IFR Magazine - October 27, 2018

UBS LEDûTHEûTRANSACTIONû,AWûlRMû+RAMERû
,EVINûREPRESENTEDûTHEûLEADûARRANGER
(OUSTON
BASEDû+,2û'ROUPûISûAûMERCHANTû
BANKûTHATûFOCUSESûONûENERGY

ALBERTSONS SEEKS US$2bn

Grocery store chain ALBERTSONS is out with a
53BNûTERMûLOANûTOûRElNANCEûDEBTûCredit
Suisse ISûLEADING
4HEûSEVEN
YEARûLOANûISûEXPECTEDûTOûPRICEûATû
BPûOVERû,IBORûWITHûAûûmOORûANDûAû
DISCOUNTûOFûû4HEûDEALûINCLUDESûSIXû
MONTHSûOFûSOFTûCALLûPROTECTIONûATû
4HEûNEWû4ERMû,OANû"ûALONGûWITHûCASHû
ANDûMONEYûFROMûTHEûCOMPANYSûASSET
BASEDû
lending facility, will be used to pay down the
EXISTINGû4ERMû,OANû"ûDUEûINû!UGUSTû
The company repriced its Term Loan B4 in
UNEûûATûAûPRICEûOFûBPûOVERû,IBORû4HEû
LOANûWASûAPPROXIMATELYû53BNûINûSIZE
4HEûISSUERûISûRATEDû""û4HEûLOANûISûRATEDû
"A""

US ANESTHESIA PARTNERS launched a
53MûADD
ONûTOûITSûTERMûLOANûDUEûINûUNEû
ûTOûlNANCEûAûDIVIDEND
Goldman Sachs leads the deal alongside
Barclays, JP Morgan, Morgan Stanley, BMO,
CapitalOne and Antares
The loan is expected to be issued at a
DISCOUNTûOFûûANDûWILLûBEûPRICEDûATûBPû
OVERû,IBORûWITHûAûûmOORûALONGûWITHûTHEû
EXISTINGûLOAN
The borrower added on US$190m to the
loan in January to back acquisition activity
ANDûREPRICEDûTHEûDEBTûATûTHEûCURRENTûLEVEL
The company is also asking lenders to
waive a covenant limited restricted
PAYMENTSûFORûTHISûDEALûANDûTOûSETûTHEûlRST
LIENûINCREMENTALûRATIOûCAPACITYûATûûTIMESû
ASûOPPOSEDûTOûûTIMESû53û!NESTHESIAûISû
OFFERINGûAûBPûFEEûFORûTHEûAMENDMENTS
The issuer is backed by private equity
lRMû7ELSHû#ARSONû!NDERSONûû3TOWE
Power producer TALEN ENERGY is lining up a
53MûLOANûTOûPAYûDOWNûDEBT

The MUFG

LEDûDEALûISûSPLITûBETWEENûAû

US$450m term loan and a US$25m revolving

CREDITûFACILITY

A bank presentation will take place on

4UESDAY

Talen tacked on US$500m to its term loan

INû!PRILûûBRINGINGûTHEûTOTALûSIZEûTOû

53BNû4HEûLOANûPRICEDûATûBPûOVERû

,IBORûWITHûAûûmOOR

Life and health insurance products

distributor INTEGRITY MARKETING is lining up

US$480m of debt to back a dividend

RECAPITALISATION

The company was purchased by middle

MARKETûPRIVATEûEQUITYûlRMû(''#ûINû*ULYû



Antares Capital ISûLEADING

4HEûDEALûCOMPRISESûAû53MûlRST

LIENû

TERMûLOANûWITHûAûMûDELAYED

DRAWû

COMPONENTûAû53MûSECOND

LIENûTERMû

LOANûWITHûAû53MûDELAYED

DRAWû

component, and a US$20m revolving credit

FACILITY

FIRST DATA AGREES REFI

Payment processing provider FIRST DATA has

AGREEDû53BNûINûlVE

YEARûCREDITûFACILITIESûTOû

RElNANCEûDEBT

4HEûFACILITIESûCOMPRISEûAû53BNû

REVOLVINGûCREDITûANDûAû53BNûTERMûLOANû

!û3OMEû53BNûINûPROCEEDSûFROMûTHEû

53BNû4,!ûWILLûRElNANCEûANûEXISTINGû

4,!ûDUEû

The company signed the existing

53BNû4,!ûINûû4HEû53BNû

REVOLVINGûCREDITûWILLûREPLACEûAû53BNû

revolving credit of the same size, also due

û4HEûREMAINDERûWILLûREDEEMûUNSECUREDû

NOTES

Arranging banks are Bank of America Merrill

Lynch, PNC, Citigroup and KKR

Drawn pricing opens at 150bp over Libor

BASEDûONûLEVERAGEûABOVEûûTIMESû4HEû

REVOLVINGûCREDITûPAYSûBPûWHENûLEVERAGEû

ISûABOVEûûTIMESûANDûBPûFORûLEVERAGEûOFû

ûTIMESûORûBELOW

#ORPORATEûRATINGSûAREû""

