IFR Magazine – January 20, 2018

LOANS LEVERAGED LOANS

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ûlRST
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and Caa2/CCC second-lien.
Livingston is owned by Sterling Partners
and CPP Investment Board.
Technology company XPERI CORP, formerly
known as Tessera Holding, has wrapped up
the repricing of its US$596m term loan due
in December 2023.
Royal Bank of Canada led the deal, which
will be reduced to US$494m following a
planned prepayment of roughly US$100m.
The loan cleared at 250bp over Libor with
AûûmOOR ûATûPAR ûINûLINEûWITHûGUIDANCE
Lenders received a six-month, 101 soft call
refresher.
Xperi arranged the loan, originally sized
at US$600m, in 2016 to back its acquisition
of DTS. The debt priced at 300bp over Libor.
Ratings are Ba3/BB- corporate and facility.

EUROPE/MIDDLE EAST/
AFRICA

EG LAUNCHES €3.5bn LOAN

UK petrol station operator EG GROUP has
LAUNCHEDûAûJUMBOûõBN
EQUIVALENTû
leveraged loan to back acquisitions and
RElNANCEûEXISTINGûDEBT
!ûõMû4," ûOFûWHICHûõMûWILLûBEû
delayed draw, is guided to pay 400bp-425bp
over Euribor. A US$500m TLB, of which
US$185m is delayed draw, is guided to pay
425bp-450bp over Libor, while a £400m TLB
ISûGUIDEDûTOûPAYûBP
BPûOVERû,IBOR
All three term loans have a seven-year
MATURITYûANDûAREûOFFEREDûWITHûAûûmOOR û
99.5 OID and 101 soft-call for six months.
Ticking fees on the term loans, including the
delayed draws, are 0% of the margins for the
lRSTûûDAYS ûûOFûTHEûMARGINSûBETWEENûû
and 60 days and 100% of the margins thereafter.
4HEûlNANCINGûALSOûCOMPRISESûAûaMû

YEARûMULTI
CURRENCYûREVOLVINGûCREDITû
facility guided to pay 300bp over Euribor/
,IBOR ûANDûAûõMû
YEARûLETTERûOFûCREDITû
guided to pay 200bp over Euribor.
Bank of America Merrill Lynch, Barclays and
Goldman Sachs AREûLEADINGûTHEûJUMBOû
lNANCINGûALONGSIDEûCredit Suisse, Deutsche
Bank, ING, Lloyds, Rabobank, RBC and UBS.
Corporate family and TLB ratings are
expected to be B2/B/B, with a recovery rating
of 3.
The loan will back the acquisition of 1,165
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'ERMANYûASûWELLûASûRElNANCINGû%'û'ROUPSû
outstanding debt facilities that include
£620m and €914m of term loans.
TDR Capital-owned EG Group, formerly
known as Euro Garages, acquired UK
roadside restaurant Little Chef in February,
INCLUDINGûûROADSIDEûSITES ûFROMûTHEû+OUTû
Food Group.

It was last in the loan market in April

ûWHENûITûREPRICEDûITSûaMûANDûõMû

term loans, at 500bp over Libor and 400bp

over Euribor, respectively. Both loans were

OFFEREDûWITHûAûûmOORûANDûANû/)$ûOFû

Prior to that, the company tapped the

loan market in October 2016 for an

õM

EQUIVALENTûLOANûBACKINGûITSûMERGERû

with European Forecourt Retail.

TDR acquired a £1.3bn minority stake in

Euro Garages in January 2016, backed by a

aMûlNANCINGûSPLITûBETWEENûAûaMû

seven-year TLB and a £250m-equivalent

euro-denominated TLB.

ZENTIVA FINANCING PREPPED

Bankers have put together around €1.2bn of

DEBTûlNANCINGûTOûBACKûAûPOTENTIALûSALEûOFû

French drug maker SANOFI’s European

generic drug business as the sale process

kicks off.

Rothschild, JP Morgan and Morgan

Stanley are advising on the sale of the unit,

known as ZENTIVA, which could be worth

more than €2bn.

