International Financing Review March 21 2020 71LOANS RESTRUCTURINGHerbalife increased its term loan A by
US$30.5m to US$264.8m and upped the
revolving credit line by US$32.5m to
US$282.5m.
The company also amended the price it
will pay on both facilities to 250bp over
Libor from 300bp.
The commitment fee applicable to the
undrawn portion of the revolving credit
facility has reduced to 35bp from 50bp.
Both tranches of debt will mature in
March 2025.
Herbalife raised the term loan A and
revolving credit line alongside a US$750m
term loan B in August 2018.
Jefferies and Rabobank arranged the
transaction.EUROPE/MIDDLE EAST/
AFRICALOANS AT 2009 LEVELSAverage bids on Europe’s top 40 leveraged
loans have plummeted almost 14 points
since March 9 to lows not seen since 2009,
as the affects of coronavirus continue to
take their toll.
Europe’s top 40 leveraged loan
composite was quoted at 80.13% of face
value on March 18, from 94 on March 9.
The last time the composite was on July
16 2009 at a low of 79.97, according to
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“Its carnage out there,” an investor said.
The drop in pricing fuelled more funds
to exit positions following a number of
sales two weeks ago and two more
portfolios hit the secondary market last
week via Bids Wanted In Competition
auction processes.
The two latest BWICs are valued at
€50m and €115m, and bids on both were
due by March 19.
The smaller of the two had an average
bid of 85.1% of face value, according to
2ElNITIVû,0#ûDATA ûANDûCOMPRISEDûû
names denominated in euros. Ticket sizes
were small at €3m, €2m and €1m.
The larger BWIC comprised loans and
bonds.BOELS PULLS €1.61bn LOAN$UTCHûEQUIPMENTûRENTALûlRMûBOELS has
postponed a €1.61bn acquisition loan due
to adverse market conditions.
The seven-year term loan B, which was
supposed to be priced on March 10, had
been guided at 300bp–325bp over Euribor
WITHûAûûmOORûANDûAûû/)$
Proceeds were to be used to back the
lRMSûõMûACQUISITIONûOFû&INLANDSû
#RAMO ûASûWELLûASûRElNANCEûALLûOFû"OELSûand Cramo’s debt, and pay transaction
costs.
Credit Suisse, ING, ABN AMRO,
Rabobank and BNP Paribas were physical
bookrunners and underwriters on the
lNANCING
Boels is the second European borrower
TOûDELAYûANûEVENT
DRIVENûLOANûlNANCINGû
during syndication, after French
laboratory services group BIOGROUP LCD
called off a €274.7m acquisition loan
earlier this month.CINEWORLD DOWNGRADED AS IT GOES
DARKS&P has downgraded CINEWORLD to Single B
from BB– after Britain’s biggest cinema
operator said it was temporarily closing
its theatres amid a rapid spread of
coronavirus.
The cinemas closure in the group’s key
markets including UK and the US will result
in a sharp increase in its leverage in 2020,
rising above its previous guidance of 4.5–5
times for the BB– rating, and will deplete its
liquidity and covenant headroom, S&P said
in a report.
“It is hard to predict the length of these
closures, but we think cinema attendance
globally will remain minimal for the next
SEVERALûMONTHSûATûLEAST ûSIGNIlCANTLYû
reducing Cineworld’s revenues and
PROlTSûINû vû30ûSAID
The move followed Fitch Ratings,
which placed Cineworld’s long-term
issuer default rating of B+ and expected
senior secured debt rating BB– on rating
Watch Negative on Monday.
To contain the coronavirus spread,
other cinema operators have taken
similar actions. AMC Entertainment said
all of its theatres in the US would close for
at least six to 12 weeks beginning on
March 17, while Cineplex announced it
would shut its screens across Canada from
March 16 to April 2.
Cineworld warned this month that it
could fail to meet its debt commitments
in a worst-case coronavirus scenario, but
it plans to press ahead with its US$1.65bn
takeover of Cineplex.
Cineplex said on Monday the possibility
of prolonged closures could hurt its ability
to satisfy debt conditions required for the
merger.
The Cineplex deal, announced three
months ago, will make Cineworld the
biggest cinema operator in North
America. Cineworld currently operates
about 9,500 screens globally, with more
than 7,000 in the US, where it generates
three-quarters of its revenue.
The Cineplex acquisition is backed by a
US$1.9bn secured incremental term loanand a US$300m unsecured bridge loan.
4HEûBRIDGEûLOANûINCLUDESûlNANCIALû
covenant ratios set at the same level as
the secured bank loans, at 5.5 times of net
DEBTCONSOLIDATEDûADJUSTEDû%BITDAûUNTILû
December 2020, falling to 5.0 times from
30 June 2021 onwards, Fitch said.
4HEûlNANCINGûWASûlNALISEDûINû&EBRAURYRESTRUCTURING
UNITED STATES
PG&E GETS APPROVAL FOR DEBTUS utility PACIFIC GAS & ELECTRIC received court
approval on Monday to access US$10.8bn in
DEBTûlNANCINGûCOMMITMENTS ûASûPARTûOFûANû
APPROXIMATELYû53BNûlNANCINGûPACKAGEû
slated to help the company emerge from
bankruptcy protection.
4HEûlNANCINGûPACKAGEûALSOûINCLUDESû
53BNûINûEQUITYûlNANCING
The approval came after California
governor Gavin Newsom dropped his
OBJECTIONûTOûTHEûlNANCINGûDURINGûAû-ONDAYû
court hearing.
4HEûDEBTûlNANCINGûCOMPRISESûAû53BNû
364-day senior unsecured bridge term loan
facility issued from its PG&E Corp entity,
and a US$5.825bn 364-day senior secured
bridge term loan facility issued from its
Utility entity.
JP Morgan, Bank of America, Barclays, Citigroup
and Goldman Sachs are bookrunners. BNP
Paribas, Credit Suisse, Morgan Stanley, MUFG,
Wells Fargo and Mizuho are lead arrangers.
JP Morgan is the administrative agent for
the US$5bn loan, and the collateral agent for
the US$5.825bn loan. Both loans will be
investment-grade.
PG&E is pushing to exit bankruptcy
protection by June 30 to access a US$20bn
STATE
BACKEDûWILDlREûFUNDûDESIGNEDûTOûPROTECTû
LARGEûUTILITIESûFROMûWILDlREûCLAIMS
4HEûCOMPANYûlLEDûFORû#HAPTERûû
bankruptcy protection in January 2019 after
succumbing to liabilities stemming from
WILDlRESûINû.ORTHERNû#ALIFORNIAûINûûANDû- It received court approval for a
53BNûDEBTOR
IN
POSSESSIONûlNANCINGûINû
March 2019.
The company is advised by Lazard and
restructuring adviser Alix Partners.
Weil, Gotshal & Manges and Cravath,
Swaine & Moore are PG&E’s legal counsel.
INTERNAP GETS US$75m DIPInternet infrastructure company INTERNAP has
lLEDûFORû#HAPTERûûBANKRUPTCYûPROTECTIONû9 IFR Loans 2325 p 55 - XX.indd 71 20 / 03 / 2020 19 : 00 : 40