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Published on 9/13/2023 in the Prospect News High Yield Daily.

High Yield Calendar: $5.4 billion in the market

September 11 Week

BAUSCH + LOMB ESCROW CORP. (BAUSCH + LOMB CORP.): $1.4 billion senior secured notes due 2028 (B1/B-/BB); Rule 144A and Regulation S; non-callable for two years; JPMorgan; proceeds plus $500 million term loan to finance acquisition of Xiidra (lifitegrast ophthalmic solution) 5%, and certain other ophthalmological assets, and for general corporate purposes which may include debt repayment; Vaughan, Ont.-based producer of eye care and ophthalmological products and instruments; pricing Thursday; price talk 8½% area (initial guidance high-8% area).

FREEDOM MORTGAGE CORP.: $600 million five-year senior notes (B2/B/B+); Rule 144A and Regulation S; first call in two years at par plus 50% of coupon; JPMorgan, Barclays, BofA, KeyBanc, Morgan Stanley; Nomura, Wells Fargo (joint); to redeem 8 1/8% senior notes due November 2024 and 8¼% senior notes due April 2025; Mount Laurel, N.J.-based mortgage lender; pricing expected Thursday (timing accelerated: deal had been expected to remain in the market until Friday); price talk 12% to 12¼% coupon at 98 to yield 12½% to 12.8% (initial talk 12¼% coupon at 98 to yield about 12½%).

STAR PARENT, INC. (SYNEOS HEALTH INC.): $1.7 billion senior secured notes due 2030 (B1/B); Rule 144A and Regulation S for life; first call in three years at par plus 50% of coupon (special call allows issuer to redeem 10% of notes annually at 103 during the non-call period); Goldman Sachs; to help fund buyout by Elliott Investment Management, Patient Square Capital and Veritas Capital; Morrisville, N.C., biopharmaceutical solutions organization; roadshow Sept. 11-13; initial talk 9% area.

INTERNATIONAL PETROLEUM CORP.: $200 million add-on to 7¼% senior notes due 2027; Arctic, Pareto; for general corporate purposes; Vancouver, B.C.-based oil and gas exploration and production company; investor meetings announced Sept. 11.

WORLDPAY: $4 billion equivalent senior secured notes in dollar- and euro-denominated notes; Goldman Sachs, JPMorgan; proceeds plus dollar- and euro-denominated bank debt to help fund buyout by GTCR of a majority stake in the company from Fidelity National Information Services Inc. (FIS), expected to close first quarter of 2024; provider of payment processing solutions; possible business for Sept. 11 week.

September 11 Week

VITAL ENERGY, INC.: $800 million two-part senior notes (B3/B): $300 million add-on to 10 1/8% senior notes due 2028, currently callable at 107.594, also $500 million new senior notes due 2030, callable after three years at par plus 50% of coupon; SEC registered; Wells Fargo (left books), BofA, Mizuho, Truist, Capital One, Citigroup, KeyBanc, PNC, US Bancorp (joint books), Amegy, BOKF, Comerica (co’s); to refinance 9½% senior notes due 2025, to pay down borrowings on the RBL and for general corporate purposes (if planned acquisition of Henry Energy and Henry Resources is not consummated on or prior to the Jan. 11, 2024 the new seven-year notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price of the notes, plus accrued and unpaid interest); Tulsa, Okla.-based independent energy company; investor call Sept. 14 at 11:30 a.m. ET; pricing expected Sept. 19.

VIASAT INC.: $733.4 million senior notes due May 30, 2031 (Caa1/B/BB-); Rule 144A and Regulation S; first call May 30, 2026 at par plus 50% of coupon; JPMorgan, BofA, Barclays, Credit Suisse, MUFG, Truist, Citizens; to repay bridge loan that was drawn to fund acquisition of Inmarsat, closed May 31, 2023; Carlsbad, Calif.-based Viasat and London-based Inmarsat are satellite telecommunications companies; roadshow started Sept. 13; pricing expected late Sept. 18 week; initial guidance 7½% coupon at a discount to yield 14%.

September / Fourth Quarter Business

ABERCROMBIE & FITCH CO.: New debt to refinance $300 million Abercrombie & Fitch Management Co. 8¾% senior secured notes due July 2025; JPMorgan; New Albany, Ohio-based specialty retailer; possible September/fourth-quarter business

NCR CORP.: New debt financing to support the spinoff of its ATM and digital commerce businesses, expected to close during 2023 fourth quarter; Atlanta-based supplier of technology for banks, retailers, restaurants, small businesses

CAESARS ENTERTAINMENT INC.: New debt to refinance CRC Escrow Issuer, LLC/CRC Finco, Inc. 5¼% senior notes due October 2025; Reno, Nev.-based hotel and casino entertainment company; possible September business

UBER TECHNOLOGIES, INC.: New debt to refinance $1 billion 7½% senior notes due May 2025, presently callable at 101.875; San Francisco transportation conglomerate; possible 2023 fourth-quarter business

On The Horizon

ACURIS FINANCE US, INC. and ACURIS FINANCE SARL, doing business as ION ANALYTICS: $850 million equivalent eight-year senior secured notes (expected ratings B2/B) in tranches of dollar-denominated notes, price talk 6% area (initial talk low-to-mid 6% area), and euro-denominated notes, price talk 4¾% area (initial talk mid-to-high 4% area) tranche sizes to be determined (expected $500 million and $350 million equivalent euro); UBS (left books), BNP Paribas (joint books); Rule 144A and Regulation S for life; notes in both tranches callable after two years at par plus 50% of respective coupons; to refinance debt incurred in the Backstop acquisition, to fund a dividend for repurchase of shares from certain minority shareholders in one or more parent companies, to partially prepay amounts drawn under the credit facility and for general corporate purposes; London-based market analytics and data provider (delayed as of Jan. 28, 2022)

