Multiversity tightens talk and covenants on €1.1 billion of fixed-, floating-rate notes due 2031

By Paul A. Harris

Portland, Ore., May 2 – Italy’s Multiversity SpA launched €1.1 billion of Pachelbel Bidco SpA senior secured notes (B2/B) in two tranches due 2031 on Thursday, according to market sources.

A €500 million tranche of fixed-rate notes launched at 7 1/8%, tight to price talk in the 7¼% area. Initial guidance was 7¼% to 7½%.

A €600 million tranche of floating-rate notes launched with a 425 basis points spread to Euribor at par, tight to spread talk in the 437.5 bps area. Initial guidance was 450 bps to 475 bps.

Final tranche sizes saw €50 million shifted to the fixed-rate tranche from the floating-rate tranche.

The notes also underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.

The fixed-rate notes carry three years of call protection, while the floating-rate notes are callable after one year at par.

Morgan Stanley and Goldman Sachs are global coordinators and bookrunners for the Rule 144A and Regulation S offering.

BofA Securities, Deutsche Bank, Credit Agricole CIB, CVC Capital Partners, UniCredit and BNP Paribas are also bookrunners.

Proceeds will be used to fund the acquisition by Pachelbel of Multiversity, to fund cash on the balance sheet and to pay fees and expenses.

Rome-based Multiversity operates an online university.

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