IFR Magazine - October 27, 2018

LEVERAGED LOANS

Morgan Stanley Infrastructure Partners
RECENTLYûAGREEDûTOûACQUIREûTHEû-7û
Bayonne plant from Macquarie
Infrastructure Corp for about US$900m in
CASHûANDûASSUMEDûDEBT
The Bayonne Energy Center is connected
to New York City through a cable that runs
FROMû"AYONNEû.*ûTOû"ROOKLYNû.9
Bayonne Energy Center was originally
built in 2008 as a joint venture between
Hess Corporation and ArcLight Capital
0ARTNERSû)Nûû(ESSûRELINQUISHEDûITSû
interest in the plant to ArcLight, which later
SOLDûITûTOû-ACQUARIE

TWO STEP UP FOR AQUA BUY

Goldman Sachs and Royal Bank of Canada
COMMITTEDûTOûPROVIDEûUPûTOû53BNûINû
BRIDGEûlNANCINGûTOûBACKûAQUA AMERICA’s
acquisition of natural gas distributor
0EOPLES
Aqua America, the water and natural gas
UTILITYûSAIDûITûWOULDûBUYû0EOPLESûINûANûALL
CASHûDEALûVALUEDûATû53BNûINCLUSIVEûOFû
ABOUTû53BNûOFûDEBTû4HEûCOMPANIESûAREû
BASEDûINû0ENNSYLVANIA
Aqua is buying Peoples from
infrastructure funds managed by SteelRiver
)NFRASTRUCTUREû0ARTNERS
The bridge will be replaced by permanent
lNANCINGûTHATûWILLûINCLUDEûAûMIXûOFûEQUITYû
ANDûDEBTû4HEûlNANCINGûWHICHûCANûBEûUSEDû
to backstop the purchase price and
RElNANCEûDEBTûCANûINCLUDEûCOMMONûEQUITYû
SENIORûNOTESûANDûTERMûLOANS
!QUAûEXPECTSûPERMANENTûlNANCINGûWILLû
CONSISTûOFû53BN
BNûOFûCOMMONû
SHARESûANDûEQUITY
LINKEDûSECURITIESûASûWELLû
ASû53M
MûOFûINCREMENTALû!QUAû
!MERICAûDEBTûACCORDINGûTOûAûPRESENTATION
Broadcaster GRAY TELEVISION launched a
53BNûTERMûLOANûTOûBACKûITSûACQUISITIONû
OFûFELLOWûBROADCASTERû2AYCOM
Wells Fargo is leading with Bank of America
Merrill Lynch, Deutsche Bank, JP Morgan and
Royal Bank of Canada
4HEûSEVEN
YEARûTERMûLOANûISûEXPECTEDûTOû
PRICEûINûTHEûBP
BPûOVERû,IBORûRANGEû
WITHûAûûmOORûANDûAûDISCOUNTûOFûû4HEû
deal includes six months of soft call
PROTECTIONûATû
Electricity generator ATLANTIC POWER is
pursuing the second repricing this year of
ITSû53MûTERMûLOANûDUEûINû!PRILû
The company is looking to lower the
SPREADûONûTHEûLOANûTOûBPûOVERû,IBORûWITHû
AûûmOORûAFTERûCUTTINGûTHEûPRICINGûTOûBPû
OVERû,IBORûWITHûAûûmOORûFROMûBPûINû
!PRIL
The transaction will reset soft call
PROTECTIONûOFûûFORûSIXûMONTHS
Goldman Sachs is leading with Wells
Fargo, BAML, Royal Bank of Canada, MUFG and
ICBC

INSPIRE BRANDS TAPS FOR SONIC BUY

2OARKû#APITALû'ROUP

BACKEDûRESTAURANTû

company INSPIRE BRANDS has agreed a

53BNûADD

ONûTOûITSûTERMûLOANûDUEûINû

&EBRUARYûûTOûlNANCEûTHEûACQUISITIONûOFû

FASTûFOODûCHAINû3ONICû#ORP

Barclays led alongside Bank of America

Merrill Lynch, Credit Suisse, Morgan Stanley,

Wells Fargo and KeyBank

The loan is fungible with the existing loan

and priced at the same level of 325bp over

,IBORûWITHûAûûmOORû4HEûDISCOUNTûISûû

4HEûLOANûHASûAûBPûSTEP

DOWN

The deal includes six months of soft call

PROTECTIONûATû

Inspire Brands arranged its existing loan

ATûAûSIZEûOFû53BNûINû*ANUARYûTOûlNANCEû

portfolio company Arby’s Restaurant

'ROUPSûACQUISITIONûOFû"UFFALOû7ILDû7INGS

&IRST

LIENûLEVERAGEûATûTHEûCOMPANYûWILLûBEû

ûTIMESûWITHûTHEûADDITIONALûDEBT

Inspire Brands is buying Sonic for

53BN

CONCRETE PUMPING HOLDINGS launched a

US$350m term loan supporting its buyout

by special purpose acquisition company

)NDUSTREAû!CQUISITIONû#ORP

Credit Suisse is leading with Jefferies and

Stifel

'UIDANCEûONûTHEûSEVEN

YEARûLOANûOPENEDû

INûTHEûBP

BPûOVERû,IBORûWITHûAûû

mOORûANDûAûDISCOUNTûOFûû4HEûLOANûWILLû

include six months of soft call protection at



The acquisition was announced

3EPTEMBERûû)NDUSTREAûISûPARTNERINGûWITHû

the company’s management and is buying a

MAJORITYûSTAKEûFROMû0ENINSULAû0ACIlC

4HEûISSUERûANDûTHEûDEBTûAREûRATEDû""

