International Financing Review February 29 2020 69LOANS LEVERAGED LOANSCredit Suisse, ING, ABN AMRO, Rabobank and
BNP Paribas are physical bookrunners on the
lNANCING
The combined company will have annual
revenues of around €1.25bn.GERFLOR DETAILS TLBPricing has emerged on an €850m senior
secured term loan B backing investment
lRMû#OBEPASûACQUISITIONûOFû&RENCHûmOORINGû
ANDûINTERIORûlNISHûCOMPANYûGERFLOR.
The seven-year TLB is guided to pay
350bp-375bp over Euribor and it is offered
at 99.5 OID.
There is also a €125m 6.5-year revolving
credit facility.
Moody’s assigned a B2 rating to the loan.
Cobepa agreed to buy a majority stake in
'ERmORûINû*ANUARYû!FTERûTHEûTRANSACTION ûITû
WILLûCONTROLûTHEûlRMûALONGSIDEûPREVIOUSû
majority shareholder Intermediate Capital
'ROUPûANDû'ERmORûMANAGEMENTû)#'û
BOUGHTû'ERmORûINûûFROMû!8!û0RIVATEû
Equity.
The sale, subject to regulatory approval, is
expected to close this month.
Moody’s said adjusted opening leverage
was 6.5 times in December 2019 pro forma
for the transaction and the full-year effect of
acquisitions, but before any future synergies
and expected cost savings. The ratings
agency expects leverage to decline to below
6 times in the next 18 months.INOVYN SEALS REFI, ADD-ONChemicals and plastics company INOVYN has
allocated a €1.064bn term loan that will
RElNANCEûDEBTûANDûFUNDûEXPENDITUREûATû
parent level.
The term loan B, which includes a €250m
fungible add-on, priced in line with
guidance at 200bp over Euribor with a 0.5%
mOORû4HEûLOANûWASûISSUEDûATûANû/)$ûû
having been guided at 99.75-par.The transaction includes 101 soft call for
six months.
4HEû4,"ûWILLûRElNANCEûITSûõMû4,"ûTHATû
it repriced in November 2018 at 200bp over
Euribor.
Apart from raising additional debt, the
lRMûISûEXTENDINGûTHEûMATURITYûOFûTHEûLOANûTOû
February 2027 from November 2025. It also
sought covenant amendments on the TLB.
Ratings are Ba3/BB-.
Bank of America and JP Morgan were global
coordinators and physical bookrunners. JP
Morgan is admin agent.
Inovyn is owned by chemicals group
Ineos.ATNAHS WRAPS ADD-ON5+
HEADQUARTEREDûPHARMACEUTICALûlRMû
ATNAHS has issued its €260m acquisition
add-on at par, after being guided at a
99 OID.The covenant-lite loan priced at 500bp
over Euribor, in line with guidance, with a
ûmOOR
Proceeds will fund the acquisition of a
cardiovascular medicine portfolio from
AstraZeneca and a single product from a
large pharma company.
Corporate and issue ratings are B2/B-/B+
with stable outlook.
Barclays, Credit Suisse and HSBC are physical
bookrunners, alongside KKR Capital Markets,
Investec, MUFG and NatWest Markets.
The loan, due August 2026, is fungible to a
€354m term loan that was raised in
September at 500bp over Euribor to back
!TNAHSûACQUISITIONûBYûPRIVATEûEQUITYûlRMû
Triton.
Triton agreed to acquire a majority stake
in Atnahs in June.STONEGATE INCREASES BRIDGETDR Capital’s UK pubs group STONEGATE PUB
has increased the senior bridge loan put in
PLACEûINû*ULYûûTOûHELPûlNANCEûTHEû
acquisition of the UK’s largest pub owner EI
Group by £100m to £1.45bn.
Stonegate is backing the acquisition of EI
with £2.5bn of loans comprising the senior
bridge loan; a £450m senior term loan, a
£200m senior revolving credit facility, and a
£400m second lien facility.
Initial mandated lead arrangers and
BOOKRUNNERSûONûTHEûWIDERûlNANCINGûAREû
Barclays, Goldman Sachs and Nomura, which
were subsequently joined by Deutsche Bank,
Lloyds Bank and Rabobank.
In addition to the senior and second-lien
lNANCING ûTHEREûISûAûaMû
YEARû0)+û
facility, which is being provided by AlbaCore
Partners.EUROPEAN LEVERAGED LOANS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Excluding project finance. Western Europe only included.Source: Refinitiv SDC code: P101 JP Morgan 6 1,685.55 14.6
2 Deutsche Bank 6 1,092.62 9.5
3 Goldman Sachs 4 723.02 6.3
4 ING 3 722.40 6.3
5 Santander 4 646.28 5.6
6 Barclays 4 640.42 5.5
7 Citigroup 3 536.11 4.6
8 BofA 3 518.23 4.5
9 SG 2 493.91 4.3
10 UBS 2 481.22 4.2
Total 13 11,553.59EMEA SPONSORED LOAN BOOKRUNNERS
BY VOLUME: 1/1/2020 TO DATE
Europe, Middle East, Africa
Managing No of Total Share
bank or group issues US$(m) (%)Excluding project finance.
Source: Refinitiv SDC code: P131 JP Morgan 3 839.01 11.6
2 ING 2 622.40 8.6
3 Barclays 3 548.03 7.6
4 Deutsche Bank 3 536.11 7.4
5 Citigroup 3 536.11 7.4
6 UBS 2 481.22 6.7
7 Goldman Sachs 3 338.32 4.7
8 HSBC 3 338.32 4.7
9 Credit Suisse 2 283.42 3.9
10 BofA 2 283.42 3.9
Total 5 7,218.40Banks struggle to shift Iliad loans
EUROPE Loans totalling €1.8bn should have closed two weeks agoBanks are struggling to shift €1.8bn of loans for
French telecom and fibre network operator ILIAD.
The loans were launched to back founder and
majority shareholder Xavier Niel’s share buyback,
in which he increased his stake in the company to
just over 72%.
The loans are being raised at a holding company
level, so as not to affect leverage at Iliad’s operating
company, where leverage is at around 2.0 times.
BNP Paribas, Credit Agricole, Natixis and
Societe Generale are leading the corporate
leveraged financing, which should have closed
for syndication around two weeks ago.
“The financing is trundling along slowly in the
background like a slow train to nowhere. It will
get there in the end,” a senior banker said.The banks have since gone out to a wider
group of lenders to try and shift the excess paper.
The covenanted-holdco financing is split
between a €1.5bn term loan A paying 300bp
over Euribor and a €300m term loan B, guided
to pay 375bp over Euribor.
“For most CLO investors the loans are not
secured and unrated, which makes them very
hard to buy,” a second senior banker said.
A senior investor added: “If it is unrated it just
doesn’t work at all and there won’t be a CLO
solution for that deal. They need to find a private
credit shop with a lot of fire power to take the
whole thing at whatever price.”
Claire Ruckin
Additional reporting by Alasdair Reilly9 IFR Loans 2322 p 55 - 72 .indd 69 28 / 02 / 2020 18 : 11 : 32