Refinitiv lifts U.S. and euro term loan sizes, reduces pricing

By Sara Rosenberg

New York, Sept. 17 – Refinitiv upsized its U.S. seven-year covenant-light term loan B to $6.5 billion from $5.5 billion and its euro seven-year covenant-light term loan B to $2.75 billion equivalent from $2.5 billion equivalent, according to a market source.

Also, pricing on the U.S. term loan was lowered to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps and pricing on the euro term loan was trimmed to Euribor plus 400 bps from Euribor plus 425 bps, the source said.

Furthermore, the original issue discount talk on both term loans was revised to the 99.5 area from talk in the range of 99 to 99.5.

The U.S. term loan still has no Libor floor, the euro term loan still has a 0% floor and both loans still have 101 soft call protection for six months.

The company’s now $10 billion equivalent of credit facilities, up from $8.75 billion equivalent, also include a $750 million revolver.

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 were scheduled to be due at 5 p.m. ET/5 p.m. BST on Monday, the source added.

Allocations are targeted for Tuesday.

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

Other funds for the transaction will come from bonds, which were downsized from $5.5 billion equivalent with the upsizing of the term loans.

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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