EG Group sets official talk on upsized, rejiggered €1.64 billion three-part secured notes offering

By Paul A. Harris

Portland, Ore., May 1 – Filling station operator EG Group set official price talk on its upsized €1.64 billion offering of senior secured notes (B2/B/B+) on Wednesday, according to market sources.

The deal, which is upsized from €1,355,000,000, comes in three tranches, with a tranche of shorter maturity euro-denominated notes added to what had previously been a two-part deal in dollars and euros.

The revamped deal features an expected €970 million amount of notes in two tranches: notes due 2024 with 1.5 years of call protection (the added tranche) talked to yield 3¾% to 4%, versus initial talk in the 4% area, and notes due February 2025 with two years of call protection, talked in the 4½% area versus initial talk in the 4¾% area; early guidance on the euro-denominated notes due 2025 was in the 5% area. The split between the 2024 notes and the 2025 euro-denominated notes remains to be determined.

In addition, EG Group is offering an expected $750 million of notes due February 2025 with two years of call protection, talked to yield 6¾% to 7% versus initial talk in the 7% area; early guidance on the dollar-denominated notes was in the low 7% area.

Books close at 5 p.m. ET on Wednesday for accounts in the United States, with the exception of those accounts with roadshow meetings on Wednesday. For those accounts, as well as for accounts in Europe, books remain open into early Thursday morning.

The Rule 144A and Regulation S for life deal is expected to price on Thursday.

Left global coordinator Barclays will bill and deliver. Deutsche Bank and UBS are also joint global coordinators. ING is the joint bookrunner.

The Blackburn, U.K.-based company plans to use the proceeds, including the additional proceeds resulting from the €285 million upsizing of the deal, to repay new dollar- and euro-denominated bridge facilities, to pay off its revolving credit facility and to make partial pro rata payments on its dollar- and euro-denominated second-lien term loans.

The corporate sponsor is TDR Capital.

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