IFR Magazine – January 20, 2018

LOANS LATIN AMERICA

7YNDHAMûSAIDûITûWOULDûlNANCEûTHEû
acquisition with debt including bridge
loans, term loans, senior unsecured notes,
or any combination of those borrowings,
along with cash on hand.
Wyndham Hotel Group, known for its
own-brand hotels as well as Ramada, Days
Inn and Super 8 budget lodgings, will have
21 brands after the La Quinta deal closes in
the second quarter of 2018, Reuters
reported.
La Quinta shareholders will receive
US$8.40 per share in cash and Wyndham
WILLûREPAYûABOUTûMûOFû,Aû1UINTAûDEBTû
net of cash.
Ahead of the sale, La Quinta will also spin
off its real estate assets into a publicly-traded
real estate investment trust, CorePoint
Lodging Inc.
La Quinta said it will receive a
US$983.95m cash payment from
CorePoint. JP Morgan is providing
53BNûINûSECUREDûDEBTûlNANCINGû
TOû#ORE0OINTûFORûTHEûRElNANCINGûOFû
substantially all of La Quinta’s existing
debt in connection with the separation
and the cash payment.
Separately, banks are preparing debt
packages of up to US$825m to back a
potential sale of the European rental assets
of Wyndham (see European leveraged
LOANS 

GE GETS US$13bn RCFS

GENERAL ELECTRIC has agreed three separate
revolving credit facilities for a total of up to
US$13bn, all maturing in January 2020.
There is one US$5bn facility and two
US$4bn revolvers.
There are no borrowings under the
facilities at this time.
The loans are with three separate banks,
though the lenders’ identity was not
released.
General Electric said it would record an
after-tax charge of US$6.2bn for the
FOURTHûQUARTERûRELATEDûTOûITSûlNANCEûARMSû
run-off insurance portfolio. Reuters reported
that GE, which has been reviewing its
insurance reserves, said its GE Capital unit
expects to make statutory reserve
contributions of about US$15bn over seven
years.
GE also said that GE Capital plans to
MAKEûAûlRSTûCONTRIBUTIONûOFûABOUTû
53BNûINûTHEûlRSTûQUARTER ûANDûEXPECTSû
to make further contributions of about
US$2bn per year in each of the six
following years.
GE Capital plans to fund the contributions
with excess liquidity and other portfolio
actions, and does not expect to make a
common share dividend distribution to GE
in the foreseeable future.

USA COMPRESSION NETS BRIDGE

Natural gas compression services provider

USA COMPRESSION PARTNERS has lined up a

53MûBRIDGEûLOANûFROMûJP Morgan and

Barclays TOûBACKûITSûROUGHLYû53BNû

acquisition of Energy Transfer Partners’

compression business.

USAC is purchasing CDM Resource

Management and CDM Environmental &

Technical Services from ETP for US$1.225bn

in cash, about 19.2m USAC common units

and about 6.4m USAC Class B units totaling

US$446m.

Financing for the cash portion will also be

provided through a US$500m offering of

perpetual preferred units in USAC to EIG

Global Energy Partners. The preferred units

WILLûPAYûAûûDIVIDENDûANDûCANûBEû

redeemed after 10 years.

The bridge loan is expected to be replaced

with unsecured notes.

As part of the transaction, ETP’s general

partner, Energy Transfer Equity, will acquire

all of the equity interests in USAC’s general

partner, USA Compression Partners GP, and

approximately 12.5m USAC common units

from USA Compression Holdings for

US$250m. USA Compression Holdings will

retain approximately 12.5m USAC common

units.

Additionally, USAC GP will cancel its

incentive distribution rights in USAC and

convert its general partner interest in USAC

into a non-economic general partner

interest in exchange for 8m USAC common

units.

ESSEX PORTFOLIO AMENDS RCF

ESSEX PORTFOLIO has amended and extended a

revolving credit agreement, increasing the

size to US$1.2bn from US$1bn.

The loan, which includes an accordion

feature allowing for the company to expand

the revolver to US$1.5bn, replaces the

facility dated September 16 2011.

PNC, US Bank and MUFG AREûJOINTûLEADû

ARRANGERSûANDûJOINTûBOOKRUNNERS

Essex Portfolio is the operating

partnership of Essex Property Trust, a real

estate investment trust.

0RICINGûWASûREDUCEDûTOûBPûOVERû,IBORû

from 90bp. The annual facility fee stayed at

15bp.

The maturity date is December 2021, with

an option to extend by 18 months.

For A-/A3 or higher, pricing is 82.5bp with

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155bp and 30bp.

Essex Portfolio is rated BBB+ by S&P and

Baa1 by Moody’s.

HYATT DETAILS US$1.5bn RCF

HYATT HOTELS CORP has wrapped up a US$1.5bn

lVE

YEARûUNSECUREDûREVOLVERûTHATûWILLûRElNANCEû

existing debt and provide funds for general

corporate purposes, including acquisitions.

Wells Fargo, Bank of America Merrill Lynch,

Deutsche Bank, JP Morgan and Bank of Nova

Scotia AREûJOINTûBOOKRUNNERSûANDûCO

LEADû

arrangers.

4HEYûWEREûJOINEDûBYûGoldman Sachs,

SunTrust, US Bank, Credit Agricole, HSBC, PNC,

Sumitomo Mitsui, Compass Bank, Fifth Third,

Santander, Northern Trust, Comerica Bank and

First Hawaiian.

Hyatt is amending and restating a credit

agreement dated January 2014, extending

the facility’s maturity to January 10 2023.

The loan includes US$200m letters of

credit, and a US$250m foreign currency

sublimit. A swingline sublimit of US$50m is

also available.

All-in pricing opens at 120bp over Libor

for a rating of BBB/Baa2. For A-/A3 or higher

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Hyatt is rated BBB by S&P and Baa2 by

Moody’s.

During any period when the consolidated

ADJUSTEDûFUNDEDûDEBTûTOûCONSOLIDATEDû%BITDAû

ratio exceeds 4.5 times, the applicable

margin will be 25bp plus the applicable

margin based on the debt rating.

LATIN AMERICA

PANAMA

PRICING EMERGES ON GLOBAL BANK

Pricing details have emerged on GLOBAL BANK

CORP’s US$135.5m three-year senior

unsecured term loan.

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"ANKSûJOININGûASû-,!SûWITHûTICKETSûOFû

US$21m or above earn an upfront fee of

BPûWHILEûLEADûARRANGERSûCOMMITTINGû

US$16m–$20m receive a 60bp fee. Arrangers

committing US$5m–$15m obtain a 50bp fee.

Citigroup, JP Morgan and Mizuho Bank are

THEûJOINTûLEADûARRANGERSûANDûBOOKRUNNERSûOFû

THEûFACILITYûWHICHûWILLûRElNANCEûDEBT

The borrower last raised a US$135.5m dual-

tranche incremental facility in May 2016.

Bladex, Citigroup and Mizuho were the MLABs

of that deal, which was split into a two-year

tranche that offered 190bp over Libor and a

three-year tranche offering 215bp over Libor.

Global Bank is rated BBB– by S&P and

Fitch.