IFR Magazine - October 27, 2018

LEVERAGED LOANS

0LYû'EMSûEXISTINGû53BNûTERMûLOANû
BACKEDûITSûBUYOUTûBYûPRIVATEûEQUITYûlRMû
#LAYTONû$UBILIERûû2ICEû4HEûCOMPANYû
arranged the loan in March at a price of
BPûOVERû,IBORûWITHûAûûmOOR
#ORPORATEûANDûDEBTûRATINGSûAREû""
HYLAND SOFTWAREûWRAPPEDû53MûOFû
incremental loans after moving funds to the
lRST
LIENûFROMûTHEûSECOND
LIENû4HEûDEALû
BACKSûAûDIVIDEND
4HEûDEALûNOWûCOMPRISESûAû53MûlRST
LIENûPORTIONûASûOPPOSEDûTOû53MûANDûAû
53MûSECOND
LIENûPORTIONûVERSUSû
53M
The incremental loans will be fungible
with the company’s existing debt putting its
lRSTûLIENûATû53BNûANDûITSûSECOND
LIENûATû
53M
During syndication, the company lowered
PRICINGûONûTHEûSECOND
LIENûTOûBPûOVERû
,IBORûFROMûBPûOVERû,IBORûWITHûAûû
mOORû4HEûlRST
LIENûPRICEDûINûLINEûWITHû
GUIDANCEûATûBPûOVERû,IBOR
4HEûlRST
LIENûWASûPREVIOUSLYûPRICEDûATû
BPûOVERû,IBORûWHILEûTHEûSECOND
LIENûWASû
PRICEDûATûBPûOVERû,IBOR
Hyland eliminated the discounts on the
ADD
ONSûANDûISSUEDûBOTHûLOANSûATûPARû4HEû
lRST
LIENûLOANûWASûORIGINALLYûPROPOSEDûWITHûAû
DISCOUNTûOFûûANDûTHEûSECOND
LIENûWASû
EXPECTEDûTOûHAVEûAûDISCOUNTûOFû
Credit Suisse led with Goldman Sachs and
UBS
As part of the transaction, Hyland
EXTENDEDûTHEûMATURITYûOFûTHEûlRST
LIENûLOANû
BYûTWOûYEARSûTOû*ULYûûWHILEûTHEûSECOND
LIENûLOANûMATURITYûREMAINEDûINû
The transaction resets soft call protection
OFûûFORûSIXûMONTHSûONûTHEûlRST
LIENûDEBTû
(YLANDûADJUSTEDûTHEûSECOND
LIENûLOANûTOû
include hard call protection of 101 for 18
months as opposed to the initially proposed
HARDûCALLûPROTECTIONûOFû
(YLANDûISûBACKEDûBYûPRIVATEûEQUITYûlRMû
4HOMAû"RAVOû4HEûISSUERûISûRATEDû""nû4HEû
lRST
LIENûLOANûISûRATEDû""nûWHILEûTHEû
SECOND
LIENûLOANûISûRATEDû#AA###

ASCENTY MARKETS US$775m DEAL

Citigroup, ING and Natixis are in the market
WITHûAû53MûLOANûTHATûWILLûBACKû$IGITALû
2EALTYSûANDû"ROOKlELDû!SSETû-ANAGEMENTSû

