High Yield Calendar

May 29 Week

AVENTIV TECHNOLOGIES LLC: $400 million four-year first-lien senior secured notes (B3/B); Rule 144A and Regulation S for life; callable after 1.5 years at par plus 50% of coupon; to refinance debt; Deutsche Bank (left books), BofA, PNC, Stifel, Jefferies, Morgan Stanley, BNP Paribas, Credit Suisse (joint books); Dallas-based supplier of communications and other services to corrections and government services sectors

On The Horizon

ACURIS FINANCE US, INC. and ACURIS FINANCE SARL, doing business as ION ANALYTICS: $850 million equivalent eight-year senior secured notes (expected ratings B2/B) in tranches of dollar-denominated notes, price talk 6% area (initial talk low-to-mid 6% area), and euro-denominated notes, price talk 4¾% area (initial talk mid-to-high 4% area) tranche sizes to be determined (expected $500 million and $350 million equivalent euro); UBS (left books), BNP Paribas (joint books); Rule 144A and Regulation S for life; notes in both tranches callable after two years at par plus 50% of respective coupons; to refinance debt incurred in the Backstop acquisition, to fund a dividend for repurchase of shares from certain minority shareholders in one or more parent companies, to partially prepay amounts drawn under the credit facility and for general corporate purposes; London-based market analytics and data provider (delayed as of Jan. 28, 2022).

FORTREA: $570 million secured debt; also $1.52 billion credit facilities via Goldman Sachs, Barclays, to launch on June 1 lender call; to fund spinoff of Fortrea from Labcorp (Fortrea to make expected $1.605 billion cash distribution to Labcorp as partial consideration for the assets to be contributed in the spinoff) expected to close during middle part of 2023; Durham, N.C.-based biopharmaceutical product and medical devices supplier.

PEGASUS MERGER CO. (TENNECO INC.): $1 billion six-year senior secured notes; BofA (lead left); three-year call protection; help fund acquisition of Tenneco by Apollo (enterprise value approximately $7.1 billion); Lake Forest, Ill.-based aftermarket auto components supplier; deal ran an early November roadshow.

SOTERA HEALTH CO.: Incremental secured debt (bank or capital markets) to fund a significant portion of an agreement reached by its subsidiary, Sterigenics, to settle the more than 870 ethylene oxide cases ($408 million) pending against it in the Circuit Court of Cook County, Ill., and U.S. District Court for the Northern District of Illinois; pending settlements proceeds could be used to secure collateral needed for an appeal of the adverse judgment in the ethylene oxide litigation; Sotera is a Broadview Heights, Ohio-based provider of sterilization testing and services; Sterigenics provides outsourced sterilization and irradiation services; financing to be undertaken during first half of 2023; disclosed in 8-K document filed Jan. 10 with SEC.

TEMPUR SEALY INTERNATIONAL INC.: New secured and unsecured financing to help fund its acquisition of Mattress Firm Group Inc. for approximately $2.7 billion, expected to close during the second half of 2024, and repay Mattress Firm’s outstanding debt; JPMorgan is sole financial adviser to Tempur Sealy; Goldman Sachs, Barclays and Jefferies are financial advisers to Mattress Firm; Tempur Sealy is a Lexington, Ky.-based bedding products company; Mattress Firm is a Houston-based mattress specialty retailer; disclosed in 8-K filed May 9 with SEC.

TWITTER INC. (X HOLDINGS): $3 billion one-year senior secured bridge loan and $3 billion at SOFR plus 675 bps, 0% floor, 50 bps step-ups every three months up to a specified cap, and $3 billion one-year senior unsecured bridge loan at SOFR plus 1,000 bps, 0% floor, 50 bps step-ups every three months up to a specified cap, expected to be replaced with $3 billion senior secured notes and $3 billion senior unsecured notes; proceeds plus $7 billion credit facilities to help fund acquisition of Twitter by an entity wholly owned by Elon Musk; San Francisco-based online social networking service.

VIASAT INC.: $1.6 billion senior notes (assumed pricing 5½%), also $700 million term loan; debt commitment from BofA, JPMorgan, Barclays, Credit Suisse; proceeds to support the acquisition of Inmarsat, expected to close during second half of 2022; Carlsbad, Calif.-based Viasat and London-based Inmarsat are satellite telecommunications companies.

VISTRA CORP. via VISTRA OPERATIONS: $2.6 billion senior secured, senior unsecured and term loan debt to help fund its acquisition of Energy Harbor Corp. for $3 billion cash and 15% equity interest in Vistra Vision, expected to close in second half of 2023; acquisition financing also includes $600 million of Vistra balance sheet cash and $430 million of rollover Energy Harbor net debt; Vistra is an Irving, Tex.-based retail electricity and power generation company; Vistra Vision is an Irving, Tex.-based zero-carbon generation company; Citi is exclusive financial adviser to Vistra, Goldman Sachs and RBC are financial advisers to Energy Harbor; information disclosed in March 6 company presentation.

Bridge Loans

CACTUS WELLHEAD LLC: $375 million 364-day senior secured bridge loan with three-month extension option to be replaced by debt and/or equity; debt commitment from JPMorgan; to support acquisition of FlexSteel Technologies Holdings Inc. for approximately $621 million, expected to close in early 2023; other funds to come from cash on hand; Cactus is a Houston-based manufacturer of wellhead and pressure control equipment. FlexSteel manufactures spoolable pipe technologies used during production phases of a well’s lifecycle; details disclosed in 8-K filed Jan. 3 with SEC.

SEMTECH CORP.: $1.151 billion 364-day bridge loan to help fund its acquisition of Sierra Wireless Inc., enterprise value approximately $1.2 billion, expected to close in Semtech’s fiscal year 2023; commitment from JPMorgan; Semtech is a Camarillo, Calif.-based supplier of semiconductors and advanced algorithms; Sierra Wireless is a British Columbia-based Internet of Things solutions provider; disclosed in 8-K filed with SEC on Aug. 3.

SYNEOS HEALTH INC.: $1.5 billion bridge loans and $2.7 billion credit facilities to help fund its acquisition by Elliott Investment Management, Patient Square Capital and Veritas Capital in a transaction valued at about $7.1 billion including outstanding debt, expected to close in second half of 2023; Goldman Sachs, UBS, RBC, BMO, HSBC, Wells Fargo, Citigroup, Jefferies, Macquarie, Natixis and Truist provided the debt commitment; Morrisville, N.C.-based biopharmaceutical solutions provider; disclosed in 8-K filed May 10 with SEC.

UNIVAR SOLUTIONS INC.: $2 billion senior secured bridge loan; also $3.5 billion credit facilities; to help fund its acquisition by Apollo, enterprise value approximately $8.1 billion, expected to close second half of 2023; JPMorgan, BMO Capital Markets, BNP Paribas Securities Corp., Credit Suisse, Guggenheim Securities LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC (financial advisers to Apollo), Goldman Sachs, Deutsche Bank (financial advisers to Univar); Downers Grover, Ill.-based specialty chemical company; information disclosed in 8-K filed with SEC on March 14.

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