Oct. 27 Week
ESSAR STEEL ALGOMA INC. $625 million secured notes: $350 million senior secured notes due 2019 (Ba3/B+), non-callable for two years, talked at a discount to yield 8% area, and $275 million junior secured notes due 2021 (B3/B-), non-callable for three years, talked at a discount to yield 10½% area; Deutsche Bank Securities Inc. (left books), Goldman Sachs & Co., Jefferies LLC (joint books), Imperial Capital, Canaccord (co's); Rule 144A and Regulation S for life; 40% equity clawbacks during the non-call periods; 101% poison put for both tranches; also $350 million term loan; to refinance debt and for general corporate purposes; Sault Ste. Marie, Ont.-based manufacturer of hot and cold rolled steel products; roadshow started Oct. 21; books close 2 p.m. ET Wednesday.
ABENGOA YIELD PLC: €200 million senior notes due 2019 (unrated); BofA Merrill Lynch (joint books, bill and deliver), Citigroup, HSBC, Santander (joint books), Rule 144A and Regulation S; non-callable; 101% poison put; to finance the acquisition of three renewable energy assets from Abengoa SA; London-based sustainable total return company that owns a diversified portfolio of contracted assets in the energy and environment sectors; roadshow Oct. 27-30, pricing thereafter; early guidance in the mid 5% yield context.
EVRAZ INC. NA CANADA: $500 million five-year senior secured notes; Citigroup Global Markets (joint books, bill and deliver), Goldman Sachs & Co. (joint books), Credit Agricole CIB, ING, Moelis, SG CIB, UBS Investment Bank (co's); Rule 144A for life; callable after 2.5 years at par plus 50% of the coupon; 2.5-year 35% equity clawback at par plus coupon; 101% poison put; to repay a portion of the subordinated related party loan from an affiliate of Evraz Group SA; Regina, Saskatchewan-based steel producer; roadshow Oct. 27 week; early guidance in the 7% area.
ARROW GLOBAL PLC and ARROW GLOBAL GUERNSEY HOLDINGS LTD.: €220 million senior secured floating rate notes due 2021; Goldman Sachs International (sole); Rule 144A and Regulation S; non-callable for three years; proceeds, together with cash on hand, to fund the acquisition of the Capquest group and pay down Arrow Global’s revolver; Manchester, England-based consumer debt purchasers and providers of receivables management solutions; roadshow Oct. 28-30.
Nov. 3 Week
OPTIMA SPECIALTY STEEL, INC.: $300 million senior secured notes due 2019 (single B ratings expected); Deutsche Bank Securities Inc. (left books), Jefferies LLC (joint books), PNC Capital Markets (co); Rule 144A and Regulation S for life; non-callable for three years; 35% equity clawback during the non-call period; 101% poison put; to refinance debt and for general corporate purposes; Miami-based specialty steel manufacturer; investor call Oct. 28; pricing Nov. 3 week.
Expected Fourth Quarter Business
SCIENTIFIC GAMES CORP.: $3.45 billion notes backed by a one-year bridge loan led by J.P. Morgan Securities LLC: $750 million senior secured notes, $2.2 billion eight-year senior unsecured notes and $500 million 10-year senior unsecured notes; also $2,085,000,000 bank debt led by Bank of America Merrill Lynch, JPMorgan, Deutsche Bank Securities Inc.; to help fund the acquisition of Bally Technologies Inc. for about $5.1 billion, including about $1.8 billion of net debt, expected to close in early 2015; Scientific Games is a New York-based developer of technology-based gaming products and services; Bally Technologies is a Las Vegas-based provider of gaming products and services; expected September-October business.
MEDIA GENERAL INC.: $300 million senior notes due 2022 (B3/B+); RBC Capital Markets, with other syndicate names expected to be announced; also $1,015,000,000 in new bank debt launched Oct. 24; to fund the merger with LIN Media LLC; Media General is a Richmond, Va.-based local television broadcasting and digital media company; LIN Media is an Austin, Texas-based local multimedia company.
On The Horizon
Proposed debt financings in the competing bids to acquire FAMILY DOLLAR STORES, INC.:
DOLLAR GENERAL: $12.3 billion of debt including bonds and bank loans, backed by a commitment from Goldman Sachs Bank USA and Citigroup Global Markets Inc., to help fund the acquisition of Family Dollar Stores; Dollar General is a Goodlettsville, Tenn.-based discount retailer. Family Dollar is a Matthews, N.C.-based chain of discount stores. Dollar Tree is a Chesapeake, Va.-based discount store operator.
