High Yield Calendar: $1.63 billion deals being marketed

April 2 Week

MCDERMOTT TECHNOLOGY (AMERICAS), INC. and MCDERMOTT TECHNOLOGY (US), INC. (MCDERMOTT INTERNATIONAL INC.) $1.3 billion senior notes due 2024 (B2/B-) downsized from $1.5 billion (term loan upsized by $200 million); Barclays (joint global coordinator, joint bookrunner, bill and deliver), Credit Agricole CIB (joint global coordinator and joint bookrunner), ABN Amro, Goldman Sachs & Co., MUFG, RBC Capital Markets LLC (joint bookrunners), Standard Chartered (co-manager), Pareto (Nordic manager); Rule 144A and Regulation S for life; callable after three years at par plus 75% of coupon; 35% equity clawback and par plus coupon; 101% poison put; coming in connection with the merger of McDermott and CB&I, with proceeds from the bonds to repay McDermott and CB&I debt, general corporate purposes; McDermott is a Houston-based engineering and design company, CB&I is a Netherlands-based provider of technology and infrastructure for the energy industry (combined company will be based in Houston); roadshow March 22-28; price talk 10˝% area (initial price talk 8 3/8% to 8˝%, $550 million tranche of eight-year notes withdrawn; six-year notes upsized to $1.3 billion from $950 million); pricing April 2 week (moved back from March 30).

AMERICAN GREETINGS CORP.: $325 million eight-year senior notes (Caa1/CCC+); Deutsche Bank Securities Inc.; non-callable for three years; to support Clayton, Dubilier & Rice’s acquisition of a 60% ownership stake in the company (financing also includes $445 million term loan and $250 million revolver); Cleveland-based greeting card company; roadshow starts March 26; pricing expected April 3.

On The Horizon

CENTENE CORP.: $1.6 billion bonds; Barclays to be involved; $2.3 billion of new equity, including share consideration, to fund its planned $3.75 billion acquisition of Fidelis Care; Centene is a St. Louis-based managed care and specialty health care services provider; expected during first quarter of 2018.

ENERGIZER HOLDINGS INC.: Up to $720 million senior notes backed by one-year bridge at Libor plus 500 bps with 1% Libor floor, Barclays left lead arranger, JPMorgan joint arranger; also $2.04 billion credit facilities; to fund its acquisition of Spectrum Brands’ Global Battery and Portable Lighting Business, expected to close before the end of 2018; St. Louis-based manufacturer of primary batteries and portable lighting products.

PENN NATIONAL GAMING INC.: $840 million senior unsecured bridge loan, also $1.14 billion in incremental senior secured term loans; debt commitment from Bank of America Merrill Lynch, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Wells Fargo Securities LLC, Citizens Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC; to finance the acquisition of Pinnacle Entertainment Inc., expected to close in the second half of 2018; Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations; Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

SINCLAIR BROADCAST GROUP INC.: Commitment for $5.6 billion in debt financing, including a $785 million bridge loan, to help fund acquisition of Tribune Media Co.; expected 50:50 mix of fixed- and floating-rate debt; JPMorgan Chase Bank, RBC and Deutsche Bank Securities Inc. leads; Hunt Valley, Md.-based television broadcasting company.

SS&C TECHNOLOGIES HOLDINGS INC.: $1.25 billion bridge loan to be taken out with high-yield bonds and/or IPO of common shares, Credit Suisse, Morgan Stanley; proceeds, along with about $7.15 billion of bank debt, to help fund its acquisition of DST Systems Inc. and to refinance existing debt; SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services; targeted to close in third quarter of 2018; announced in Jan. 11 press release.

TUI AG: €400 million seven-year notes; Barclays, Commerzbank, HSBC, Credit Agricole CIB; for general corporate purposes; travel and tourism company based in Hannover, Germany.

TWINSET SPA: €170 million five-year senior secured floating-rate notes; private; to redeem the €150 million senior Euribor plus 587.5 bps secured floating rate notes due 2019, partially repay a shareholder loan and cancel the existing hedging arrangement; Capri, Italy-based supplier of luxury women's apparel and accessories.

UNILEVER SPREADS (FLORA FOOD GROUP): €1 billion high-yield notes and €3.9 billion equivalent term loans via Credit Suisse, Deutsche Bank, KKR Capital Markets, BNP Paribas, Credit Agricole, Goldman Sachs, HSBC, ING, Lloyds, Mizuho, RBC, SG CIB, UniCredit; to help fund KKR’s acquisition of Unilever’s margarine and spreads business; Unilever is a consumer goods company based in Englewood Cliffs, N.J.; bonds expected early March.

WMIH CORP.: $2.75 billion senior notes backed by bridge loans; Credit Suisse Securities (USA) LLC, Jefferies LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.; to help fund the acquisition of Nationstar Mortgage Holdings Inc., expected to close in the second half of 2018, and refinance around $1.9 billion of Nationstar’s existing senior unsecured notes; WMIH is a Seattle-based reinsurance business; announced in Feb. 14 8-K.

Roadshows

Starts March 26: AMERICAN GREETINGS; Deutsche Bank.

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