Both the facilities closed oversubscribed
after receiving nearly US$5bn of
commitments from the market. A group of
25 banks from 12 countries participated in
THEûlNANCING
BNP Paribas, Societe Generale, MUFG, ABN
AMRO, Citigroup, Rabobank, Natixis and Credit
Agricole CIB were joint lead arrangers and
joint bookrunners, while ING and Standard
Chartered Bank were senior managing agents
for the facilities.
".0û0ARIBASûWASûGLOBALûCOORDINATORûANDû
administrative agent on the borrowing base
facility, while Citigroup was administrative
agent for the revolving credit facility.
Castleton markets physical commodities
including electricity, natural gas, natural gas
LIQUIDS ûRElNEDûPRODUCTS ûCRUDEûOIL ûFUELûOIL û
freight, base metals, and petrochemicals.
SYNNEX TAPS FOR CONVERGYS BUYSYNNEX CORP has agreed a 364-day senior
secured term loan for up to US$3.57bn to
support the business process services
company’s purchase of call centre operator
Convergys.
The US$2.43bn cash-and-stock takeover is
EXPECTEDûTOûCLOSEûBYûTHEûENDûOFûTHISûYEAR
JP Morgan and Bank of America Merrill Lynch
are joint lead arrangers and joint
bookrunners.
)FûTHEûBRIDGEûlNANCINGûISûDRAWN ûPRICINGû
ranges from 125bp over Libor to 200bp,
depending on the company’s consolidated
leverage ratio. Pricing would be increased by
25bp for each 90 days that pass after the
closing of the bridge facility, up to a range of
200bp to 275bp.
Commitment fees on the undrawn
amount range from 15bp to 25bp.
4HEûlNANCINGûCOMPRISESûAû53Mû
tranche A1, a US$1.2bn tranche A2 and a
US$1.77bn tranche B.
For the A tranches, pricing, based on a
leverage grid, opens at 150bp over Libor
from the initial funding date through the
lRSTûûDAYSûBPûFORûDAYûûUNTILûDAYûû
200bp for day 180 until day 269 and 225bp
for day 270 and beyond.
For the B tranche, for the same elapsed
time periods, pricing opens at 175bp, then
rises to 200bp, 225bp and 250bp.
The commitment fee opens at 20bp.
There will be duration fees of 50bp on the
90th day after the initial funding date, 75bp
on the 180th day, and 100bp on the 270th
day.AVANGRID NETS SUSTAINABILITY-LINKED
LOANIberdrola’s US renewable energy and utility
company AVANGRID has signed a US$2.5bn
lVE
YEARûREVOLVINGûCREDITûFACILITYûWITHûAû
margin partially linked to the company’s
greenhouse gas emissions.
4HEûlNANCING ûWHICHûWILLûBEûUSEDûFORû
general corporate purposes including
working capital, replaces Avangrid’s
EXISTINGû53BNûREVOLVERûFROMû!PRILûû
that was due to mature in April 2021.
The loan, which has up to two one-year
EXTENSIONûOPTIONS ûPAYSûAûMARGINûLINKEDûTOûAû
ratings grid.
For A1/A+ the margin is 80bp over Libor
and the facility fee is 7.5bp; for A2/A it is
90bp and 10bp; for A3/A- it is 100bp and
12.5bp; for Baa1/BBB+ it is 107.5bp and
17.5bp; for Baa2/BBB it is 127.5bp and
22.5bp; for Baa3/BBB- it is 147.5bp and
27.5bp; and for lower than Baa3/BBB- it is
165bp and 35bp.
The margin is further adjusted by
reference to a baseline sustainability
AMOUNTûOFûGûOFûCARBONûDIOXIDEûPERû
kilowatt-hour as assessed by Vigeo Eiris, an
independent provider of environmental,
social and governance performance
research and ratings.
If annual greenhouse gas emissions are
less than or equal to 90% of the baselinesustainability amount then the applicable
margin decreases by 5bp.
