Blackstone Mortgage frees to trade; Uber gains with earnings; Tenneco, Starwood set talk

By Sara Rosenberg

New York, Nov. 1 – Blackstone Mortgage Trust Inc. increased the size of its add-on term loan B-4 and tightened the original issue discount before the debt broke for trading on Tuesday.

Also, Uber Technologies Inc.’s term loans headed higher in the secondary market following the release of favorable third quarter numbers.

And, in more happenings, Tenneco Inc. (Pegasus Merger Co.) and Starwood Property Mortgage LLC came out with price talk on their term loan transactions in connection with their lender calls.

Blackstone tweaked, breaks

Blackstone Mortgage Trust on Tuesday raised its fungible add-on term loan B-4 due 2029 to $325 million from $250 million and adjusted the original issue discount to 97 from 96.5, according to a market source.

As before, pricing on the add-on term loan is SOFR plus 350 basis points with a 0.5% floor and no CSA, and the add-on loan as well as the existing $499 million term loan B-4 are getting 101 soft call protection for six months.

Following the changes, the add-on term loan freed to trade, with levels quoted at 97¼ bid, 98¼ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used for general corporate purposes.

Blackstone Mortgage Trust is a New York-based real estate finance company.

Uber rises

Uber’s term loans were stronger in trading after third quarter earnings were disclosed, with the 2025 term loan quoted at 99¼ bid, par offered, up from 99 bid, 99¾ offered on Monday, and the 2027 term loan quoted at 99 bid, 99¾ offered, up from 98¾ bid, 99½ offered, a market source remarked.

For the third quarter, Uber reported a net loss of $1.206 billion, or $0.61 per diluted share, versus a net loss of $2.424 billion, or $1.28 per diluted share, in the third quarter of 2021.

Revenues for the quarter were $8.343 billion, up from $4.845 billion in the comparable period in the prior year, adjusted EBITDA was $516 million, up from $8 million in the previous year’s third quarter, and gross bookings grew 26% year-over-year to $29.1 billion, or 32% on a constant currency basis.

“Strong demand for our offerings, better marketplace efficiency, and our asset-light platform helped to deliver adjusted EBITDA well above our guidance, even as foreign exchange and inflationary headwinds impact all global businesses,” said Nelson Chai, chief financial officer, in a news release.

For the fourth quarter, the company expects adjusted EBITDA of $600 million to $630 million, and gross bookings to grow 23% to 27% year-over-year on a constant currency basis, with an expected 7 percentage point year-over-year currency headwind, translating to a range of $30 billion to $31 billion.

Uber is a San Francisco-based online transportation network company.

Tenneco guidance

In other news, Tenneco held its lender call at 1:30 p.m. ET on Tuesday and, a few hours before the call began, talk on its $1.4 billion six-year covenant-lite senior secured term loan B emerged at SOFR+10 bps CSA plus 500 bps with a 0.5% floor, an original issue discount of 84 to 85 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Nov. 14 and allocations are expected on Nov. 15, the source added.

The company’s $3.3 billion of credit facilities (B/BB-) also include a $600 million revolver and a $1.3 billion term loan A.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Jefferies LLC, RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, ING, Mizuho, MUFG, Santander and U.S. Bank are leading the deal.

Tenneco being acquired

Tenneco will use the new term loans with $1 billion of senior secured notes, a $750 million senior secured bridge facility, a $1 billion senior unsecured bridge facility, $1.718 billion of equity and cash from the balance sheet to fund the buyout of Tenneco by Apollo for $20.00 per share, or about $7.1 billion, including debt, to refinance existing debt, and to pay fees and expenses.

Closing is expected in mid-November.

Tenneco is a Lake Forest, Ill.-based designer, manufacturer and marketer of automotive products for original equipment and aftermarket customers.

Starwood holds call

Starwood Property Mortgage hosted a lender call at 11 a.m. ET on Tuesday, launching a $400 million five-year first-lien senior secured sustainability term loan B (//BBB-) talked at SOFR plus 350 bps to 375 bps with a 0.5% floor, an original issue discount of 97, 0 bps CSA and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the company intends to use the net proceeds to repay repurchase facilities.

Starwood Property Mortgage is a commercial mortgage real estate investment trust.

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