IFR 02.29.2020

68 International Financing Review February 29 2020

In May 2015, Octave, then known as

TouchTunes, raised a US$257.5m credit

facility that supported private investment

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of the company.

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US$62.5m was also raised in seven-year

second-lien debt.

BORROWERS PULL LOANS

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have forced two opportunistic borrowers to

pull their loan deals from the primary

sector.

The stock market freefall continued

through to Friday morning as investors

mOCKEDûTOûSAFEûHAVENSûSUCHûASû53û4REASURIESû

and other government bonds while fears

mounted that coronavirus will stunt global

economic growth.

In the loan market, energy company

NORTHRIVER MIDSTREAM withdrew a US$535m

add-on Term Loan B, a deal it intended to

USEûTOûRElNANCEûDEBT

Fire safety company MINIMAX VIKING also

yanked a US$1.145-equivalent, dual-

currency repricing effort.

The two opportunistic borrowers that

sought to take advantage of the benign

credit conditions and strong investor

appetite for debt were blindsided by the

IMPACTûOFûTHEûVIRUSûANDûCOULDûBEûTHEûlRSTûOFû

more primary deals to hit the pause button.

“This whole year it’s been about

opportunistic deals, but these companies

will need stability in the market before they

can do these types of deals,” said one

banker.

NorthRiver Midstream had offered its

fungible add-on at 325bp over Libor with a

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for six months. The TLB matures in October

2025.

Citigroup, CIBC, Credit Suisse, HSBC, RBC

Capital Markets and Scotiabank were

arranging the deal.

Minimax Viking had given lenders until

February 26 to commit to terms on a

US$590m and €506m dual-tranche

repricing. The dollars were being shopped at

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euros were being offered at 250bp over

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Both tranches came with no OID and 101

soft call protection for six months.

Deutsche Bank was leading this two-part

offering.

ASTRA HIKES MARGIN

Software company ASTRA has increased the

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to a US$435m transaction that backs the

takeover of the company by Veritas Capital

from Leeds Equity Partners.

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98.5 OID and 101 soft call protection for six

months.

The UBS-led loan was initially shopped at

500bp over Libor with a 99 OID.

A US$110m eight-year second-lien loan

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and 97 OID.

Astra is also raising a US$40m revolving

credit facility.

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loan is rated B2/B and the second-lien debt is

rated Caa2/CCC.

Proceeds from the term loans, plus rolled

over equity from Leeds and new equity from

Veritas will support the takeover, pay fees

and expenses related to the transaction, and

allocate US$40m of cash to the company’s

balance sheet, Moody’s said.

Astra is the combination of Leeds’ two

portfolio companies, Campus Management

and Edcentric Holdings.

Veritas has agreed to acquire a majority

stake in the two companies. Leeds will

continue as a minority investor in the

combined company.

Adjusted debt to Ebitda will ease towards

9.0 times by the end of this year, Moody’s said.

Low-cost airline JETBLUE AIRWAYS has

completed an amendment to its US$550m

revolving credit facility to include a

sustainability-linked provision to the

transaction.

BNP Paribas was the sustainability

structuring agent on the deal.

The senior secured facility includes a

pricing mechanism related to the margin

and commitment fee on the loan, which is

then linked to JetBlue’s environmental,

social and governance score provided by

ESG evaluator Vigeo Eiris.

In 2018, JetBlue started to review the

sustainability strategies of its lenders and is

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institutions with stronger ESG policies.

This year, JetBlue said it will operate

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offsetting emissions from jet fuel. The

company aims to reduce CO2 emissions by

more than 7.7 million tonnes this year.

The airline also aims to start using

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Francisco.

TECOMET has increased its add-on loan to

US$165m.

The loan was issued at a 99.5 OID.

The US$165m add-on loan is fungible with

the company’s senior credit facilities priced

at 350bp over Libor and due May 2024. It

was originally marketed as a US$135m loan.

Proceeds will be used to fund a

shareholder distribution.

Jefferies, Antares and KKR Capital Markets

arranged the loan.

Tecomet provides high precision

manufacturing services to medical device

and aerospace and defence manufacturers.

APTOS WRAPS LBO LOAN

Retail software company APTOSûHASûSETûlNALû

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Term Loan B. The seven-year loan was priced

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OID.

The loan will amortise at 1% per annum.

Soft call protection will be reset at 101 for 12

months.

Goldman Sachs was lead left. ING and

KeyBank also led the transaction.

Proceeds from the loan, and a

contribution of new common equity from

Goldman Sachs Merchant Banking and

rollover equity from management, will fund

the leveraged buyout of Aptos from Apax

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according Moody’s.

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rated B3/B–.

Power generator INVENERGY has repriced its

US$390m Term Loan B. The TLB was offered

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and 101 soft call protection for six months.

Initially, Invenergy shopped the loan at

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loan, led by Credit Suisse and Goldman Sachs,

matures in August 2025.

In June 2018, Invenergy raised a US$350m

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BB.

Invenergy has a portfolio of seven

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with a 2.68 gigawatt capacity.

EUROPE/MIDDLE EAST/

AFRICA

BOELS OUTLINES PRICE TALK

$UTCHûEQUIPMENTûRENTALûlRMûBOELS has

released price talk on a €1.61bn term loan B

that will back its €614m acquisition of

Finland’s Cramo.

The TLB, which matures in February 2027,

is guided at 300bp-325bp over Euribor with

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soft-call protection for six month and has a

maintenance leverage covenant.

There is also a €200m revolving credit

facility that will mature in August 2026.

Proceeds will be used to fund the

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Cramo’s debt and pay transaction costs.

Corporate and issue ratings are BB-/BB-/B1

with a stable outlook.

9 IFR Loans 2322 p 55 - 72 .indd 68 28 / 02 / 2020 18 : 11 : 32