If annual greenhouse gas emissions are
greater than or equal to 110% of the baseline
sustainability than the applicable margin
increases by 5bp.
JP Morgan, Bank of America Merrill Lynch,
MUFG, Santander and BBVA are joint lead
arrangers and joint bookrunners.
JP Morgan is administrative agent, MUFG
and Banco Santander are syndication agents,
while BBVA is sustainability agent.
BNP Paribas, Caixabank, CIBC, Citigroup,
Commerzbank, Credit Agricole CIB, Mizuho Bank,
Morgan Stanley, RBC, SMBC, TD Bank, Wells
Fargo Bank, Deutsche Bank, HSBC, People’s United
Bank and Bank of New York Mellon also
participated.
BBB+/Baa1 rated Avangrid has US$31bn in
assets and operate in 24 US states. The
company has two primary lines of business,
!VANGRIDû.ETWORKSûANDû!VANGRIDû
Renewables.LITHIA MOTORS WRAPS US$2.6bn DEALLITHIA MOTORSûHASûCLOSEDûAû53BNûlVE
YEARû
senior secured credit facility.
The facility, increased from US$2.4bn,
comprises a US$450m working capital
REVOLVER ûAû53MûmOORPLANûlNANCINGûFORû
USEDûVEHICLESûANDûAû53BNûmOORPLANû
funding for new vehicles.
The US$450m working capital revolver
was priced at 20bp undrawn and 150bp
drawn.
0RICINGûONûTHEû53MûUSEDûmOORPLANû
facility was 15bp undrawn and 150bp
DRAWN ûANDûTHEû53BNûNEWûmOORPLANû
facility was 15bp undrawn and 125bp
drawn.
US Bank is administrative agent and joint
bookrunner.
JP Morgan is a co-syndication agent and
joint bookrunner. Toyota Motor Credit Corp is a
co-syndication agent.
American Honda Finance, Mercedes-Benz
Financial Services, Bank of America Merrill Lynch
and TD Bank are co-documentation agents.
A total of 20 lenders committed to the
oversubscribed facility.
Lithia operates automotive franchises
throughout the US, marketing and selling
automotive products and services.POLARIS UPS LOAN TO US$1.88bnPower sports company POLARIS INDUSTRIES has
INCREASEDûANDûlNALISEDûAû53BNûSENIORû
UNSECUREDûlNANCINGûTOûBACKûITSûACQUISITIONû
of pontoon boat maker Boat Holdings.
The facility launched at US$1.78bn, and
replaces a US$600m revolver and US$680m
term loan. The term loan was initially issued
at US$750m.AMERICAS LOANS BOOKRUNNERS – FULLY
SYNDICATED VOLUME
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 671 208,046.15 12.6
2 JP Morgan 580 189,598.21 11.5
3 Wells Fargo 473 137,646.17 8.3
4 Citigroup 314 118,800.60 7.2
5 Barclays 260 69,738.38 4.2
6 Goldman Sachs 214 65,737.90 4.0
7 RBC 253 58,005.87 3.5
8 MUFG 164 56,959.45 3.5
9 Morgan Stanley 148 56,508.91 3.4
10 Deutsche Bank 201 49,416.02 3.0
Total 2,370 1,649,106.32
Proportional credit
Source: Thomson Reuters SDC code: R7US AND CANADA LOANS BOOKRUNNERS –
FULLY SYNDICATED VOLUME
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 671 208,046.15 12.9
2 JP Morgan 571 186,172.87 11.5
3 Wells Fargo 473 137,646.17 8.5
4 Citigroup 302 116,013.60 7.2
5 Barclays 260 69,738.38 4.3
6 Goldman Sachs 213 65,686.23 4.1
7 RBC 253 58,005.87 3.6
8 Morgan Stanley 148 56,508.91 3.5
9 MUFG 160 56,096.95 3.5
10 Deutsche Bank 201 49,416.02 3.1
Total 2,326 1,617,892.51
Proportional credit
Source: Thomson Reuters SDC code: R9