53BNûPURCHASEûOFû"RAZILIANûDATAûCENTREû

provider ASCENTY

The leveraged loans comprise a US$50m

SENIORûSECUREDûlRST

LIENûREVOLVINGûCREDITû

FACILITYûAû53MûSENIORûSECUREDûlRST

LIENû

TERMûLOANûANDûAû53MûSENIORûSECUREDû

lRST

LIENûDELAYEDûDRAWûTERMûLOAN

4HEû53BNûPURCHASEûPRICEûINCLUDESû

approximately US$425m of capital

expenditures to fund the completion of data

CENTREûDEVELOPMENTû4HEû53BNûOFûTOTALû

estimated capital invested represents a

MULTIPLEûOFûAPPROXIMATELYûûTIMESûTOûû

times underwritten forward stabilised

%BITDAûACCORDINGûTOûAû$IGITALû2EALTY

Digital will acquire Ascenty through

"RAZILIANûSUBSIDIARYû3TELLARû0ARTICIPACOESû

"ROOKlELDû)NFRASTRUCTUREûANûAFlLIATEûOFû

"ROOKlELDû!SSETû-ANAGEMENTûWILLûFUNDûHALFû

of the US$613m equity investment in

EXCHANGEûFORûûOFûTHEûJOINTûVENTUREûENTITYû

EXPECTEDûTOûULTIMATELYûOWNû!SCENTY

'REENû(ILLû0ARTNERSûCURRENTLYûOWNSû!SCENTY

The transaction is expected to close in the

FOURTHûQUARTERûOFû

TA CHEN INTERNATIONAL is seeking

COMMITMENTSûFORûAû53MûlVE

YEARûTERMû

loan led by JP Morgan

The deal is guided at 350bp over Libor

WITHûAûûmOORûANDûAûû/)$û4HEREûWILLûBEû

ûSOFTûCALLûPROTECTIONûFORûSIXûMONTHS

The loan will back the acquisition of

!RCONICSû4EXARKANAû4EXASûROLLINGûMILL

Arconic and Ta Chen, a US subsidiary of

aluminium and stainless steel distributor Ta

Chen Stainless Pipe Co, announced the

ACQUISITIONûEARLIERûTHISûMONTH

There are B1/B corporate ratings and B3/B

FACILITYûRATINGS

Software company SYNCSORT is repricing

ANûEXISTINGû53MûTERMûLOAN

The company is seeking to cut pricing to

BP

BPûOVERû,IBORûWITHûAûûmOORûANDû

Aûû/)$

)Nû!UGUSTûû3YNCSORTûSOUGHTûAû

53MûlRST

LIENûTERMûLOANûTHATûPRICEDûATû

BPûOVERû,IBORûANDûAû53MûSECOND

LIENûTERMûLOANûTHATûPRICEDûATûBP

The loan, which matures in August 2024,

will have soft call protection of 101 will be

RESETûFORûSIXûMONTHS

Bank of America Merrill Lynch is leading the

lNANCING

GFL INCREASES ADD-ON

GFL ENVIRONMENTALûINCREASEDûANûADD

ONûTOûITSû

TERMûLOANûDUEûINû-AYûûTOû53BNû

FROMû53BNûAFTERûDROPPINGûAûPROPOSEDû

53MûBOND

The environmental services company will

use the proceeds to back its merger with

7ASTEû)NDUSTRIES

Barclays led alongside BMO and Royal Bank

of Canadaû&INALûCOMMITMENTSûWEREûDUEûONû

&RIDAY

In exchange for increasing the size of the

deal, the company widened the discount to

ûFROMûINITIALûGUIDANCEûOFû

û4HEû

ADD

ONûPRICEDûATûBPûOVERû,IBORûWITHûAûû

mOORûTHEûSAMEûASûTHEûEXISTINGûLOAN

The deal includes soft call protection of

ûONûTHEûCOMBINEDûTERMûLOANû4HEûISSUERû

ISûRATEDû""û4HEûLOANûISûRATEDû""

7ASTEû)NDUSTRIESûPLANSûTOûRElNANCEûITSû

EXISTINGûDEBTûATûTHEûCLOSEûOFûTHEûDEAL

The combined companies will together

HAVEûANûENTERPRISEûVALUEûOFû53BN

BC Partners, Ontario Teachers’ Pension

Plan and other GFL shareholders are

PROVIDINGûEQUITYûTOûBACKûTHEûDEALû4HEûlRMSû

BACKEDûAûRECAPITALISATIONûFORû'&,ûINû-AY

UNIVERSAL HEALTH SERVICES has increased its

total revolving commitments as well as term

loan A commitments, and pushed out

MATURITIES

This is the sixth amendment to the credit

AGREEMENTûlRSTûDATEDû.OVEMBERûûJP

Morgan ISûADMINISTRATIVEûAGENT

Revolving commitments increased by

US$200m to total US$1bn, and the tranche A

term loan commitments rose by about

53MûTOû53BNû4HEûMATURITYûDATESû

were extended to October 23 2023, from

!UGUSTûû

Universal Health said it expects to

ADDûAûSEVEN

YEARûTERMûLOANû"ûOFûUPûTOû

53M

It will use the proceeds to repay its

borrowings under its existing revolving

CREDITûANDûTERMûLOANû!ûTOûREDEEMûITSûû

senior secured notes due 2019 and for

GENERALûCORPORATEûPURPOSES

JP Morgan, Bank of America Merrill Lynch,

Credit Agricole and SunTrust are joint lead

arrangers and joint bookrunners on the

REVOLVINGûANDûTERMûLOANû!ûFACILITIES

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