By Paul A. Harris
Portland, Ore., May 2 – Filling station operator EG Group priced an upsized and restructured €1.64 billion equivalent amount of senior secured notes (B2/B/B+) in three tranches on Thursday, according to market sources.
In a tranche added subsequent to the roadshow start, the Blackburn, U.K.-based company priced a €300 million amount of notes due Feb. 7, 2024 at par to yield 3 5/8%. The yield printed 12.5 basis points tighter than the 3¾% to 4% yield talk. Initial talk was in the 4% area.
The deal also included €670 million of notes due Feb. 7, 2025, which priced at par to yield 4 3/8%. The yield printed at the tight end of yield talk in the 4½% area. Initial price talk was in the 4¾% area. Early guidance was in the 5% area.
The sole dollar-denominated tranche came as a $750 million tranche of notes due Feb. 7, 2025, which priced at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk. Initial talk was in the 7% area. Early guidance was in the low 7% area.
The deal was upsized from €1,355,000,000 equivalent.
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.
| Issuer: | EG Global Finance plc
|
| Amount: | €1.64 billion equivalent, increased from €1.355 billion equivalent
|
| Securities: | Senior secured notes
|
| Left global coordinator: | Barclays (bill and deliver)
|
| Joint global coordinators: | Deutsche Bank and UBS
|
| Joint bookrunner: | ING
|
| Trade date: | May 2
|
| Settlement date: | May 13
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Notes due 2024
|
| Amount: | €300 million
|
| Maturity: | Feb. 7, 2024
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 407 bps
|
| First call: | Nov. 15, 2020 at 101.813
|
| Equity clawback: | 40% at 103.625 until to Nov. 15, 2020
|
| Price talk: | 3¾% to 4%
|
|
|
| Euro notes due 2025
|
| Amount: | €670 million
|
| Maturity: | Feb. 7, 2025
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 475 bps
|
| First call: | May 15, 2021 at 102.188
|
| Equity clawback: | 40% at 104.375 until May 15, 2021
|
| Price talk: | 4½% area
|
|
|
| Dollar notes due 2025
|
| Amount: | $750 million
|
| Maturity: | Feb. 7, 2025
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 438 bps
|
| First call: | May 15, 2021 at 103.375
|
| Equity clawback: | 40% at 106.75 until May 15, 2021
|
| Price talk: | 6¾% to 7%
|
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