Flutter Entertainment releases pricing guidance; Covetrus readies term loan

By Sara Rosenberg

New York, Sept. 6 – In the primary market on Tuesday, Flutter Entertainment plc released price talk on its U.S. term loan B in connection with its lender call.

Furthermore, Covetrus Inc. (Corgi BidCo Inc.) joined this week’s new issue calendar with plans to launch its first-lien term loan.

Flutter proposed terms

Flutter Entertainment held its call in the morning and announced talk on its €1 billion equivalent U.S. dollar term loan B (BBB-) due July 2028 at SOFR+CSA plus 325 basis points with a 0.5% floor and an original issue discount of 97, a market source remarked.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate, the source added.

The term loan has 101 soft call protection for one year.

Commitments are due at noon ET on Sept. 20.

Barclays is leading the deal. Deutsche Bank is the administrative agent.

The term loan B will be used with euro and U.S. term loan A borrowings and other euro-denominated senior secured debt to fund the acquisition of Sisal SpA from CVC Capital Partners Fund VI for €1.913 billion, which was completed on Aug. 4.

Flutter is a Dublin-based sports betting and gaming operator. Sisal is an Italian online and retail gaming operator.

Covetrus on deck

Covetrus set a lender call for 11 a.m. ET on Wednesday to launch its previously announced $1.525 billion seven-year covenant-lite first-lien term loan, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Sept. 19, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank, BMO Capital Markets, Mizuho Securities USA LLC, TD Securities (USA) LLC, Santander Bank and ING Capital LLC are leading the deal.

The company is also getting a $350 million privately placed second-lien term loan and, based on the commitment letter, the company is expected to get a $300 million five-year revolver as well.

The new debt will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice and TPG Capital for $21.00 per share in cash, representing an enterprise value of about $4 billion. Clayton, Dubilier & Rice currently owns around 24% of the company’s outstanding shares of common stock.

Closing is expected this year, subject to regulatory and shareholder approval, and other conditions.

Covetrus is a Portland, Me.-based animal-health technology and services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.