High Yield Calendar: $1.94 billion and €1.02 billion notes being marketed

September 23 Week

SHUTTERFLY INC., prior to merger PHOTO HOLDINGS MERGER SUB, INC.: $785 million seven-year senior secured notes (B1/B) upsized from $500 million with equivalent downsize of the term loan; Citigroup (lead left books), Barclays, SunTrust, Credit Suisse, BMO, BNP Paribas, Deutsche Bank, HSBC, RBC, Mizuho, UBS (joint books); Rule 144A and Regulation S for life; callable after three years at par plus 50% of coupon; 40% equity clawback; to fund the buyout of Shutterfly and Snapfish by Apollo Global Management LLC; Redwood City, Calif.-based retailer and manufacturing platform for personalized products and communications; roadshow Sept. 17-20; price talk 8¼% to 8½%, also covenant changes (initial talk low-to-mid 7% area); pricing Tuesday.

CALUMET SPECIALTY PRODUCTS PARTNERS, LP and CALUMET FINANCE CORP.: $550 million senior notes due April 2025 (Caa1/B-/B-); Barclays (left lead books), BofA, Wells Fargo, BMO (joint books), Deutsche Bank, JPMorgan, BBVA, Regions, US Bancorp, Goldman Sachs, Guggenheim, Seaport (co's); Rule 144A for life; callable after two years at par plus 50% of coupon; proceeds, together with revolver borrowings and cash on hand, to redeem all of Calumet’s outstanding 2021 notes; producer of specialty hydrocarbon products; roadshow Sept. 23-26, pricing thereafter.

GRANITE US HOLDINGS CORP. (HOWDEN): $300 million eight-year senior notes (Caa1); JPMorgan, Barclays, BNP Paribas, HSBC, RBC (joint); Rule 144A and Regulation S for life; callable after three years at par plus 50% of coupon; to fund the acquisition of Howden, the Glasgow, Scotland-based air and gas handling business of Colfax Corp., by KPS Capital Partners; roadshow started Sept. 16; guidance widened to 10¾% to 11% from initial guidance 10% area; pricing expected Sept. 23 week.

STELCO HOLDINGS INC. via STELCO INC.: $300 million senior secured notes due 2024; JPMorgan; private; non-callable for two years; for capital expenditures and general corporate purposes, which may include potential acquisitions, joint ventures and strategic alliances or distributions to the company; Hamilton, Ont.-based steelmaker; initial talk 9% area.

CABB GROUP: €640 million three-part offer: MONTICHEM HOLDCO 3 SA 5.5-year senior secured fixed-rate notes with two years of call protection, MONTICHEM HOLDCO 2 SA 5.5-year senior secured floating-rate notes with one year of call protection, and MONTICHEM HOLDCO 2 SA seven-year senior unsecured notes with three years of call protection; proceeds, together with cash on balance sheet, to redeem existing notes in full, and repay bank debt; Sulzbach, Germany specialty chemicals company; roadshow Sept. 23 week.

LHMC FINCO 2 (CIRSA GAMING CORP. SA): €375 million six-year PIK toggle notes (S&P: CCC+); callable after 1.5 years at 102; to fund a distribution by shareholders; Madrid-based gaming and leisure company; roadshow Sept. 23 week.

Expected Post-Labor Day Business

CENTENE CORP.: $8.35 billion senior unsecured bridge loan; Barclays; to help fund acquisition of WellCare Health Plans Inc., expected to close in first half of 2020; Centene is a St. Louis-based provider of services to government sponsored and commercial health care programs; WellCare is a Tampa, Fla.-based provider of government-sponsored managed care services; a portion of the bridge expected to be taken out with bonds, in possible post-Labor Day transaction.

FXI/INNOCOR: Expected $775 million bonds backing merger expected to close during second half of 2019; Jefferies advised FXI, Barclays (expected joint books) advised Innocor; FXI, based in Media, Pa., and Innocor, Inc., based in Red Bank, N.J., produce polyurethane foam products; expected post-Labor Day business.

PRESIDIO INC.: $1,775,000,000 high-yield bonds and bank loans, includes $400 million of senior notes or an unsecured bridge facility and $1,375,000 of senior secured credit facilities; Citigroup, JPMorgan, RBC, BofA, MUFG; to help fund the buyout of Presidio by BC Partners; New York-based IT solutions provider; expected late September or early October business.

ZAYO GROUP HOLDINGS INC.: $2.775 billion senior unsecured bridge loan and $6.74 billion senior secured credit facilities; debt commitment from Credit Suisse, Morgan Stanley, Citigroup, Deutsche Bank, SunTrust, TD; to help fund LBO by Digital Colony Partners and the EQT Infrastructure IV fund, expected to close in the first half of 2020; Boulder, Colo.-based provider of mission-critical bandwidth to companies; possible post-Labor Day business.

