IFR Magazine - October 27, 2018

UNITED STATES

ADOBE DETAILS FACILITIES

ADOBE SYSTEMSûANNOUNCEDû53BNûINû
CREDITûFACILITIESûINCLUDINGûlNANCINGûTOû
support its purchase of marketing software
COMPANYû-ARKETO
!DOBEûAGREEDûAû53BNûlVE
YEARûSENIORû
unsecured revolving credit that replaces an
EXISTINGûFACILITYûANDûAû53BNû
MONTHû
senior unsecured term loan that will be used
TOWARDSûTHEû-ARKETOûACQUISITION
The revolving credit can be increased by
53MûANDûWILLûMATUREûONû/CTOBERûû
û)TûREPLACESûAûFACILITYûDATEDû-ARCHûû

The term loan is available for funding
UNDERûAûSINGLEûDRAW
Bank of America Merrill Lynch is
ADMINISTRATIVEûAGENTû"!-,ûJP Morgan, Wells
Fargo, US Bank and Societe Generale are joint
lead arrangers and joint bookrunners for
THEûREVOLVINGûCREDITû&ORûTHEûTERMûLOANû
"!-,ûANDû7ELLSû&ARGOûAREûJOINTûLEADû
ARRANGERSûANDûJOINTûBOOKRUNNERS
0RICINGûONûTHEû2#&ûISûLINKEDûTOûRATINGSû&ORû
!!
!AûTHEûMARGINûISûBPûOVERû,IBORûANDû
THEûFACILITYûFEEûISûBPûFORû!!ûITûISûBPû
ANDûBPûFORû!!ûITûISûBPûANDûBPûFORû!

A3 it is 91bp and 9bp; and for BBB+/Baa1 it is
BPûANDûBP
Adobe is rated A by S&P and A3 by
-OODYS
Pricing on the term loan is also linked to
RATINGSû&ORû!!
!AûTHEûMARGINûISûBPûOVERû
Libor and the commitment fee is 4bp; for
!!ûITûISûBPûANDûBPûFORû!!ûITûISû
BPûANDûBPûFORû!
!ûITûISûBPûANDûBPû
ANDûFORû""""AAûITûISûBPûANDûBP
In September, Adobe agreed to buy
-ARKETOûFORû53BNûFROMûPRIVATEûEQUITYû
lRMû6ISTAû%QUITYû0ARTNERSû-ANAGEMENT

REALTY INCOME SEALS US$3.25bn DEAL

Real estate investment trust REALTY INCOME
HASûCLOSEDûANûAMENDEDû53BNû
UNSECUREDûlVE
YEARûCREDITûFACILITYûREDUCINGû
REVOLVERûPRICING
The facility, which can be increased to
US$4bn, consists of a US$3bn revolving
credit that replaces a US$2bn revolver, as
well as a new US$250m term loan due
-ARCHû
An outstanding US$250m term loan due
June 2020 will remain under the new credit
AGREEMENT
The new facility matures in March 2023, and
INCLUDESûTWOûSIX
MONTHûEXTENSIONûOPTIONS
!TûCURRENTûRATINGSûOFû!
ûBYû30ûANDû!ûBYû
Moody’s, the revolving credit is priced at
BPûOVERû,IBORûWITHûAûBPû
COMMITMENTûFEEûFORûANûALL
INûDRAWNûPRICINGû