CONNECT HOLDING II LLC (BRIGHTSPEED): $1.865 billion senior secured notes; to support the carve-out acquisition of Lumen Technologies’ incumbent local exchange carrier (ILEC) assets and all associated operations across 20 states by Apollo Global Management, Inc.; Brightspeed, a broadband and telecom services provider, will be based in Charlotte, N.C.; postponed September 2022 due to market conditions

HIGHPEAK ENERGY INC.: $575 million senior notes due 2028; Rule 144A and Regulation S for life; callable after two years at par plus 50% of coupon (special call allows issuer to redeem 10% of notes at 103 during non-call period); BofA (left books), Wells Fargo, Texas Capital, Credit Suisse (joint books), Citizens, Fifth Third, U.S. Bancorp, Amarillo, Amegy, UMB, Roth (co’s); to pay off $475 million senior notes, to pay down debt under credit agreement, with remaining proceeds for general corporate purposes, which may include capital expenditures, drilling and development, and further bolt-on asset acquisitions; Fort Worth-based publicly traded independent crude oil and gas company

SOTERA HEALTH CO.: Incremental secured debt (bank or capital markets) to fund a significant portion of an agreement reached by its subsidiary, Sterigenics, to settle the more than 870 ethylene oxide cases ($408 million) pending against it in the Circuit Court of Cook County, Ill., and U.S. District Court for the Northern District of Illinois; pending settlements proceeds could be used to secure collateral needed for an appeal of the adverse judgment in the ethylene oxide litigation; Sotera is a Broadview Heights, Ohio-based provider of sterilization testing and services; Sterigenics provides outsourced sterilization and irradiation services; financing to be undertaken during first half of 2023; disclosed in 8-K document filed Jan. 10 with SEC

TEMPUR SEALY INTERNATIONAL INC.: New secured and unsecured financing to help fund its acquisition of Mattress Firm Group Inc. for approximately $2.7 billion, expected to close during the second half of 2024, and repay Mattress Firm’s outstanding debt; JPMorgan is sole financial adviser to Tempur Sealy; Goldman Sachs, Barclays and Jefferies are financial advisers to Mattress Firm; Tempur Sealy is a Lexington, Ky.-based bedding products company; Mattress Firm is a Houston-based mattress specialty retailer; disclosed in 8-K filed May 9 with SEC

TWITTER INC. (X HOLDINGS): $3 billion one-year senior secured bridge loan and $3 billion at SOFR plus 675 bps, 0% floor, 50 bps step-ups every three months up to a specified cap, and $3 billion one-year senior unsecured bridge loan at SOFR plus 1,000 bps, 0% floor, 50 bps step-ups every three months up to a specified cap, expected to be replaced with $3 billion senior secured notes and $3 billion senior unsecured notes; proceeds plus $7 billion credit facilities to help fund acquisition of Twitter by an entity wholly owned by Elon Musk; San Francisco-based online social networking service

Bridge Loans

CACTUS WELLHEAD LLC: $375 million 364-day senior secured bridge loan with three-month extension option to be replaced by debt and/or equity; debt commitment from JPMorgan; to support acquisition of FlexSteel Technologies Holdings Inc. for approximately $621 million, expected to close in early 2023; other funds to come from cash on hand; Cactus is a Houston-based manufacturer of wellhead and pressure control equipment. FlexSteel manufactures spoolable pipe technologies used during production phases of a well’s lifecycle; details disclosed in 8-K filed Jan. 3 with SEC

CASELLA WASTE SYSTEMS INC.: $200 million 364-day unsecured bridge loan pricing SOFR+10 bps CSA plus 525 bps (spread increases by 50 bps every 90 days until it hits a cap of 675 bps), debt commitment from Raymond James, Stifel; to support its purchase of Consolidated Waste Services LLC for about $219 million in cash, closing expected fourth quarter; Casella Waste is a Rutland, Vt.-based solid waste, recycling and resource management services company; disclosed in 8-K filed June 12 with SEC

SEMTECH CORP.: $1.151 billion 364-day bridge loan to help fund its acquisition of Sierra Wireless Inc., enterprise value approximately $1.2 billion, expected to close in Semtech’s fiscal year 2023; commitment from JPMorgan; Semtech is a Camarillo, Calif.-based supplier of semiconductors and advanced algorithms; Sierra Wireless is a British Columbia-based Internet of Things solutions provider; disclosed in 8-K filed with SEC on Aug. 3.

SUMMIT MATERIALS INC.: Up to $1.3 billion senior 364-day bridge loan to fund cash consideration of its acquisition of Argos North America Corp. from Cementos Argos SA; commitment from Morgan Stanley; Argos is being purchased for about $1.2 billion in cash and around 54.7 million shares of Summit stock, valuing Argos at roughly $3.2 billion; acquisition expected in first half of 2024; Summit Materials is a Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt; Argos is a cement producer; disclosed in 8-K filed with SEC on Sept. 7.

Roadshows

Sept. 11-13: STAR PARENT/SYNEOS $1.7 billion; Goldman Sachs

Started Sept. 11: BAUSCH + LOMB $1.4 billion; JPMorgan

Started Sept. 13: FREEDOM MORTGAGE $600 million; JPMorgan

Started Sept. 13: VIASAT $733.4 million; JPMorgan

Starts Sept. 14: VITAL ENERGY $800 million; Wells Fargo


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