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EG Group launches $1.6 billion equivalent dollar, euro five-year notes; pricing Friday
By Paul A. Harris
Portland, Ore., Nov. 10 – EG Group launched a $1.6 billion equivalent offering of EG Global Finance plc senior secured notes (expected B3/B-/B+) on Friday morning, according to market sources.
A $1.1 billion tranche launched with a 12% coupon at par. Final talk was 11¾% to 12%.
A €468 million tranche ($500 million equivalent) launched with an 11% coupon at par. Final talk was in the 11% area.
Final terms and allocations are expected later Friday.
Bond documents have been updated to be substantially consistent with the term loan A.
The bonds in both tranches become subject to their initial calls in two years at par plus 50% of the respective coupons.
The joint global coordinators and physical bookrunners for the Rule 144A and Regulation S offering are Barclays (left lead, billing and delivery), JPMorgan and BofA Securities.
The joint bookrunners are Deutsche Bank, Goldman Sachs, HSBC, ING, Lloyds, Morgan Stanley, Rabobank, SMBC and UBS.
Away from the bond offering, EG Group modified the structure of its big debt refinancing effort, sources say.
The company withdrew a fungible $500 million equivalent senior secured add-on term loan B due February 2028 from market.
It added a $500 million tranche of floating-rate notes (50% pay in kind) due November 2028 to be priced at SOFR plus 750 bps with an original issue discount of 97, which is to be privately placed with two high-quality investors.
The revamped deal also includes a $200 million bridge loan.
Proceeds will be used to partially refinance the company’s remaining 2025 and 2026 debt maturities, and the bridge loan will reduce $200 million of the company’s 2025 tranche A stub.
EG Group is a Blackburn, U.K.-based convenience retail and fuel station company.
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