High Yield Bridges

ELANCO ANIMAL HEALTH INC.: $2.75 billion bridge loans and $3.75 billion credit facilities, debt commitment from Goldman Sachs; to help fund its acquisition of Bayer AG’s animal health business, targeted to close in mid-2020; Greenfield, Ind.-based animal health company; disclosed in 8-K document filed Aug. 20 with SEC.

ELDORADO RESORTS INC.: $1.8 billion senior notes due 2028 backed by bridge loan, via JPMorgan, Credit Suisse, Macquarie, priced at Libor plus 475 bps with a 0% Libor floor, spread increases by 50 bps every three months until a specified cap is reached; also $4 billion credit facilities, debt commitment from JPMorgan, Credit Suisse, Macquarie; to help fund its acquisition of Caesars Entertainment Corp.; Eldorado is a Reno, Nev.-based gaming company, expected to close in first half of 2020; Caesars is a Las Vegas-based gaming and entertainment company.

PENN NATIONAL GAMING INC.: $840 million senior unsecured bridge loan, also $1.14 billion in incremental senior secured term loans; debt commitment from BofA Securities, 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.

UGI ENERGY SERVICES LLC: $700 million bridge facility; Credit Suisse; to help fund its acquisition of Columbia Midstream Group LLC for about for about $1.28 billion, expected to close in fourth fiscal quarter of 2019; UGI is a King of Prussia, Pa.-based distributor and marketer of energy products and services; information disclosed in July 3, 2019 press release.

VICI PROPERTIES 1 LLC: $4,763,125,000 of bridge loans; Deutsche Bank; company intends to issue senior unsecured notes, obtain term loans, potentially in the form of an incremental term loan, and/or sell equity securities; to fund the acquisition of land and real estate assets associated with Harrah’s New Orleans, Harrah’s Laughlin, and Harrah’s Atlantic City and modify certain provisions of the existing Caesars Entertainment Corp.; New York-based experiential real estate investment trust; disclosed in June 24 8-K filed with SEC.

WESCO AIRCRAFT HOLDINGS INC. $1,375,000,000 bridge loans: $800 million senior secured bridge loan and $575 million senior unsecured bridge loan; also $1,175,000,000 of senior secured credit facilities; BofA provided debt commitment; to help fund buyout of Wesco Aircraft by Platinum Equity; high-yield bonds to replace bridge expected in third or fourth quarter of 2019.

WINNEBAGO INDUSTRIES INC.: $290 million bridge via Goldman Sachs, Bank of Montreal, BMO, expected to be taken out by means of five-year senior secured notes, non-callable for two years; initial bridge rate Libor plus 650 bps, subject to 50 bps step-up after 90 days, with additional 50 bps for each additional 90 days thereafter subject to a bridge cap; to finance acquisition of acquisition of Newmar Corp., expected to close by Jan. 31, 2020; Winnebago is a Forest City, Iowa-based manufacturer of recreational vehicles; disclosed in Sept. 16 8-K filing.

On The Horizon

ALPHA AUTO GROUP: $225 million five-year notes; JPMorgan; non-callable for two years; automotive group operates dealerships representing 14 automotive brands throughout Ontario, Alberta and Oregon.

ATLANTICA TENDER DRILLING LTD.: $140 million four-year second-lien notes; DNB, Pareto (global coordinators), Danske, SpareBank1 (joint books); also $100 million four-year first-lien term loan; to refinance bank and bond debt; Houston-based oil and gas drilling services provider; deal subject to market conditions, pre-marketing mid-to-late May.

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.

DDM HOLDING AG via DDM DEBT AB: €100 million three-year secured floating-rate notes; Arctic Securities AS and ABG Sundal Collier ASA (joint lead managers); Stockholm-based investment services provider.

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 is financial adviser to Diamondback, JPMorgan and Tudor Pickering Holt are exclusive financial advisers to Energen.

OBSIDIAN ENERGY LTD.: $100 million five-year senior notes; Pareto; to refinance Obsidian Energy’s existing $48 million secured notes maturing between 2020 to 2025 and for general corporate purposes; Calgary, Alta.-based oil and natural gas production company.

QMAX FINANCIAL HOLDINGS INC. (Q'MAX SOLUTIONS INC.): $225 million secured notes due 2024 (Caa2/B-); Pareto; Rule 144A and Regulation S; callable after two years at par plus 50% of coupon; two-year 35% equity clawback at par plus coupon; to help fund the upcoming acquisition of Mountain Mud, repay debt and buy out certain existing equipment leases; Houston-based multi-national oilfield services provider; roadshow mid-to-late May.

Roadshows

Sept. 23-26: CALUMET SPECIALTY $550 million; Barclays.

Sept. 23 week: CIRSA €375 million.

Sept. 23 week: CABB €640 million.

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