By Paul A. Harris
Portland, Ore., May 10 – Amsterdam-based United Group BV priced €856 million of high-yield notes in two tranches on Friday, according to a market source.
The secured tranche featured €550 million of six-year senior secured floating-rate notes (B2/B), which priced at par and will bear interest at a 412.5 basis points spread to Euribor, with a 0% Euribor floor. The spread came at the tight end of spread talk in the Euribor plus 425 bps area. The issue price came on top of price talk.
In the unsecured tranche, issuing entity Summer Bidco BV priced €306 million of senior holdco pay-if-you-can PIK notes (B-) at par with a cash yield of 9%, at the wide end of the 8¾% to 9% yield talk. The PIK notes have an 9% cash coupon and a 9¾% PIK coupon.
Physical bookrunner and global coordinator JPMorgan will bill and deliver. Credit Suisse, KKR and Morgan Stanley are global coordinators and joint bookrunners. Credit Agricole CIB is a joint bookrunner.
Proceeds will be used to refinance the bridge facility put in place to fund the acquisition of United Group by BC Partners.
United Group is a technology, media and telecommunications services provider operating mainly in Serbia, Slovenia, Bosnia & Herzegovina, and Montenegro.
| Company: | United Group BV
|
| Amount: | €856 million
|
| Physical bookrunner: | JPMorgan (bill and deliver)
|
| Global coordinators: | JPMorgan, Credit Suisse, Morgan Stanley and KKR
|
| Joint bookrunner: | Credit Agricole CIB
|
| Trade date: | May 10
|
| Settlement date: | May 17
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Secured notes
|
| Issuer: | United Group BV
|
| Amount: | €550 million
|
| Maturity: | May 15, 2025
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Euribor plus 412.5 bps
|
| Euribor floor: | 0%
|
| Price: | Par
|
| First call: | May 15, 2020 at par
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | Euribor plus 425 bps at par
|
|
|
| Pay-if-you-can notes
|
| Issuer: | Summer Bidco BV
|
| Amount: | €306 million
|
| Maturity: | Nov. 15, 2025
|
| Securities: | Senior unsecured holdco pay-if-you-can PIK notes
|
| Cash coupon: | 9%
|
| PIK coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 938 bps
|
| First call: | May 15, 2021 at 102
|
| Rating: | S&P: B-
|
| Price talk: | 8¾% to 9% cash-pay/plus 75 bps for PIK
|
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