High Yield Calendar: $900 million and €300 million deals being marketed

October 15 Week

NINE ENERGY SERVICE, INC. $400 million senior notes due 2023 (B3/B); J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC (joint); Rule 144A for life; non-callable for two years; proceeds, together with cash on hand and borrowings under a new credit facility to help fund acquisition of Magnum Oil Tools International, Ltd., pay off Magnum's term loan and revolver; Houston-based oilfield services company; roadshow Oct. 15-19; initial talk 9% area; pricing Oct. 19.

JBS SA via JBS INVESTMENTS II GMBH: $500 million senior notes due January 2026 (expected ratings Ba3/BB-/BB-); Barclays (joint books, bill and deliver), BB Securities, Bradesco BBI, BTG Pactual, Santander (joint books); Rule 144A and Regulation S; callable after three years at par plus 50% of coupon; to refinance the 7¾% senior notes due 2020 and general corporate purposes; Brazil-based meat processing company; investor meetings started Oct. 15; initial price talk low-to-mid 7% area; pricing as early as Thursday.

UGI INTERNATIONAL, a subsidiary of UGI CORP.: €300 million senior notes due 2025 (Ba1//BB+); BNP Paribas (global coordinator, physical books, bill and deliver), HSBC (global coordinator, joint books), Credit Agricole, ING, Mediobanca, Natixis, SG CIB (joint books), Barclays, RBI (co's); Rule 144A and Regulation S; non-callable for three years; to pay off existing credit facilities; European distributor and marketer of energy products, primarily LPG, a subsidiary of King of Prussia, Pa.-based UGI Corp.; roadshow through Oct. 18, pricing thereafter; initial price talk 3¼% to 3½%.

Private Placement

UBER TECHNOLOGIES INC. $2 billion notes, increased from $1.5 billion: $500 million five-year notes, non-callable for two years, initial talk 7½%, and $1 billion eight-year notes, non-callable for three years, initial talk 8% area; Morgan Stanley & Co. LLC, placement agent; private placement; peer-to-peer ridesharing, taxi cab, food delivery, bicycle-sharing, and transportation network company based in San Francisco; expected to allocate Oct. 17, and possibly begin trading under a Rule 144A Cusip number on Oct. 18.

Expected October Business

UNITED RENTALS (NORTH AMERICA) INC.: $1.1 billion senior notes (Ba3); also $1 billion term loan via BofA Merrill Lynch, Wells Fargo, Citigroup, Morgan Stanley, Barclays, Deutsche Bank, J.P. Morgan, Bank of Nova Scotia, MUFG, commitments were due Oct. 5; to help fund the acquisition of BlueLine Rentals from Platinum Equity for about $2.1 billion in cash, expected to close fourth quarter of 2018; bonds are expected October business.

High Yield Bridges

DUN & BRADSTREET CORP. $1.05 billion bridge loans: $200 million senior secured 364-day bridge loan and $850 million senior unsecured bridge loan; also $3.53 billion of senior secured credit facilities; BofA Merrill Lynch, Citigroup, RBC; to fund the acquisition of Dun & Bradstreet by an investor group led by CC Capital, Cannae Holdings and Thomas H. Lee Partners LP; Short Hills, N.J.-based provider of commercial data and analytics; announced in Aug. 9 8-K filed with the Securities and Exchange Commission, acquisition expected to close within six months.

FOREST CITY REALTY TRUST INC.: $2.6 billion bridge loan and $1.6 billion credit facilities; BofA Merrill Lynch, Barclays, BMO, Citigroup, Deutsche Bank, RBC and TD are the leads on the financing; to help fund its acquisition by Brookfield Asset Management Inc., expected to close in fourth quarter of 2018; Forest City is a Cleveland-based real estate company; financing announced in July 31 8-K.

Nordic Deals

VERITAS PETROLEUM BV: Possible fixed income transaction; Arctic Securities AS and ABG Sundal Collier ASA to arrange investor meetings beginning Sept. 3; fuel testing and inspection services company based in Barendrecht, the Netherlands; announced Aug. 30.

