo bond, another source told Reuters.

Governments in the Gulf region have resorted

to large amounts of debt finance over the past

few years to offset the impact of lower oil prices

on their revenues.

After oil prices dropped in 2014 and 2015, Abu

Dhabi reduced public spending and increased

dividends from state-owned entities.

It had forecast a deficit of Dh27.2bn

(US$7.41bn) for 2019, according to its latest bond

prospectus.

Rated AA by S&P and Fitch and Aa2 by

Moody’s, Abu Dhabi has one of the world’s

largest sovereign net foreign asset positions and

low levels of debt, but its fiscal balance depends

almost entirely on revenue from hydrocarbon

royalties and taxes and dividends received from

Abu Dhabi National Oil Company.

ADNOC was last in the loan market in January

last year when it raised a US$2.5bn loan from a

group of banks, including Abu Dhabi Commercial

Bank, Bank of America, BNP Paribas, First Dhabi

Bank, HSBC, JP Morgan, MUFG, Mizuho Bank,

Societe Generale, SMBC and Union National Bank.

Sandrine Bradley

9 IFR Loans 2322 p 55 - 72 .indd 62 28 / 02 / 2020 18 : 11 : 31