Flutter Entertainment revises loan tranching; Secondary market dips again

By Sara Rosenberg

New York, Sept. 15 – Flutter Entertainment plc increased the size of its U.S. dollar term loan B and its U.S. and euro term loan A as the decision was made to terminate plans for other euro denominated senior secured debt.

Regarding the secondary loan market, it was another day of heaviness, with the general market down about an eighth of a point to a quarter of a point, sources said.

Flutter reworked

Flutter Entertainment lifted its U.S. dollar term loan B (Ba1/BBB-/BBB) due July 2028 to €1.25 billion equivalent from €1 billion equivalent, and its euro and U.S. term loan A to €750 million equivalent from €500 million equivalent, a market source remarked.

With the additional term loan debt being raised, the company canceled plans for €500 million of other euro denominated senior secured debt.

Talk on the term loan B remained at SOFR+CSA plus 325 basis points with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for one year. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Flutter accelerated

Commitments for Flutter’s term loan B are due at 1 p.m. ET on Friday, accelerated from noon ET on Tuesday, the source added.

Barclays is the sole physical bookrunner on the deal. Deutsche Bank is the administrative agent.

The new debt will be used 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 gaming operator.

Other deals may restructure

According to some sources, there’s a possibility that a portion of the previously announced transactions that have not yet come to market may have items shifting in the background.

For example, one source heard that Nielsen Holdings plc “seems to be shifting tranches around in the background”.

Based on previous filings with the SEC, Nielsen’s debt commitment is for a $650 million secured revolver, a $6.35 billion secured first-lien term loan, a $2.15 billion secured second-lien term loan and a $2 billion secured bridge facility.

The original commitment letter included a $2.15 billion unsecured bridge loan but a revised commitment letter provided for the second-lien term loan in place of the unsecured bridge loan.

Proceeds will be used to help fund the buyout of the company by a private equity consortium led by Evergreen Coast Capital Corp. and Brookfield Business Partners LP for $28 per share in an all-cash transaction valued at about $16 billion, including the assumption of debt.

Other funds for the transaction will come from about $5.19 billion of equity and a rollover of 16.6 million Nielsen ordinary shares.

Nielsen leads

BofA Securities Inc., Barclays, Mizuho, Credit Suisse, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., KKR Capital Markets LLC, Nomura Securities International Inc., Ares Capital Management LLC, BMO Capital Markets Corp., Goldman Sachs Bank USA, Jefferies Finance LLC, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Truist Securities Inc., BNP Paribas Securities Corp., CIBC, Fifth Third Bank and MUFG provided the commitment for Nielsen’s revolver, first-lien term loan and bridge loan.

Ares Capital, Carlyle Global Credit Investment Management LLC, PSP Investments Credit USA LLC, Fortress Credit Corp., BC Partners Advisors LP, Grosvenor Capital Management LP, Oaktree Capital Management LP, GoldenTree Asset Management LP, Stone Point Credit Adviser LLC and T. Rowe Price Associates Inc. provided the commitment for the second-lien loan.

Closing is expected this year, subject to approval by Nielsen shareholders, regulatory approvals, consultation with the works council and other customary conditions.

Nielsen is a New York-based provider of audience measurement, data and analytics.

Loan indexes

In more happenings, IHS Markit’s iBoxx loan indices declined on Wednesday, with the Leveraged Loan indices (MiLLi) closing out the day down 0.05% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.07%.

Month to date, the MiLLi is down 0.09% and year to date its down 1.55%. The LLLi is down 0.33% month to date and down 2.74% year to date.

Average secondary market bids in the U.S. on Wednesday were 93.74, down from 93.81 on Tuesday and down 3.21% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Flora Food’s March 2018 U.S. covenant-lite term loan B-2 at 99, up from 87.92, AT&T Colocation’s (Dawn Acquisition) December 2018 covenant-lite term loan at 77, up from 75.63, and Domtar Personal Care/Journey Personal Care’s March 2021 covenant-lite term loan at 70.20, up from 69.20.

Some top decliners on Wednesday were National CineMedia’s June 2018 term loan B at 74.75, down from 77.60, Isgenix’s June 2018 term loan at 40.33, down from 41.60, and National Mentor/Civitas’ March 2021 covenant-lite term loan at 80.25, down from 82.68.

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