WOW AIR: Euro-denominated or Swedish krona-denominated three-year floating-rate senior secured notes; Pareto; proceeds to be used as bridge loan to IPO; Reykjavik, Iceland-based low-cost air carrier; expected late-summer, early fall business.

APC HOLDCO APS (APC FORSIKRINGSMAEGLERE A/S): Up to €42 million four-year senior secured notes; Pareto; make-whole call first two years, then callable at 101; to help fund purchase price for the shares in APC, refinance existing debt and general corporate purposes; Copenhagen-based pension broker; books opened Oct. 1.

On The Horizon

DIAMONDBACK ENEGY INC.: Expected high-yield notes; to help fund $9.2 billion acquisition of Energen Corp., expected to close in fourth quarter 2018; Citigroup Global Markets Inc. is financial adviser to Diamondback, J.P. Morgan Securities LLC and Tudor Pickering Holt are exclusive financial advisers to Energen.

GENERAL ELECTRIC DISTRIBUTED POWER: $600 million high-yield bonds; to help fund the acquisition of General Electric’s Distributed Power business for $3.25 billion by private equity investor Advent International, expected to close in fourth quarter of 2018; provider of gas engines, power equipment and services focused on power generation and gas compression; debt capital markets transactions expected in third quarter of 2018.

GETTY IMAGES INC.: Possible new notes, loans and preferred equity; to refinance its balance sheet in connection with its acquisition by the Getty family from the Carlyle Group; visual communications company.

GFL ENVIRONMENTAL INC.: $1.6 billion senior notes and incremental term loan B, sizes to be determined; Barclays to lead loan, banks committed to the financing also include BMO Capital Markets Corp. and RBC Capital Markets; to help fund its merger with Waste Industries, BC Partners and other equity investors will provide additional equity; GFL is a Toronto-based environmental services company; bank meeting Oct. 15 week.

PENN NATIONAL GAMING INC.: $840 million senior unsecured bridge loan, also $1.14 billion in incremental senior secured term loans; debt commitment from Bank of America Merrill Lynch, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Wells Fargo Securities LLC, Citizens Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC; to finance the acquisition of Pinnacle Entertainment Inc., expected to close in the second half of 2018; Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations; Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

STARWOOD PROPERTY TRUST, INC.: $300 million senior notes due August 2023 (Ba3/BB); Credit Suisse Securities (USA) LLC (left books), Citigroup Global Markets Inc. (joint books); Rule 144A and Regulation S with registration rights; par call 90 days prior to maturity, otherwise non-callable; three-year 40% equity clawback; 101% poison put; to repay secured debt and support purchase of GE Energy Project Finance debt business; commercial mortgage REIT; investor call Aug 14; initial guidance 5% to 5 1/8%.

T-MOBILE USA INC.: $27 billion bridge loans to be replaced with secured notes, unsecured notes or other financing in connection with merger of T-Mobile and Sprint Corp.: $19 billion 364-day senior secured covenant-light bridge facility (low triple B ratings expected) and $8 billion one-year senior unsecured covenant-light bridge facility ($4 billion expected to convert into eight-year debt, and $4 billion expected to convert to 10-year debt) (mid-to-high double B ratings expected), also $11 billion credit facilities; Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and RBC Capital Markets, joint lead arrangers and bookrunners on the debt (Goldman Sachs agent on the secured bridge, agent for unsecured bridge not named in the commitment letter); to refinance certain T-Mobile and Sprint debt, and for post-closing working capital for combined company; combined company will be called T-Mobile and will be based in Bellevue, Wash.; announced in April 30 8-K filing with Securities & Exchange Commission.

TWINSET SPA: €170 million five-year senior secured floating-rate notes; private; to redeem the €150 million senior Euribor plus 587.5 bps secured floating rate notes due 2019, partially repay a shareholder loan and cancel the existing hedging arrangement; Capri, Italy-based supplier of luxury women's apparel and accessories.

Roadshows

Through Oct. 18: UGI INTERNATIONAL €300 million; BNP Paribas, HSBC, Credit Agricole, ING, Mediobanca, Natixis, SG.

Oct. 15-19: NINE ENERGY SERVICE $400 million; JPMorgan, Wells Fargo, Goldman Sachs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.