"A

The move is indicative of the strength of

the loan market compared to the bond

MARKET

In a rising interest rate environment,

mOATING

RATEûASSETSûLIKEûLOANSûAREûPROVINGûAû

more attractive investment than bonds

because loan yields will go up along with

interest rates as opposed to bond yields that

remain steady and end up performing

POORLYûINûRELATIVEûVALUEûTERMS

-OREûTHANû53BNûHASûBEENûINVESTEDû

in US loan mutual funds this year, with just

lVEûWEEKSûOFûOUTmOWSûALLûYEARûACCORDINGûTOû

,IPPERûDATAû)NûûMOREûTHANû53BNû

HASûBEENûPULLEDûFROMûHIGH

YIELDûBONDûFUNDSû

INCLUDINGû53BNûINûTHEûWEEKûENDINGû

/CTOBERû

7ORKERSûCOMPENSATIONûCAREû

management company PARADIGM OUTCOMES

CUTûPRICINGûANDûSHIFTEDû53MûTOûTHEûlRST

LIENûPORTIONûOFûITSû53MûLOAN

The deal supporting its buyout by OMERS

0RIVATEû%QUITY

4HEûCOMPANYûINCREASEDûTHEûlRST

LIENûTERMû

LOANûTOû53MûFROMû53MûANDûCUTûTHEû

SIZEûOFûTHEûSECOND

LIENûTERMûLOANûTOû

53MûFROMû53Mû!û53Mû

REVOLVINGûCREDITûFACILITYûROUNDSûOUTûTHEûDEAL

0RICINGûONûTHEûSEVEN

YEARûlRST

LIENûLOANû

DROPPEDûTOûBPûOVERû,IBORûWITHûAûûmOORû

ANDûAûDISCOUNTûOFûûFROMûGUIDANCEûINûTHEû

BP

BPûRANGEûWITHûAûûmOORûANDûAû

DISCOUNTûOFûû4HEûDEALûINCLUDESûAûBPû

LEVERAGE

BASEDûSTEP

DOWN

4HEûSECOND

LIENûEIGHT

YEARûTERMûLOANû

PRICEDûATûBPûOVERû,IBORûWITHûAûûmOORû

ANDûAûDISCOUNTûOFûûAFTERûCIRCULATINGûATû

BP

BPûWITHûAûûmOORûANDûAûDISCOUNTû

OFû

Credit Suisse led with SunTrust

4HEûlRST

LIENûLOANûINCLUDESûSOFTûCALLû

protection of 101 for six months while the

SECOND

LIENûLOANûWILLûHAVEûHARDûCALLû

PROTECTIONûOFû

Both term loans were issued on a

COVENANT

LITEûBASIS

The corporate ratings are B3/B while the

lRST

LIENûDEBTûISûRATEDû""û4HEûSECOND

LIENû

LOANûISûRATEDû#AA###û4HEûBORROWERûISû

#OMETû!CQUISITION

OMERS is acquiring a majority stake in

THEûCOMPANYûFROMûPRIVATEûEQUITYûlRMû

3UMMITû0ARTNERS

PLY GEM UPS TL TO US$805m

Construction products maker PLY GEM

HOLDINGS increased its term loan to US$805m

from US$665m and made additional

changes to the structure as it lowered

PRICING

Proceeds will back the company’s merger

with metal products company NCI Building

3YSTEMSû4HEûADDITIONALûMONEYûWILLûALLOWû

THEûCOMPANYûTOûRElNANCEûOUTSTANDINGûDEBTû

UNDERûANûASSET

BASEDûLENDINGûFACILITY

4HEûCOMPANYûISSUEDûTHEûDEBTûASûAûSEVEN

year term loan, rather than a fungible

ADD

ONûTOûITSûEXISTINGûTERMûLOANûDUEûINû!PRILû

ûWHICHûWASûINITIALLYûPROPOSED

Ply Gem dropped pricing on the loan to

BPûOVERû,IBORûFROMûBPûWITHûAûûmOORû

AMIDûSTRONGûDEMANDû4HEûLOANûWASûISSUEDûATû

par instead of with the originally proposed

DISCOUNTûOFû

The loan will have six months of soft call

PROTECTIONûATû

Credit Suisse led alongside JP Morgan, Royal

Bank of Canada, UBS, Barclays, Bank of America

Merrill Lynch, Deutsche Bank, Goldman Sachs,

Credit Agricole, Jefferies, MUFG, Natixis, Societe

Generale and US Bank

US LEVERAGED LOANS
BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share
bank or group issues US$(m) (%)

1 BAML 537 111,328.87 10.2
2 JP Morgan 496 110,991.02 10.1
3 Wells Fargo 378 86,076.69 7.9
4 Barclays 272 64,289.30 5.9
5 Goldman Sachs 259 56,451.72 5.2
6 Credit Suisse 256 55,758.84 5.1
7 Deutsche Bank 238 50,288.69 4.6
8 Citigroup 228 49,068.18 4.5
9 RBC 220 41,146.22 3.8
10 Morgan Stanley 174 39,197.43 3.6
Total 1,962 1,095,240.17
Excluding Project Finance.

Source: Refinitiv SDC code: P2