ASSETMARK FINANCIAL HOLDINGS is in the

market with a US$250m term loan to back a

dividend and to add cash to its balance

SHEETûCredit Suisse LEADS

4HEûSEVEN

YEARûLOANûWILLûHAVEûSIXûMONTHSû

OFûSOFTûCALLûPROTECTIONûOFû

)TûISûGUIDEDûATûBPûOVERû,IBORûWITHûAûû

mOORûANDûAûDISCOUNTûOFû

The company provides wealth

management and technology for

INDEPENDENTûlNANCIALûADVISORS

ENTEGRIS is shopping a US$200m term loan

THATûWILLûBEûUSEDûTOûRElNANCEûDEBT

Goldman Sachs leads with Barclays,

Citigroup, Morgan Stanley, PNC and SunTrust

'UIDANCEûOPENEDûINûTHEûBP

BPû

OVERû,IBORûRANGEûWITHûAûûmOORûANDûAû

DISCOUNTûOFûû4HEûLOANûINCLUDESûSIXû

MONTHSûOFûSOFTûCALLûPROTECTIONûATû

4HEûISSUERûISûRATEDû"A""û4HEûLOANûISû

RATEDû"AA"""



The company, which makes products

designed for the semiconductor

MANUFACTURINGûPROCESSûHADû53Mû

OUTSTANDINGûONûITSûTERMûLOANûASûOFû*UNEûû

Entegris arranged the term loan in March

ûATûAûSIZEûOFû53M

MCAFEE UPS EUROS

Cybersecurity company MCAFEE increased the

SIZEûOFûTHEûEUROûTRANCHEûBYû53M

equivalent and cut the US dollar tranche by

53M

4HEûDEALûREPAYSûEXISTINGûlRSTûANDûSECOND

LIENûFACILITIESû)TûCOMPRISESûTHEûEUROû4ERMû

,OANû"ûWHICHûWASûINCREASEDûTOûõMûFROMû

õMûANDûAû53BNû4ERMû,OANû"û"OTHû

WEREûISSUEDûONûAûCOVENANT

LITEûBASISûANDûAREû

DUEûINû3EPTEMBERû

McAfee originally proposed dropping the

SPREADûONûBOTHûTOûBPûOVERûTHEIRû

RESPECTIVEûBENCHMARKSûWITHûûmOORSûBUTû

priced the euros at 350bp over Euribor while

THEûDOLLARSûREMAINEDûATûBPûOVERû,IBORû

"OTHûINCLUDEûûmOORSûANDûWEREûISSUEDûATû

PAR

The loans include a reset of soft call

protection for six months at 101 and

AMORTISEûATûANûANNUALûRATEûOFû

Morgan Stanley LEDû*OINTûLEADûARRANGERSû

and bookrunners are JP Morgan, Bank of

America Merrill Lynch, Goldman Sachs, Barclays,

Citigroup, Deutsche Bank, Royal Bank of Canada,

UBS and Mizuho

The debt package also includes a

revolving credit facility, which has a

SPRINGINGûLEVERAGEûCOVENANT

)Nû3EPTEMBERûûTHEûCYBERSECURITYû

provider priced the dollars at 450bp over

,IBORûWITHûAûûmOORûANDûTHEûEURO

denominated loan at 425bp over Euribor

WITHûAûûmOOR

4HEûCOVENANT

LITEûDEBTûSUPPORTEDûAû

DIVIDENDûRECAPITALISATIONû4HEûCOMPANYûLATERû

ADDEDûONû53MûANDûõMûTOûTHEûLOANSû

INû$ECEMBERûûTOûBACKûTHEûPURCHASEûOFû

3KY(IGHû.ETWORKS

4HEûBORROWERûISûRATEDû""û4HEûDEBTûISû

RATEDû""

EMPLOYBRIDGE has repriced its US$485m

4ERMû,OANû"ûTOûBPûOVERû,IBORûWITHûAûû

mOORûATûPARûAûBPûCUTûFROMûTHEûSPREADûONû

THEûEXISTINGûLOAN

The Credit Suisse

LEDûCOVENANT

LITEûLOANûWILLû

KEEPûITSûlNALûMATURITYûOFû!PRILû

The loan resets 101 soft call protection for

SIXûMONTHS

The existing loan was priced in April with

AûûmOORûANDûû/)$

#ORPORATEûRATINGSûAREû""

ûANDûFACILITYû

RATINGSûAREû""



EmployBridge was created in the 1990s by

COMBININGûSEVERALûSTAFlNGûORGANISATIONS

Groundwater production company

SEAWOLF RESOURCES HOLDINGS has arranged a

53MûlRST

LIENûTERMûLOANûTOûBACKûITSû

BUYOUTûBYû+,2û'ROUP

4HEûFOUR

YEARûTERMûLOANûPRICEDûATûBPûOVERû

,IBORûWITHûAûûmOORûANDûAûDISCOUNTûOFû