By Paul A. Harris
Portland, Ore., July 8 – 888 Holdings Ltd. priced €700 million of senior secured notes (B1/B/BB+) backing the acquisition of British bookmaker William Hill International’s non-U.S. assets from Caesars Entertainment Inc., according to market sources.
The deal came in two tranches.
The issuance featured €300 million of three-month Euribor plus 550 basis points six-year floating-rate notes that priced at 85. The spread came on top of spread talk. The price came at the cheap end of the 85 to 86 price talk.
The deal also featured €400 million of 7.558% five-year fixed-rate notes that priced at 85.346 to yield 11.49%, near the wide end of the 11¼% to 11½% yield talk.
The issuer was 888 Acquisitions Ltd.
The deal also underwent investor-friendly covenant changes, which primarily bear upon how the company may disburse cash and incur additional debt.
The bonds had been slated to price during the June 27 week but were delayed by ongoing market volatility and thinning liquidity ahead of the extended Independence Day holiday in the United States, sources said.
Joint global coordinator and left bookrunner JPMorgan will bill and deliver. Morgan Stanley is also a global coordinator. Mediobanca and Barclays are joint bookrunners.
Proceeds plus proceeds from £759 million and $500 million of institutional and pro rata bank debt and cash reserves will be used to support the acquisition of William Hill's non-U.S. assets from Caesars Entertainment for an enterprise value of between £1.95 billion and £2.05 billion, as well as to repay William Hill debt and for working capital and general corporate purposes.
888 Holdings, which owns gambling brands and websites, is based in Gibraltar.
| Issuer: | 888 Acquisitions Ltd.
|
| Amount: | €700 million
|
| Issue: | Senior secured notes
|
| Global coordinators: | JPMorgan (bill and deliver) and Morgan Stanley
|
| Left bookrunner: | JPMorgan
|
| Joint bookrunners: | Mediobanca and Barclays
|
| Settlement date: | July 19
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Floating-rate notes
|
| Amount: | €300 million
|
| Tenor: | Six years
|
| Coupon: | Three-month Euribor plus 550 bps
|
| Euribor floor: | 0%
|
| Price: | 85
|
| Call protection: | One year
|
| Price talk: | Euribor plus 550 bps at 85 to 86
|
|
|
| Fixed-rate notes
|
| Amount: | €400 million
|
| Tenor: | Five year
|
| Coupon: | 7.558%
|
| Price: | 85.346
|
| Yield: | 11.49%
|
| Call protection: | Two years
|
| Price talk: | 11¼% to 11½%
|
|
|
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