By Paul A. Harris
Portland, Ore., Nov. 10 – EG Group priced $1.6 billion equivalent of EG Global Finance plc five-year senior secured notes (B3/B-/B+) in two tranches on Friday, according to market sources.
A $1.1 billion tranche priced at par to yield 12%, the wide end of the 11¾% to 12% yield talk. Initial guidance was in the 11½% area.
A €468 million tranche ($500 million equivalent) priced at par to yield 11%, in the middle of yield talk that was set in the 11% area.
Bond documents have been updated to be substantially consistent with the term loan A.
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 basis points 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.
| Issuer: | EG Global Finance plc
|
| Amount: | $1.6 billion equivalent
|
| Issue: | Senior secured notes
|
| Maturity: | Nov. 30, 2028
|
| Joint bookrunners: | Barclays (lead left, bill and deliver), JPMorgan, BofA, Deutsche Bank, Goldman Sachs, HSBC, ING, Lloyds, Morgan Stanley, Rabo, SMBC and UBS
|
| Call protection: | 2.5 years
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 20
|
| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Dollar notes
|
| Amount: | $1.1 billion
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Spread: | 735 bps
|
| Price talk: | 11¾% to 12%
|
| Physical bookrunner: | Barclays
|
|
|
| Euro notes
|
| Amount: | €468 million
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 840 bps
|
| Price talk: | 11% area
|
| Physical bookrunners: | Barclays, JPMorgan and BofA
|
|
|
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