Refinitiv changes U.S. and euro term loan discounts to 99.75

By Sara Rosenberg

New York, Sept. 18 – Refinitiv tightened the original issue discount on its $6.5 billion seven-year covenant-light term loan B and $2.75 billion equivalent euro seven-year covenant-light term loan B to 99.75 from revised talk in the 99.5 area and initial talk in the range of 99 to 99.5, according to a market source.

Also, while pricing on the U.S. term loan remained at Libor plus 375 basis points and pricing on the euro term loan remained at Euribor plus 400 bps, both tranches saw the addition of a 25 bps step-down at 3.75 times net first-lien leverage, the source said.

The U.S. term loan still has no Libor floor, the euro term loan still has a 0% floor and both loans still have 101 soft call protection for six months.

Previously in syndication, the U.S. term loan was upsized from $5.5 billion and pricing was reduced from talk in the range of Libor plus 400 bps to 425 bps, and the euro term loan was upsized from $2.5 billion equivalent and the spread was cut from Euribor plus 425 bps.

The company’s $10 billion equivalent of credit facilities also include a $750 million revolver.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Sumitomo are the lead arrangers on the deal.

Proceeds will be used to help fund the acquisition by Blackstone, Canada Pension Plan Investment Board and GIC of a 55% stake in Thomson Reuters’ Financial & Risk business, which will be renamed Refinitiv.

Other funds for the transaction will come from $4.25 billion equivalent of bonds, which were downsized from $5.5 billion equivalent with the recent upsizing of the term loans.

Thomson Reuters will receive about $17 billion in gross proceeds when the transaction closes, subject to purchase price adjustments, and will retain a 45% equity stake in the company.

Closing is expected on Oct. 1.

Refinitiv is a data and financial technology platform.

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