Entain Holdings term loan B hits secondary market following size, pricing changes

By Sara Rosenberg

New York, Oct. 18 – Entain Holdings Ltd. (GVC Finance LLC) increased the size of its term loan B, set the spread at the low end of guidance, tightened the original issue discount and modified MFN before freeing up for trading on Tuesday.

Meanwhile, the secondary market in general was unchanged to up about a quarter of a point with a decent amount of trading activity.

Entain revised, breaks

Entain Holdings raised its seven-year covenant-lite term loan B to $1 billion from $750 million, firmed pricing at SOFR plus 350 basis points, the low end of the SOFR plus 350 bps to 375 bps talk, and changed the original issue discount to 97.5 from 97, a market source remarked.

In addition, the MFN on the term loan was revised to 50 bps for 12 months from 75 bps for 12 months, the source continued.

As before, the term loan has 10 bps CSA, a 0.5% floor and 101 soft call protection for one year.

Recommitments were due at 12:30 p.m. ET on Tuesday and the term loan broke for trading in the afternoon, with levels quoted at 98 bid, 98½ offered, a trader added.

Deutsche Bank Securities Inc., Lloyds, Mediobanca, NatWest and Santander are leading the deal. Wilmington Trust is the administrative agent.

Entain buying SuperSport

Entain will use the new term loan B to fund its acquisition of 75% of the economic rights in SuperSport Group from EMMA Capital, and funds from the upsizing will be used for general corporate purposes and to provide further balance sheet flexibility in relation to planned capital uses/refinancings in the quarters ahead.

SuperSport is being purchased for €600 million in cash at completion and a further contingent payment that is expected to be €90 million made to EMMA in early 2023 based on SuperSport’s EBITDA for the financial year ending 2022. EMMA will contribute its 25% stake in SuperSport to Entain at an initial implied valuation of €200 million, with the contingent payment implying an additional €30 million value contributed by EMMA.

Closing is expected by the end of this month.

Entain is a Douglas, Isle of Man-based sports-betting, gaming and interactive entertainment group. SuperSport is a gaming and sportsbook operator in Croatia.

Secondary firm

In other news, the secondary market in general was unchanged to up about a quarter of a point with decent volume but on the lighter side, according to a market source.

Citrix Systems Inc. (Tibco Software Inc.) was one of the names that was unchanged on the day, with levels quoted at 90 bid, 90¾ offered, the source added.

Citrix is a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology.

Fund flows

Actively managed loan fund flows on Monday were negative $150 million and loan ETFs were negative $26 million, sources said.

Outflows for loan funds week-to-date total an estimated $573 million, sources added. Outflows in the prior week were $1.1 billion.

Loan indices gain

IHS Markit’s iBoxx loan indices rose on Monday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.12% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.18%.

Month to date, the MiLLi is up 0.61% and year to date its down 3.04%. The LLLi is up 0.96% month to date and down 3.88% year to date.

Average secondary market bids in the U.S. on Monday were 92.30, down 4.7% year to date.

According to the IHS Markit data, some of the top advancers on Monday were 8th Avenue Food’s October 2018 covenant-lite term loan at 86.83, up from 83, Byju’s November 2021 covenant-lite term loan B at 75, up from 73, and Hornblower’s November 2020 incremental covenant-lite term loan B at 68.75, up from 67.17.

Some top decliners on Monday were Air Methods’ April 2017 covenant-lite term loan B at 73.81, down from 77.16, Intermedia Holdings July 2018 covenant-lite term loan B at 72.50, down from 75, and Avaya’s July 2022 covenant-lite term loan at 63, down from 65.

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