LOANS LEVERAGED LOANS4HEûNEWûlVE
YEARûFACILITYûCOMPRISESûAû
US$700m revolver and a US$1.18bn term
loan.
Pricing at close was 150bp over Libor,
based on a leverage grid.
US Bank is lead-left arranger and
administrative agent.
Bank of America Merrill Lynch, Wells Fargo
and MUFG are joint lead arrangers and
syndication agents.
Ten lenders in total committed to the
oversubscribed facility.
Polaris will have pro forma leverage of
about 2.5 times Ebitda.
Polaris makes off-road and on-road
recreational vehicles, including
snowmobiles and motorcycles.
ROYAL CARIBBEAN BAGS US$700mROYAL CARIBBEAN CRUISES has signed a
US$700m 364-day unsecured term loan to
partially fund its acquisition of a 66.67%
stake in privately-owned Silversea Cruise
Holding.
4HEûlNANCINGûPAYSûAûMARGINûRANGINGû
from 90bp to 150bp over Libor depending
on rating, while a ticking fee comes into
force after a 60-day grace period.
For A-/A3 the margin is 90bp over
Libor and the ticking fee is 8bp; for BBB+/
Baa1 it is 95bp and 9bp; for BBB/Baa2 it is
100bp and 10bp; for BBB–/Baa3 it is 115bp
and 15bp; and for BB+/Ba1 it is 150bp
and 20bp.
Bank of America Merrill Lynch, JP Morgan,
Citigroup, Goldman Sachs and Morgan Stanley
HAVEûCOMMITTEDûTOûTHEûlNANCINGûONûANû
equal basis as joint lead arrangers and joint
bookrunners.
JP Morgan is administrative agent, while
BAML, Citigroup, Goldman Sachs and
Morgan Stanley are co-syndication agents.
In June, Royal Caribbean announced it
had agreed to acquire a majority stake in
ULTRA
LUXURYûCRUISEûLINEû3ILVERSEAûFORûABOUTû
US$1bn.
Royal Caribbean is rated BBB– by S&P.
LATIN AMERICA
MEXICO
VITRO SIGNS US$700m REFIGlass maker VITRO has signed a US$700m
lVE
YEARûLOANûRElNANCINGûDEBTûTOTALLINGû
US$689m.
4HEûlNANCINGûREDUCESûINTERESTûEXPENSESû
by around US$12m a year and improves
terms and conditions.
The loan pays an initial margin of 200bp
over Libor, subsequently ratcheting on a net
debt to Ebitda grid.
4HEûlNANCING ûWHICHûWASûLEDûBYûBBVA
Bancomer and HSBC, closed 60%
oversubscribed with a group of 10 banks
participating.
)Nû/CTOBERûû6ITROûSIGNEDûAû53Mû
loan with Banco Inbursa to partly fund its
53MûACQUISITIONûOFû00'û)NDUSTRIESûmATû
glass business.
4HATûlNANCINGûPAIDûBPûOVERû,IBORûANDû
was due to mature in 2023.
In December 2016 the company signed a
US$230m loan with BBVA to back its
US$310m acquisition of the automotive
glass business of Pittsburgh Glass Works.
4HATûlNANCINGûPAIDûAûMARGINûRANGINGû
from 325bp to 400bp over Libor, depending
on leverage and was also due to mature in
2023.LEVERAGED LOANS
UNITED STATES
LOAN FUNDS SEE OUTFLOWS"ANKûLOANûFUNDSûSAWûTHEûlRSTûWEEKûOFû
OUTmOWSûAFTERûûCONSECUTIVEûWEEKSûOFû
INmOWSûASûMARKETûVOLATILITYûTRIGGEREDûBYû
the trade war dented investors’ appetite
for risk assets.
Investors pulled US$184.2m from loan
funds in the week ending July 4, according
TOû,IPPERû4HISûMARKEDûTHEûlRSTûWEEKûOFû
OUTmOWSûFROMûLOANûFUNDSûSINCEûTHEûWEEKû
ending February 14.
4HEûTRADEûCONmICTûBETWEENûTHEû53ûANDû
China escalated sharply as the tariffs on
THEûlRSTûBATCHûOFû53BNûOFûEACHû
country’s imports kicked in on Friday. US
tariffs on another US$16bn of Chinese
goods are due to go into effect in two
weeks.
President Trump also upped the ante by
threatening that Washington could add
another US$500bn, Reuters reported.
“Amid market volatility, investors are
increasingly favouring bond strategies
with less credit risk,” said Todd
Rosenbluth, senior director of ETF and
mutual fund research at CFRA.
“High-yield and bank loan funds incur
greater credit risk. Investors are preferring
safety of treasuries and other investment-
grade securities.”
This tit-for-tat trade dispute has dialled
up the risk-off sentiment across markets.
The US secondary loan market is also
showing signs of fatigue.The average bid for US loans has
dropped to 98.64 from a 2018 peak in late
April of 99.01.
The percentage of loans trading above
face value or par dropped to 25% on July 5
from nearly 60% on May 1. It had dropped
TOûûONû*ULYû ûTHEûLOWESTûlGUREûSINCEû
September 2016.INFINITE WRAPS US$605m DEALINFINITE ELECTRONICS, a supplier of radio
FREQUENCY ûlBREûOPTICûANDûMICROWAVEû
components, has wrapped up US$605m in
lRST
LIENûCREDITûFACILITIESûINûCONJUNCTIONû
with a dividend recapitalisation.
Antares Capital led the deal with Golub
Capital and Ares Management as joint lead
arrangers.
4HEûlRST
LIENûFACILITIESûCOMPRISEûAû
53MûlVE
YEARûREVOLVERûANDûAû53Mû
term loan.
0RICINGûFORûBOTHûlNALISEDûATûBPûOVERû
,IBORûWITHûAûûmOORû4HEûTERMûLOANûHASû
ûSOFTûCALLûPROTECTIONûFORûSIXûMONTHS
%XISTINGûLENDERSûWEREûPAIDûAûBPû
amendment fee. The new money portion
WASûISSUEDûATûAûû/)$
The facilities will be governed by a
MAXIMUMûTOTALûNETûLEVERAGEûCOVENANT
)NûADDITIONûTOûTHEûlRST
LIENûFACILITIES ûAû
US$170m second-lien term loan has been
privately placed.
MERIDIANLINK increased pricing on
the term loan portion of a US$350m credit
THATûFUNDSûPRIVATEûEQUITYûlRMû4HOMAû
Bravo’s acquisition and merger of the
company with divisions of CRIF Lending
Solutions.
Antares Capital arranged the funding.
Golub Capital is joint lead arranger.
The US$315m seven-year covenant-lite
term loan priced at 400bp over Libor
WITHûAûûmOORûANDûAûSTEPDOWNûTOûBPû
ATûNETûlRST
LIENûLEVERAGEûOFûûTIMESû
Final pricing increased from guidance
of 350bp.US LEVERAGED LOANS
BOOKRUNNERS: 1/1/2018–30/6/2018
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 391 81,222.20 10.8
2 JP Morgan 330 72,010.42 9.6
3 Wells Fargo 272 60,587.58 8.1
4 Barclays 197 47,192.51 6.3
5 Credit Suisse 183 40,769.05 5.4
6 Goldman Sachs 177 38,804.13 5.2
7 Deutsche Bank 174 36,107.35 4.8
8 Citigroup 157 35,224.14 4.7
9 RBC 150 27,978.16 3.7
10 Morgan Stanley 118 26,176.81 3.5
Total 1,285 751,815.94
Excluding Project Finance.
Source: Thomson Reuters SDC code: P2