DOLLAR TREE, INC.: $2.8 billion of unsecured notes and $5.64 billion bank debt to help finance the acquisition of Family Dollar Stores, expected to close early 2015; JPMorgan Chase Bank, NA, Wells Fargo Bank, Bank of America, Royal Bank of Canada and U.S. Bank, has provided committed financing; Dollar Tree is a Chesapeake, Va.-based discount store operator; expected post-Labor Day business.
ACTUANT ELECTRICAL: $60 million senior subordinated notes; also $150 million credit facility led by RBC Capital Markets and NXT Capital; to help fund the buyout of the company by Sentinel Capital Partners from Actuant Corp.; Actuant Electrical is a Menomonee Falls, Wis.-based provider of products for the retail do-it-yourself, marine, industrial OEM and wholesale electrical markets.
ALBEA: $150 million five-year senior secured PIK toggle notes (expected ratings Caa2/CCC); JPMorgan, BofA Merrill Lynch (joint); non-callable for one year; to fund a dividend; Gennevilliers, France-based personal care products company.
AMEC PLC: Debt financing backing the £1.9 billion acquisition of Baar, Switzerland-based engineering conglomerate Foster Wheeler AG, expected to close during the second half of 2014; BofA Merrill Lynch served as exclusive financial adviser to AMEC; AMEC is a multinational consultancy, engineering and project management company based in London.
BUENA VISTA GAMING AUTHORITY: $220 million eight-year senior secured notes; Credit Suisse Securities (USA) LLC, BofA Merrill Lynch (joint); Rule 144A and Regulation S for life; callable in four years at par plus 50% of the coupon; annual mandatory redemption offer of 50% of available funds starting at 103; 101% poison put; to fund construction of the Buenavue Casino; Ione, Calif.-based tribal gaming firm.
CIT GROUP INC.: Up to $2 billion of new debt to fund its merger with IMB Holdco LLC, the parent company of OneWest Bank NA, a privately owned regional bank based in Pasadena, Calif.; J.P. Morgan Securities LLC is serving as financial adviser to CIT. Bank of America Merrill Lynch is representing IMB; CIT is a New York-based bank holding company.
GLOBAL CASH ACCESS HOLDINGS INC.: $400 million senior notes and $850 million credit facility; Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners; to fund the acquisition of Multimedia Games Holding Co. Inc., expected to close in early 2015; bonds are backed by a $400 million senior unsecured bridge loan priced at Libor plus 675 bps with a 1% Libor floor, with a 50 bps every three months until it hits a cap; Global Cash is a Las Vegas-based provider of fully integrated cash access solutions and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.
GTECH SPA: Expected dollar- and euro-denominated high-yield, split-rated or investment-grade bonds backing $10.7 billion one-year senior unsecured bridge loan (45% euro-denominated and 55% dollar-denominated); Credit Suisse, Barclays, Citigroup (lead arrangers and joint bookrunners for the bridge), BNP Paribas, Credit Agricole CIB, Deutsche Bank, Intesa Sanpaolo, JPMorgan, Mediobanca, SG CIB, Scotia Capital, Royal Bank of Scotland, UniCredit (co-lead managers), Fifth Third Bank (manager); merger and acquisition financing (company announced a merger with Las Vegas-based International Game Technology, Inc., expected to be completed during the first half of 2015); leading commercial operator and provider of technology in the regulated worldwide gaming market; corporate headquarters will be in the United Kingdom, operating headquarters will be in Las Vegas, Providence and Rome.
KINDRED HEALTHCARE, INC.: $1.4 billion senior notes; committed financing from Citigroup Global Markets Inc. and J.P. Morgan Securities LLC; to fund the merger with Gentiva Health Services, Inc., an Atlanta-based provider of home health, hospice and community care services, in a transaction valued at $1.8 billion, expected to close in the first quarter of 2015; Kindred Healthcare is a Louisville, Ky.-based health care services company.
MILESTONE AVIATION GROUP LTD.: $350 million senior notes due 2017; J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Huntington Investment Co., Jefferies LLC; Rule 144A and Regulation S; to pay down secured debt, with any remaining proceeds for general corporate purposes; Dublin-based helicopter leasing company; pricing early in the Aug. 4 week.
NINE WEST HOLDINGS INC.: $455 million senior unsecured bridge loan or senior notes; also $720 million credit facility launched Feb. 14, including a $445 million term loan and $300 million unsecured term loan led by Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and MCS Capital Markets LLC and $300 million asset-based revolver led by Wells Fargo Securities LLC and Bank of America Merrill Lynch; to help fund the buyout of parent company Jones Group Inc. by Sycamore Partners; marketer and wholesaler of apparel, footwear and accessories.