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ATTENTIONûFROMûPRIVATEûEQUITYûlRMSûANDû

INDUSTRYûPEERSûANDûlRST

ROUNDûBIDSûAREûDUEû

in an auction process on January 23.

JP Morgan and Morgan Stanley are providing

AûSTAPLEûlNANCINGûTOûPOTENTIALûBUYERSû

EQUATINGûTOûAROUNDûûTIMESû:ENTIVASû

approximate €155m Ebitda.

The staple includes senior leveraged loans

and subordinated debt that could be in the

form of high yield bonds or second-lien

loans. There will also be undrawn facilities.

Other banks are also working on debt

lNANCINGSûTOûOFFERûTOûPOTENTIALûBIDDERSûASû

THEûASSETûISûQUITEûATTRACTIVEûFROMûAûlNANCINGû

perspective.

“At seven times, there is not much more

punchy a staple can get,” a senior banker said.

3TAPLEûlNANCINGSûCANûBEûATTRACTIVEûTOû

potential buyers, reassured by a certainty of

debt funding.

3ANOlûSTARTEDûTOûDISENTANGLEûTHEû

European generics business from its global

operations toward the end of 2016, after

announcing its plans to sell the unit. It said

last year it was expecting to complete the

sale by the end of 2018.

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arm.

ALTRAN DETAILS LOAN

French technology consultancy ALTRAN has

released price guidance on the €2.125bn-

equivalent term loan B backing its

acquisition of US digital design and

ENGINEERINGûSERVICESûlRMûARICENT.

The loan will comprise a dollar tranche of

at least US$300m, and the rest will be in

euros.

The euro and dollar tranches have

respective initial margins of 300bp and

BPûASSUMINGûõMûOFûEQUITYûFORûTHEû

deal, putting net leverage at 3.0-3.5 times

Ebitda.

The margin ratchet on the tranches falls

TOûBPûANDûBPûRESPECTIVELYûIFûNETû

LEVERAGEûDROPSûBELOWûûTIMESûITûRISESûTOû

325p and 300bp for 3.5-4.0 times, topping

out at 350bp and 325bp respectively for over

4.0 times.

Both tranches are offered at 99.5 with a

ûmOORûANDûHAVEûSIXûMONTHSûOFûSOFTûCALLû

protection at 101.

Altran’s pro forma net leverage will

INCREASEûTOûûTIMESûITSûADJUSTEDû%BITDAûOFû

õMûFORûTHEûYEARûTOû3EPTEMBERûûû)Tû

plans to delever to 2.5 times within two

years of closing the deal as expected this

quarter.

The seven-year senior secured term loan,

alongside a €250m bridge facility, will pay

THEûõBNûPRICEûTAGûFORû!RICENTûANDû

RElNANCEûEXISTINGûDEBT

Leads had started marketing the bridge

facility to Altran’s relationship banks

following the acquisition’s announcement

in December.

Credit Agricole CIB, Goldman Sachs and

Morgan Stanley underwrote the loan and will

ALSOûUNDERWRITEûAûõMûRIGHTSûISSUEûTOû

RElNANCEûPARTûOFûTHEûCOMMITTEDûlNANCING

A shareholder meeting to authorise the

rights issue is scheduled for January 26.

Altran’s acquisition of California-based

Aricent from a group of investors led by KKR

is the largest of a series of deals done by the

French business, and will create a group

with revenue of almost €3bn.

AMG SHOPS DOLLAR REFI

Dutch AMG ADVANCED METALLURGICAL GROUP is in

the market with a US$500m loan led by

HSBC with Citigroup.

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year revolving credit facility and a US$300m

SEVEN

YEARûlRST

LIENûTERMûLOAN

The term loan is guided in the 300bp-

BPûOVERû,IBORûRANGEûWITHûûmOORûANDûAû

99.5 OID.

Lenders are offered six months of soft-call

protection at 101.

0ROCEEDSûWILLûBEûUSEDûTOûRElNANCEûEXISTINGû

DEBTûlNANCEûGROWTHûINITIATIVESûANDûFORû

general corporate purposes.

AMG amended its existing credit facility

in July 2016, upsizing it to US$400m from

US$320m and extending the maturity to July

2021 from May 2018.

HSBC ran the amendment with Lloyds,

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