IFR International - 08.09.2018

80 International Financing Review September 8 2018

ASIA-PACIFIC

TWO DEGREES MOBILE REDIALS FOR REFI

New Zealand mobile phone operator TWO

DEGREES MOBILE (2degrees) is back in the

market for a NZ$250m (US$165m) three-

year loan, barely six months after

completing a smaller, shorter-tenor

financing.

Mandated lead arranger and bookrunner

ING Bank underwrote the bullet loan, which

will go toward refinancing and funding

capital expenditure requirements.

There is also an uncommitted NZ$35m

accordion that could be used to finance

future capex, subject to an improvement in

Ebitda.

Bank of New Zealand has joined the deal as

MLA. The two lenders pre-funded the facility

on July 31 and launched it into general

syndication in August.

The facility pays an opening interest

margin of 330bp over BKBM based on

opening leverage of 2.0 times. The margins

adjust to 380bp for leverage greater than 2.5

times, 280bp for leverage of 1.5–2.0 times,

and 240bp for lower than 1.5 times. The

margin stays flat at 330bp as long as

leverage is between 2.0 and 2.5 times.

Banks are being invited to join at three

levels: MLAs taking NZ$35m or more earn

fees of 100bp for a top-level all-in pricing of

363.33bp. Lead arrangers committing

NZ$25m–$35m receive 85bp for an all-in of

358.33bp, while arrangers coming in for

NZ$15m–$25m are offered 65bp for an all-in

of 351.67bp.

Funds will refinance debt, including a

NZ$200m two-year loan that 2degrees

closed in March. BNZ and ING were the

MLAs on the facility, which paid an opening

margin of 240bp over BKBM and a 30bp fee.

Three other banks joined.

Sources familiar with the situation said

the March loan was not a permanent

financing solution, which is why 2degrees is

back after a few months for the bigger

borrowing.

Toronto-listed private equity firm Trilogy

International Partners owns 73.2% of

2degrees. In June 2008, it acquired a 26%

stake in 2degrees, then called New Zealand

Communications, and doubled it to 56% just

over a year later.

RESTRUCTURING

EUROPE/MIDDLE EAST/

AFRICA

STEINHOFF UNIT WRAPS DEAL

HEMISPHERE INTERNATIONAL PROPERTIES, the

property portfolio of troubled South African

retailer STEINHOFF INTERNATIONAL that holds

about 140 property assets, has finalised its

debt restructuring.

Under the terms of the restructuring,

Hemisphere’s new €774.8m secured term

loan facility will mature three years after

the date on which the debt restructurings of

Steinhoff Europe (SEAG) and Steinhoff

Finance Holding (SFH) become effective or

on December 31 2021, whichever comes

first.

The facility pays an interest rate 10%,

payable in cash on a ‘pay if you can’ basis -

subject to an excess cash sweep - with any

interest not paid to be payable as PIK

interest, which will compound and

capitalise on a semi-annual basis.

Hemisphere entered into a lock-up

agreement with creditors behind its €750m

revolving credit facility on July 26 to

implement the agreed restructuring.

On July 20 Steinhoff officially entered into

a lock-up agreement with the creditors of

SEAG, SFH and Stripes US Holdings

regarding a financial restructuring of the

debt related to these entities.

Steinhoff aims to implement the

restructuring of these units within three

months and the terms of the restructuring -

as set out under the lock-up agreement - will

remain in place for three years, subject to

any extension.

Steinhoff is fighting for survival after

discovering accounting irregularities last

December that triggered an 85% share price

slide in the group and a raft of changes in its

boardroom and leadership.

EMEA SPONSORED LOAN BOOKRUNNERS

BY VOLUME: 1/1/2018 TO DATE

Europe, Middle East, Africa

Managing No of Total Share

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

1 BNP Paribas 29 5,537.24 8.5

2 Deutsche Bank 23 5,449.71 8. 4

3 HSBC 20 3,904.65 6. 0

4 JP Morgan 16 3,726.24 5. 7

5 Goldman Sachs 20 3,603.86 5.5

6 Credit Agricole 26 3,534.15 5. 4

7 SG 21 3,510.41 5. 4

8 Barclays 16 3,270.67 5. 0

9 Natixis 20 3,261.30 5. 0

10 Credit Suisse 11 2,702.39 4 .2

Total 96 65,070.18

Excluding project finance.

Source: Thomson Reuters SDC code: P13

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9 Loans 2250 p67-80.indd 80 07/09/2018 18:55:13