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Yahoo shifts funds between term loan B and high-yield style loan
By Sara Rosenberg
New York, July 20 – Yahoo (Verizon Media) downsized its six-year term loan B to $650 million from $750 million and upsized its six-year high-yield style term loan B to $850 million from $750 million, according to a market source.
Also, pricing on both term loans was reduced to Libor plus 550 basis points from Libor plus 600 bps and the original issue discount on the loans was tightened to 98.5 from 98, the source said.
The term loans still have a 0.75% Libor floor.
As before, the term loan B has 101 soft call protection for six months and amortization of 5% per annum, and the non-amortizing high-yield style term loan B is non-callable for two years, then callable at par plus 50% of the margin in year three and callable at par plus 25% of the margin in year four.
The company’s $1.65 billion of credit facilities (B/BB+) also include a $150 million five-year revolver.
RBC Capital Markets, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Jefferies LLC are the lead arrangers on the deal.
Recommitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.
Allocations are expected on Wednesday morning.
Proceeds will be used with $500 million of privately placed HoldCo notes to help fund the buyout of Verizon Media by Apollo Global Management Inc. from Verizon for $4.25 billion in cash and preferred interests of $750 million. Verizon will receive and retain a 10% stake in the company.
Verizon Media will be known as Yahoo at the close of the transaction.
Closing is expected in the second half of this year, subject to certain closing conditions.
Yahoo is a technology and media company comprised of brands such as Yahoo and AOL.
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