High Yield Calendar

Oct. 2 Week

GUALA CLOSURES SPA: €350 million long five-year senior secured floating-rate notes (B1/B+); non-callable for one year; Deutsche Bank Securities Inc. (bill & deliver), UniCredit Capital Markets LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC; fund shareholder dividend, cover acquisition costs from majority stake in Yibin Fengyi Packaging Co., cash on the balance sheet and general corporate purposes; Milano, Italy-based producer of closures for beverages and condiments; books close Wednesday; initial talk Euribor plus 400 bps to 425 bps at 99.

Fourth Quarter Business

STENA AB: Euro- and/or dollar-denominated senior secured notes with a tenor of five years to eight years (also possible add-on to euro-denominated 7¼% senior secured notes due 2028); private; to redeem its senior secured notes due 2025; Gothenburg, Sweden-based conglomerate, which is heavily focused on maritime shipping; roadshow started Sept. 18.

ABERCROMBIE & FITCH CO.: New debt to refinance $300 million Abercrombie & Fitch Management Co. 8¾% senior secured notes due July 2025; JPMorgan; New Albany, Ohio-based specialty retailer; possible September/fourth-quarter business

CAESARS ENTERTAINMENT INC.: New debt to refinance CRC Escrow Issuer, LLC/CRC Finco, Inc. 5¼% senior notes due October 2025; Reno, Nev.-based hotel and casino entertainment company; possible September business

UBER TECHNOLOGIES, INC.: New debt to refinance $1 billion 7½% senior notes due May 2025, presently callable at 101.875; San Francisco transportation conglomerate; possible 2023 fourth-quarter business

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)

CONNECT HOLDING II LLC (BRIGHTSPEED): $1.865 billion senior secured notes; to support the carve-out acquisition of Lumen Technologies’ incumbent local exchange carrier (ILEC) assets and all associated operations across 20 states by Apollo Global Management, Inc.; Brightspeed, a broadband and telecom services provider, will be based in Charlotte, N.C.; postponed September 2022 due to market conditions

HIGHPEAK ENERGY INC.: $575 million senior notes due 2028; Rule 144A and Regulation S for life; callable after two years at par plus 50% of coupon (special call allows issuer to redeem 10% of notes at 103 during non-call period); BofA (left books), Wells Fargo, Texas Capital, Credit Suisse (joint books), Citizens, Fifth Third, U.S. Bancorp, Amarillo, Amegy, UMB, Roth (co’s); to pay off $475 million senior notes, to pay down debt under credit agreement, with remaining proceeds for general corporate purposes, which may include capital expenditures, drilling and development, and further bolt-on asset acquisitions; Fort Worth-based publicly traded independent crude oil and gas company.

OSRAM LICHT AG: €800 million equivalent of dollar- and euro-denominated senior notes; HSBC, Morgan Stanley, UBS; part of a comprehensive financing plan disclosed Sept. 27, plan also includes €800 million rights issue and additional €350 million mix of debt instruments such as unsecured notes, bi-lateral debt facilities, or other instruments; to reduce gross and net debt and balance maturity profile; Munich-based electric light and semiconductor company; notes offering (subject to approval at Oct. 20 extraordinary shareholders meeting) expected to come to market winter 2023/2024, pending market conditions.

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

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

CASELLA WASTE SYSTEMS INC.: $200 million 364-day unsecured bridge loan pricing SOFR+10 bps CSA plus 525 bps (spread increases by 50 bps every 90 days until it hits a cap of 675 bps), debt commitment from Raymond James, Stifel; to support its purchase of Consolidated Waste Services LLC for about $219 million in cash, closing expected fourth quarter; Casella Waste is a Rutland, Vt.-based solid waste, recycling and resource management services company; disclosed in 8-K filed June 12 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.

SUMMIT MATERIALS INC.: Up to $1.3 billion senior 364-day bridge loan to fund cash consideration of its acquisition of Argos North America Corp. from Cementos Argos SA; commitment from Morgan Stanley; Argos is being purchased for about $1.2 billion in cash and around 54.7 million shares of Summit stock, valuing Argos at roughly $3.2 billion; acquisition expected in first half of 2024; Summit Materials is a Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt; Argos is a cement producer; disclosed in 8-K filed with SEC on Sept. 7.

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