DTZ launches $1.8 billion first-lien term loan at Libor plus 375 bps

By Sara Rosenberg

New York, July 29 – DTZ (DTZ U.S. Borrower LLC and DTZ Aus HoldCo Pty Ltd.) launched on Wednesday its $1,805,000,000 first-lien term loan due Nov. 4, 2021 with talk of Libor plus 375 basis points with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Of the total term loan amount, $1,055,000,000 is incremental debt that will be used to fund the acquisition of Cushman & Wakefield, and the remainder will be used to reprice the company’s existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

The incremental term loan is talked with an original issue discount of 99.5, the source said.

UBS AG, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are the bookrunners on the deal.

In addition, the company plans to get a $175 million incremental multi-currency revolver due Nov. 4, 2019, bringing the total revolver size to $375 million.

Commitments are due on Aug. 12, the source added.

Closing is expected by year-end, subject to customary conditions.

The company’s sponsors are TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.

DTZ is a Chicago-based property services company. Cushman & Wakefield is a New York-based real estate services company. The combined company will operate under the Cushman & Wakefield brand.

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