High Yield Calendar: $400 million deals being marketed

March 25 Week

SURGERY PARTNERS, INC.: $430 million senior notes due 2027; Jefferies (lead left books), KKR, Macquarie (joint books); Rule 144A for life and Regulation S; callable after three years at par plus 50% of coupon; 40% equity clawback at par plus coupon during non-call period; proceeds, together with cash on the balance sheet, to redeem all of the outstanding 8 7/8% senior notes due 2021; Nashville-based health care services company; roadshow starts Tuesday; pricing March 25 week.

REALOGY GROUP LLC (REALOGY HOLDINGS CORP.): $400 million senior notes due 2027; JPMorgan; Rule 144A and Regulation S; non-callable for three years; to pay down revolver; Madison, N.J.-based real estate services company; initial guidance mid-to-high 9% area; pricing expected Wednesday.

KODIAK GAS SERVICES LLC: $400 million eight-year senior notes (Caa1/B-/B); JPMorgan, Barclays, Fifth Third, PNC; Rule 144A and Regulation S; non-callable for three years; to pay down revolver; Montgomery, Tex.-based services provider to the oil and gas industry; expected to price March 22 but moved into March 25 week.

LINCOLN FINANCING SARL (LEASEPLAN): €1.35 billion two-part five-year senior secured notes (B1/BB+/BB-) in tranches of fixed-rate notes, callable after one year at par plus 50% of coupon, and floating-rate notes callable after 1.5 years at par, tranche sizes to be determined; Deutsche Bank (left global coordinator, bill and deliver), JPMorgan (joint global coordinator), UBS, Goldman Sachs (joint books); Rule 144A and Regulation S for life; proceeds, together with cash on hand, to fully redeem existing notes, to fund the interest reserve account with 2.5 years of interest expense on new notes, and for general corporate purposes; Amsterdam-based provider of automobile leasing and fleet management services; roadshow started March 25.

BANCO MONTEPIO: Benchmark 10-year tier 2 subordinated notes (Caa2//B-/B high); BNP Paribas, BofA Merrill Lynch (joint lead managers); Regulation S only; non-callable for five years; Lisbon-based financial institution; roadshow started March 19.

DDM HOLDING AG via DDM DEBT AB: Euro-denominated three-year secured notes; Arctic Securities AS and ABG Sundal Collier ASA; Stockholm-based investment services provider; investor meetings start March 20.

March 25 Week

STAPLES, INC.: $750 million secured notes and $1.375 billion unsecured notes, Goldman Sachs lead left; also $3.2 billion term loans via lead left UBS, plus Goldman Sachs, BofA, Barclays, Credit Suisse, Deutsche Bank, Jeffries, KKR, Morgan Stanley and RBC; to refinance debt including $1 billion of unsecured bonds to be redeemed by means of the make-whole provision; Farmingham, Mass.-based business supplies distributor; kickoff expected April 1 week.

Expected Late March/Early April Business

ALLSISON TRANSMISSION INC.: $500 million senior notes due 2029 (expected ratings Ba3/BB); Citigroup; to repay bank debt (also in the market with $648 million term loan, commitments due March 26); Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems; early expectations have the notes pricing to yield in the low 6% area; expected late March/early April business.

High Yield Bridges

BERRY GLOBAL GROUP INC.: €1.5 billion one-year first-lien bridge expected at Euribor plus 325 bps and £300 million one-year first-lien bridge expected at Libor plus 400 bps 50 bps step-ups every three months up to a specified cap, also $1,275,000,000 one-year second-lien bridge expected at Libor plus 375 bps, 50 bps step-ups every three months up to a specified cap; Goldman Sachs (administrative agent on first-lien tranches) and Wells Fargo (agent on the second-lien tranche); to fund the acquisition of U.K.-based plastic and recycled products provider RPC Group plc, expected to close early in fourth quarter 2019; Berry is an Evansville, Ind.-based supplier of a non-woven, flexible and rigid products used within consumer and industrial end markets.

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.

INMARSAT: Up to $1,125,000,000 senior notes backed by bridge loan (Libor plus 425 bps, 0% Libor floor, spread increases 50 bps every three months up to specified cap, BofA administrative agent) and $3.3 billion credit facilities (Barclays administrative agent); Barclays, BofA, UBS are global coordinators on the debt; to help fund the acquisition of Inmarsat by Apax, Warburg Pincus, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board for about $3.4 billion, expected to close in fourth quarter of 2019; London-based satellite telecommunications company; details in March 25 press release.

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.

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.

On The Horizon

CALPINE CORP.: $1.4 billion bonds and $600 million bank loan; to fund capital expenditures related to the Geysers geothermal renewable energy project in northern California; San Jose, Calif.-based power generator; heard Dec. 11, 2018 from market sources.

DIAMONDBACK ENERGY 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.

E.W. SCRIPPS: $1.85 billion term loans and unsecured debt ($525 million term loan to launch March 26); Morgan Stanley, Wells Fargo Securities LLC; to fund acquisition of eight TV stations in seven markets from the Nexstar Media Group Inc.-Tribune Media merger divestitures; Cincinnati-based broadcasting and digital media company.

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.

NEXSTAR MEDIA GROUP INC. New bonds and loan to fund the cash consideration of its acquisition of Tribune Media Co., expected to close in the third quarter of 2019; BofA Merrill Lynch, Credit Suisse and Deutsche Bank committed to $6.4 billion financing; Nexstar is an Irving, Tex.-based diversified media company; Tribune is a Chicago-based owner of television and digital properties; disclosed in Dec. 3 8-K.

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%.

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

Started March 25: LEASEPLAN €1.35 billion; Deutsche Bank, JPMorgan.

Starts March 26: SURGERY PARTNERS $430 million; Jefferies, KKR, Macquarie.

Pricing expected March 27: REALOGY $400 million; JPMorgan.

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