NielsenIQ updates U.S. and euro term loan sizes, pricing

By Sara Rosenberg

New York, Feb. 13 – NielsenIQ downsized its incremental U.S. term loan B due March 2028 (B2/B) to $1.455 billion from $1.475 billion and upsized its euro incremental term loan B due March 2028 (B2/B) to €500 million from $500 million equivalent, according to a market source.

In addition, pricing on the U.S. term loan was increased to SOFR plus 625 basis points from SOFR plus 600 bps and the original issue discount talk was changed to a range of 88 to 89 from a range of 92 to 93, and then finalized at 89 later in the day, the source said.

Furthermore, pricing on the euro term loan was lifted to Euribor plus 650 bps from Euribor plus 600 bps, the original issue discount talk was revised to a range of 88 to 89 from a range of 92 to 93, and then firmed at 89, and 25 bps step-downs at 0.5x and 1x inside opening first-lien net leverage were removed so there are no step-downs in pricing.

Also, the 101 soft call protection on both term loans was extended to one year from six months, ticking fees were added to the loans of half the spread from days 46 to 90 post allocation and the full spread thereafter, and revisions were made to documentation.

The U.S. term loan still has a 0.5% floor, and the euro term loan still has a 0% floor.

JPMorgan Chase Bank, UBS Investment Bank, BofA Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., Fifth Third, HSBC Securities, MUFG, RBC Capital Markets, Standard Chartered and Santander are the bookrunners on the deal, with JPMorgan left lead on the U.S. loan and UBS left lead on the euro loan. BofA is the agent.

Commitments for the U.S. term loan were scheduled to be due at noon ET on Monday, and commitments for the euro term loan were scheduled to be due at 10:30 a.m. ET on Monday, the source added.

Proceeds will be used to fund the acquisition of GfK SE, to repay revolving credit facility borrowings and for general corporate purposes.

Advent International will be the majority shareholder in the combined company, while Nuremberg Institute for Market Decisions and KKR will remain invested as significant shareholders in the combined company. Advent acquired NielsenIQ in a transaction that closed in 2021. Nuremberg Institute and KKR are current investors in GfK.

Closing is expected early this year, subject to customary conditions.

NielsenIQ is a Chicago-based information services company. GfK is a provider of data and insights to drive marketing, sales and organizational effectiveness.

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