78 International Financing Review September 8 2018GETTY IMAGES TO REFINANCE DEBTPhoto agency GETTY IMAGES is in the process of
refinancing its debt in conjunction with the
Getty family’s purchase of a majority share
of the company from private equity owner
The Carlyle Group.
The acquisition was announced on
Tuesday and involved the repurchase of all
of Carlyle’s equity interests. The family will
provide Carlyle with cash and units that will
give the private equity firm a financial stake
in the company for the future, according to
a statement.
Getty Images said that it plans to
refinance its existing credit agreement,
which includes a US$1.8bn term loan due in
October 2019 and a revolving credit facility.
The company may tap the loan market, as
well as issue senior notes and preferred
equity as part of the refinancing.
The transaction is expected to take two to
three months. JP Morgan is the
administrative agent on the credit
agreement.
The term loan was quoted at 98-99 on
Tuesday following the news, up from the
97.5-98 context on August 31.
The bid had dropped as low as 60 in
December 2015. At that time, the company
completed a distressed debt exchange
involving senior secured notes, according to
Moody’s, which rated the notes B3 and
affirmed the company’s corporate rating of
Caa1.
Most recently, Moody’s assigned a B3
rating to the issuer’s US$54.56m revolving
credit facility in November 2017 when Getty
extended the maturity to July 2019 from
October 2017. Moody’s said first-lien
leverage at that time was 7.5 times.
The company touted a partnership with
Google, editorial growth and other cost
savings at a leveraged finance conference in
February as ways to drop leveraged to 6
times from 9 times.Getty’s term loan has been trading above
90 since December.VIRTU TO LAUNCH US$400m TLBElectronic market-maker VIRTU FINANCIAL has
set a lender call for Monday for a US$400m
Term Loan B to refinance existing debt.
Pricing is being guided in the 275bp–
300bp range with a 1% Libor floor at par. The
loan will mature in December 2021. Six
months of soft call protection at 101 is
included.
JP Morgan leads the financing.
Ratings are Ba3/B+ for corporate and Ba2/
B+ for the facility.
TRAVERSE MIDSTREAM PARTNERS has launched
a US$150m incremental first-lien term loan.
The company, the equity owner of
Rover Pipeline and Ohio River System
midstream, is seeking the fungible loan,
an add-on to an existing US$1.285bn term
loan that matures in September 2024, the
source said. The loan will fund the
remaining capital commitments to the
Rover Pipeline.
It is offering to pay lenders 400bp over
Libor with a 1% floor. The add-on is being
offered at a discount of 99.5. Soft call
protection of 101 will be refreshed for six
months. There is a 25bp amendment fee for
existing consenting lenders.
JP Morgan is leading the deal.
The existing corporate and facility ratings
are B1/B+.
NAVICURE, a healthcare technology
company backed by Bain Capital, has set
pricing on a US$108m incremental term
loan to finance an acquisition.
Pricing on the term loan is set at 375bp over
Libor with a 1% floor and a discount of 99.5.
The incremental term loan will mature
on November 1 2024, and it will be fungible
with the existing US$433m tranche.
Antares Capital is leading the deal.
Navicure acquired healthcare technology
company Zirmed in November 2017. The
company lined up a merger credit facility
that includes US$435m seven-year first-lien
term loan, a US$185m eight-year second-lien
term loan and a US$50m five-year revolving
credit facility. The first lien loan pays 375bp
over Libor with a 1% floor.
The merged company is called Waystar.EUROPE/MIDDLE EAST/
AFRICAAKZO NOBEL MARKETS FINANCINGAKZO NOBEL set price talk on financing to back
the acquisition of its chemicals business by
Carlyle Group and Singaporean wealth fund
GIC.The company is offering to pay lenders
400bp-425bp over Libor with a 0% floor for a
US$3.9bn (€3.3bn equivalent) seven-year
term loan. The €1.79bn seven-year tranche is
guided at 425bp over Euribor with a 0% floor.
Both loans are guided with a discount of
99-99.5 and have six months of 101 soft call
protection.
Barclays, HSBC and JP Morgan are joint
global coordinators and JP Morgan, the
administrative agent, is also the sole
physical coordinator on the dollar tranche.
Credit Suisse, Deutsche Bank, Morgan Stanley,
RBC, Citi, Nomura, UBS, BNP Paribas, Credit
Agricole CIB, Mizuho, MUFG, RBS, SG CIB and
Bank of China are bookrunners, while
mandated lead arrangers are ABN AMRO,
Commerzbank, Rabobank, SEB, Bank of Ireland,
Standard Chartered, ING and AIB.
A bank meeting took place in New York
on Thursday and a London meeting will take
place on Monday. Commitments are due by
September 20.
Expected corporate ratings are B2/B+/B+,
while secured ratings are B1/B+/BB-.
In March Akzo Nobel announced it was
selling the specialty chemicals business for a
value of €10.1bn, according to a news
release. The company said it expects the
transaction to be completed by the end of
the year.SUSE SHOPS US$675m BUYOUT LOANEnterprise software business SUSE LINUX has
launched a US$675m-equivalent loan
package backing EQT’s carve-out of the unit
from Micro Focus.
The seven-year deal comprises a US$325m
term loan B first-lien term loan and a
US$350m-equivalent euro-denominated
first-lien term loan.
The dollar tranche is guided at 400bp over
Libor, while the euro tranche is at 425bp
over Euribor.
Both have a 0% floor, a 99.5 OID and six
months soft call protection at 101.
A bank meeting is scheduled for Tuesday in
London and the following day in New York.
JP Morgan is sole physical bookrunner on
the deal, with Deutsche Bank, Goldman Sachs
and Jefferies as bookrunners.
Britain’s Micro Focus agreed to sell SUSE
to EQT in July for US$2.535bn.
Micro Focus, a serial acquirer that has
been struggling to get to grips with a
US$8.8bn Hewlett Packard Enterprise deal,
said it would use some of the proceeds to
reduce debt and could return some of the
rest to shareholders.
SUSE is used by banks, universities and
government agencies around the world and
is a pioneer in enterprise-grade Linux
software serving companies such as Air
India, Daimler and Total.EUROPEAN LEVERAGED LOANS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BNP Paribas 48 9,905.62 8. 2
2 Deutsche Bank 36 8,201.81 6.8
3 Credit Agricole 42 8,180.79 6.8
4 HSBC 33 6,739.97 5.6
5 SG 32 6,124.75 5. 1
6 Goldman Sachs 27 5,999.11 5. 0
7 Barclays 26 5,559.64 4 .6
8 Citigroup 20 5,383.6 4 4 .5
9 JP Morgan 23 5,317.99 4 .4
10 Credit Suisse 19 5,106.21 4 .2
Total 150 12 0,353.57
Excluding project finance. Western Europe only included.Source: Thomson Reuters SDC code: P109 Loans 2250 p67-80.indd 78 07/09/2018 18:55:12