High Yield Calendar: $1.8 billion and €685 million deals being marketed

Nov. 16 Week

NRG ENERGY INC.: $1.465 billion senior notes (expected ratings Ba2/BB+) 10.25-year notes callable after 5.25 years at par plus 50% of the coupon, initial guidance 4%, and 8.25-year notes callable after 3.25 years at par plus 50% of the coupon, initial guidance 25 bps inside of 10.25-year notes, Citigroup (left active books), Credit Suisse (joint active books), Barclays, BofA, BMO, BNP Paribas, Credit Agricole, Deutsche Bank, Goldman Sachs, JPMorgan, Mizuho, Morgan Stanley, MUFG, RBC, SMBC, Truist (joint bookrunners), Natixis (senior co-manager), KeyBanc (co-manager); Rule 144A and Regulation S for life; also $1.465 billion two-part senior secured notes (Baa3/BBB-) including seven-year notes to be issued under NRG’s sustainability linked bond framework, and five-year notes; Credit Suisse (left active books), Citigroup (joint active books); proceeds, together with cash on hand, to fund the Direct Energy acquisition and cover a portion of its incremental collateral needs; also ALEXANDER FUNDING TRUST $900 million three-year pre capitalized trust securities (Baa3/BBB-); Credit Suisse (left active books), Citigroup (joint active books); Rule 144A and Regulation S; make-whole call, otherwise non-callable; to purchase required amount of eligible Treasury assets (NRG will not receive direct proceeds); power company with headquarters in Princeton, N.J., and Houston; investor calls Monday and Tuesday; pricing Tuesday.

CP ATLAS BUYER, INC. also known as AMERICAN BATH GROUP: $335 million eight-year senior notes (Caa2/CCC+); RBC (left lead), non-callable for three years; to support LBO by Centerbridge Partners; Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers; roadshow Nov. 17-19; initial guidance 8% area; pricing late in Nov. 16 week.

IPD 3 BV (INFOPRO DIGITAL) €685 million two-part five-year senior secured notes (expected ratings B3/B-): fixed-rate notes with two years of call protection and floating-rate notes with one year of call protection; JPMorgan (global coordinator, bookrunner, bill and deliver), BNP Paribas (global coordinator, bookrunner), BofA, Deutsche Bank, SG (bookrunners); Rule 144A and Regulation S; to refinance debt; London-based B2B media and business information services provider; roadshow through Nov. 18.

On The Horizon

ADTALEM: $1.65 billion first-lien term loan/senior secured notes; Morgan Stanley; also $400 million revolver; to help fund its acquisition of Walden University from Laureate Education Inc., expected to close first quarter of fiscal year 2022; Adtalem is a Chicago-based workforce solutions provider. Walden University is an online health care education provider.

CINCINNATI BELL INC.: $493 million senior bridge loans, commitment from Goldman Sachs; also $1.6 billion credit facilities via Goldman Sachs, Regions, SG; to help fund acquisition of Cincinnati Bell by Macquarie Infrastructure Partners in transaction valued at $2.9 billion, expected to close first half of 2021; Cincinnati-based provider of integrated communications solutions; details from March 19 PRER14A filed with SEC.

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.

EMPIRE RESORTS INC.: $475 million senior secured notes (B+/B+); BNP Paribas (joint books, bill and deliver), Citigroup, DBS Bank; Rule 144A and Regulation S; non-callable for two years; to enhance liquidity; Monticello, N.Y.-based gaming, lodging and entertainment company indirectly owned by Malaysia-based Kien Huat Realty III Ltd. (51%) and Genting Malaysia Bhd. (49%).

PROVIDENCE SERVICE CORP.: $600 million 364-day senior unsecured bridge term loan at Libor plus 525 bps, 1% Libor floor, rate increases by 50 bps every three months up to specified cap, to be replaced with high yield debt possibly including senior notes, revolver, term loans, bridge loans or any combination; also $30 million five-year revolver; debt commitment from Jefferies and Deutsche Bank; to help fund acquisition of Simplura Health Group; Providence is an Atlanta-based manager of non-emergency medical transportation programs disclosed in Sept. 29 8-K.

VIRTUSA CORP.: $300 million unsecured notes; also $725 million of senior secured credit facilities; BofA, Barclays, Goldman Sachs, Deutsche Bank, HSBC and Nomura provided the debt commitment; to help fund acquisition of the company by Baring Private Equity Asia in a transaction valued at approximately $2 billion, expected to close during first half of 2021; Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services; disclosed in Oct. 7 PREM14A filed with the SEC.

Roadshows

Nov. 17-19: AMERICAN BATH GROUP: $335 million; RBC

Through Nov. 19: INFOPRO DIGITAL €685 million; JPMorgan

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