Refinitiv discloses price talk on U.S. and euro term loans

By Sara Rosenberg

New York, Sept. 4 – Refinitiv released price talk on its $5.5 billion U.S. seven-year covenant-light term loan B and $2.5 billion equivalent euro seven-year covenant-light term loan B in connection with its London bank meeting on Tuesday, according to a market source.

A bank meeting for U.S. investors will take place at 11 a.m. ET in New York on Wednesday.

The U.S. term loan is talked at Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, and the euro term loan is talked at Euribor plus 425 bps with a 0% floor and a discount of 99 to 99.5, the source said.

Both term loans have 101 soft call protection for six months.

The company is also expected to get a $750 million revolver.

Expected loan ratings are B2/B/BB+, the source continued.

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.

Commitments are due at 5 p.m. ET on Sept. 17, the source added.

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

Other funds for the transaction will come from $5.5 billion equivalent in notes.

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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