Masorange sets U.S. term loan at $400 million, euro at €800 million

By Sara Rosenberg

New York, April 17 – Masorange (Lorca Finco plc) revised its seven-year covenant-lite term loan B (Ba3/BB+/BB+) to be comprised of a minimum $400 million tranche and a minimum €400 million tranche, from initial talk of a €1.5 billion equivalent U.S and euro term loan B with tranche sizes to be determined, and then sizes finalized as a $400 million term loan B and an €800 million term loan B, according to market sources.

Also, the original issue discount talk on the U.S. term loan was changed to a range of 99.5 to 99.75 from 99.5, and then the discount was set at 99.75, sources said.

In addition, pricing on the euro term loan firmed at Euribor plus 350 basis points, the low end of the Euribor plus 350 bps to 375 bps talk.

Pricing on the U.S. term loan remained at SOFR plus 350 bps, and both loans still have a 0% floor and 101 soft call protection for six months.

BofA Securities Inc. and BNP Paribas Securities Corp. are the joint global coordinators on the deal. BofA Securities and BNP Paribas are the physical bookrunners on the U.S. loan, and BNP Paribas, BofA Securities, BBVA and Natixis are the physical bookrunners on the euro loan. Caixa, Credit Agricole, Credit Suisse, Goldman Sachs, ING, Intesa, JPMorgan Chase Bank, Mizuho, Santander, SMBC and Societe Generale are passive bookrunners. Kroll Agency Services is the agent.

Commitments were scheduled to be due at noon ET on Wednesday for the U.S. loan and at 11 a.m. ET on Wednesday for the euro loan, accelerated from noon ET on Thursday, sources added.

The company is also planning on getting a €600 million private placement of five-year, non-callable for two years, senior secured notes, versus revised talk of a minimum size of €500 million and no size given initially.

The notes are priced at 5¾%.

Proceeds from the term loan Bs and notes will be used with a term loan A and cash from the balance sheet to refinance the drawn facilities that funded a €6.1 billion payment upstreamed to the shareholders at closing of the formation of Masorange, a joint venture of Orange Spain and MasMovil, and due to the increased debt raise, for general corporate purposes and to address upcoming maturities.

Masorange is a mobile and fixed telecom company in Spain.

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