NORWEGIAN CRUISE LINE HOLDINGS LTD.: Bond and bank debt to help fund $3,025,000,000 acquisition of Prestige Cruises International Inc. expected to close in the fourth quarter of 2014; Barclays, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.; Norwegian Cruise Line is a Miami-based cruise company. Prestige is the parent company of Oceania Cruises and Regent Seven Seas Cruises.
PROSPECTOR OFFSHORE DRILLING SA: $100 million five-year second-lien bonds via subsidiary Prospector Finance II Sarl; DNB Markets, Pareto Securities, Swedbank (joint); proceeds along with funds from $270 million loan to fully finance the delivery of Prospector 5 drilling rig, which is expected to occur in early June, to refinance existing debt secured by the Prospector 1 drilling rig and for general corporate purposes; Luxembourg-based drilling contractor.
ROOSTER ENERGY LTD.: $100 million senior secured notes due 2019 (Caa1/CCC+); Imperial Capital LLC (sole books), Cowen & Co. (co); Rule 144A and Regulation S with contingent registration rights; callable after two years at par plus 75% of the coupon, with premium declining ratably every six months; to refinance debt, to fund the cash portion of acquisition of Morrison Well Services, LLC and for general corporate purposes; Houston-based oil and natural gas exploration and production company.
SIGNATURE GROUP HOLDINGS, INC.: $300 million senior secured bonds; private; proceeds, along with proceeds from a registered offering of common stock, to fund the acquisition of Global Recycling and Specification Alloys (GRSA) business from Aleris Corp.; Deutsche Bank Securities Inc. acted as exclusive financial adviser Signature, Credit Suisse and KeyBanc Capital Markets Inc. acted as financial advisers to Aleris; Signature is a Sherman Oaks, Calif.-based holding company that invests primarily in the U.S. industrial and commercial marketplace; GRSA is a Cleveland-based recycled aluminum company; investor conference call 8:30 a.m. ET Oct. 21.
SILVERLEAF RESORTS, INC.: $175 million senior secured notes due 2019; Deutsche Bank Securities Inc.; non-callable for three years; to pre-fund development of vacation ownership inventory, to refinance a portion of the company’s existing debt, to pay a dividend to the sponsor; Dallas-based resort operator.
| TRAVELPORT LUXCO: $500 million senior unsecured bridge loan which may be replaced by or exchanged for high-yield bonds; also $2.4 billion credit facility via Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. scheduled to launch at an Aug. 4 bank meeting; to refinance the first- and second-lien term loans and some of the senior floating-rate notes due 2016, 13 | 7/8% senior notes due 2016, 11 | 7/8% senior subordinated notes due 2016, 11 | 7/8% dollar senior subordinated notes due 2016 and 10 | 7/8% senior subordinated euro notes due 2016 issued by Travelport LLC and Travelport Holdings, Inc.; Atlanta-based provider of transaction processing services to the travel industry.
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| VALEANT PHARMACEUTICALS INTERNATIONAL INC.: $12.35 billion notes: $2.75 billion senior secured notes backed by a one-year secured bridge loan priced at Libor plus 425 | bps with a 1% Libor floor, and $9.6 billion senior unsecured notes backed by a one-year unsecured bridge priced at Libor plus 550 | bps with a 1% Libor floor; also $7 billion term loans; Barclays, RBC, MUFG, Deutsche Bank Securities Inc., DNB Markets Inc. and HSBC Securities (USA) Inc. are joint lead arrangers and bookrunners on the term loans and bridge loans; to fund its proposed exchange offer for the common stock of Allergan Inc., expected to go before Allergan shareholders on Aug. 15, 2014; Valeant is a specialty pharmaceutical company with U.S. headquarters in Bridgewater, N.J., and international headquarters in Laval, Quebec; Allergan is an Irvine, Calif.-based pharmaceutical company.
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| Roadshows
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| Started Oct. 21: ESSAR STEEL ALGOMA $625 million; Deutsche Bank, Goldman Sachs, Jefferies.
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| Oct. 27-30: ABENGOA YIELD: €200 million; BofA Merrill Lynch, Citigroup, HSBC, Santander.
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| Oct. 27 week: EVRAZ INC. NA CANADA $500 million; Citigroup, Goldman Sachs.
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| Started Oct. 28: OPTIMA SPECIALTY STEEL $300 million; Deutsche Bank, Jefferies.
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| Oct. 28-30: ARROW GLOBAL €220 million; Goldman Sachs.
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