OFûBPûOVERû,IBORû4HATûCOMPARESûWITHûANû

ALL

INûDRAWNûOFûBPûPREVIOUSLY

The new term loan is priced at 85bp over

,IBORû4HEûCOMPANYûSAIDûITûAGREEDûANûINTERESTû

RATEûSWAPûTHATûlXESûTHEûANNUALûINTERESTûRATEû

ATû

Wells Fargo ISûADMINISTRATIVEûAGENTû4HEREû

AREûûBANKSûINûTHEûSYNDICATEû7ELLSû&ARGOû

Bank of America Merrill Lynch, RBC, JP Morgan

and Regions Bank are joint lead arrangers for

THEûREVOLVINGûCREDIT

&ORûTHEûTERMûLOANû7ELLSû&ARGOû2EGIONSû

US Bank, BNY Mellon, BB&T and PNC are joint

LEADûARRANGERS

Realty Income’s monthly dividends are

SUPPORTEDûBYûCASHmOWûFROMûOVERûûREALû

ESTATEûPROPERTIESûOWNEDûUNDERûLONG

TERMû

lease agreements with regional and national

COMMERCIALûTENANTS

DIGITAL REALTY REFINANCES

DIGITAL REALTYûHASûRElNANCEDû53BNûINû

global credit facilities, including a

53BNûREVOLVINGûCREDITûANDûABOUTû

53MûOFûMULTI

CURRENCYûTERMûLOANS

The loans support acquisitions,

development, debt repayment, working

CAPITALûANDûGENERALûCORPORATEûPURPOSES

Digital Realty provides data centre,

COLOCATIONûANDûINTERCONNECTIONûSERVICES

4HEûRElNANCINGûREDUCEDûTHEûREVOLVINGû

credit pricing by 10bp, extended the

maturity date by three years and increased

THEûTOTALûAVAILABLEûFUNDSûBYû53M

4HEû53BNûREVOLVERûISûDUEûINû*ANUARYû

ûANDûHASûTWOûSIX

MONTHûEXTENSIONû

OPTIONSû0RICINGûBASEDûONûAû"""ûRATINGûBYû

S&P and Baa2 by Moody’s, was lowered to

90bp over Libor from 100bp over Libor

PREVIOUSLYû4HEREûISûAûBPûFACILITYûFEE

4HEû53MûMULTI

CURRENCYûTERMûLOANû

comprises of US$512m that matures in

*ANUARYûûWITHûTWOûSIX

MONTHûEXTENSIONû

options, US$300m due in January 2023, and

53MûMATURINGûINû-ARCHû

Pricing for the US$512m and the

US$104m portions was cut to 100bp over

,IBORûFROMûBPûOVERû,IBOR

The maturity of the US$300m piece was

REDUCEDûTOûlVEûYEARSûFROMûSEVENûYEARSûWITHû

pricing revised to 100bp over Libor from

BPûOVERû,IBORûPREVIOUSLY

$IGITALû2EALTYûALSOûSAIDûITûCOMPLETEDûAûlVE

year US$300m equivalent Japanese

YEN

DENOMINATEDûREVOLVINGûCREDITûTOûFUNDû

capital requirements for its joint venture

with Mitsubishi Corp and for general

CORPORATEûPURPOSES

4HEûYEN

BASEDûREVOLVINGûCREDITûDUEûINû

January 2024, is priced at 50bp over the

BENCHMARKû4HEREûISûANûUNUSEDûFACILITYûFEEû

OFûBP

$IGITALû2EALTYûSAIDûITSûRElNANCINGûOFû

existing facilities was oversubscribed,

receiving more than US$6bn in

COMMITMENTSûFROMûûlNANCIALûINSTITUTIONS

Borrowings can be made in US, Canadian,

Singapore, Australian and Hong Kong dollars,

ASûWELLûASûEUROûPOUNDûSTERLINGûANDûYEN

Citigroup, JP Morgan, Bank of America Merrill

Lynch, Bank of Nova Scotia, Sumitomo Mitsui, TD

and US Bank were joint lead arrangers and

joint bookrunners for the global revolver

ANDûTERMûLOANûFACILITIES

Sumitomo, MUFG and Mizuho were joint

lead arrangers and joint bookrunners for the

YEN

BASEDûFACILITY

LEVERAGED LOANS

UNITED STATES

POWER SECTOR FEELS BENEFIT

4HEûRED

HOTûAPPETITEûINûTHEûLOANûMARKETûISû

making its way into the power sector,

highlighted by a drop in pricing for the

lNANCINGûBACKINGû-ORGANû3TANLEYû

Infrastructure Partners’ acquisition of the

BAYONNE ENERGY CENTERûINû.EWû*ERSEY

2EVERSEûmEXESûINûTHEûPOWERûlNANCEûSECTORû

are extremely unusual as lending takes

LONGERûANDûLOANSûAREûUSUALLYûCLUBBED

0RICINGûONû"AYONNESû53MûSEVEN

YEARû

term loan, plus US$50m of ancillary

facilities, was cut to 250bp over Libor from

INITIALûPRICEûTALKûOFûBPûAFTERûAûTHREE

TIMESû

OVERSUBSCRIPTION

Credit Agricole, Investec, Industrial and

Commercial Bank of China, KERB Hana Bank and

Nomura are leading the deal that included

ROUGHLYûTWOûDOZENûPARTICIPANTS

NHIP II Bayonne Holdings, an entity

owned by Morgan Stanley Infrastructure

Partners’ North Haven Infrastructure

0ARTNERSû))ûFUNDûISûTHEûBORROWER

AMERICAS LOANS BOOKRUNNERS – FULLY

SYNDICATED VOLUME

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

1 BAML 997 301,603.26 12.2

2 JP Morgan 921 284,211.34 11.5

3 Wells Fargo 722 201,686.21 8.2

4 Citigroup 478 168,401.06 6.8

5 RBC 394 100,039.70 4.1

6 Barclays 357 95,161.20 3.9

7 Goldman Sachs 314 92,871.74 3.8

8 MUFG 254 80,307.39 3.3

9 Morgan Stanley 220 78,961.24 3.2

10 Deutsche Bank 279 68,311.67 2.8

Total 3,798 2,464,346.87

Proportional credit

Source: Refinitiv SDC code: R7