High Yield Calendar: $600 million in the market

Nov. 13 Week

VERDE PURCHASER, LLC (VERITIV CORP.): $600 million senior secured notes due 2030; Rule 144A and Regulation S for life; first call in three years at par plus 50% of coupon; Goldman Sachs (left books), RBC, Wells Fargo, BMO, UBS, BNP Paribas, Mizuho, Rabobank, Natixis, Regions, Citizens, ING, Stifel, Scotia (joint books); to support buyout of Veritiv, an Atlanta-based business-to-business provider of packaging, publishing, and hygiene products, by Clayton, Dubilier & Rice LLC; roadshow started Nov. 13; pricing Nov. 13 week; initial talk 10½% area.

OSRAM AG: €800 million equivalent senior notes due March 2029 (expected ratings B2/BB-/BB-) in dollar-denominated notes, UBS (global coordinator, joint physical books, bill and deliver), Deutsche Bank, HSBC (global coordinators, joint physical books), and euro-denominated notes, HSBC (joint global coordinator, joint physical books, bill and deliver), Deutsche Bank, UBS (joint global coordinators, joint physical books), sizes to be determined; Rule 144A and Regulation S for life; first calls in two years at par plus 50% of respective coupons; Commerzbank, UniCredit (joint global coordinators, joint physical books for both tranches), Credit Agricole CIB, Erste, LBBW, Morgan Stanley, RBI (joint books for both tranches); proceeds plus proceeds from a rights issue and the Malaysia SLB transaction to refinance debt and general corporate purposes; Munich-based electric light manufacturer; virtual roadshow Nov. 13-15, pricing thereafter.

B&M EUROPEAN VALUE RETAIL SA (B&M RETAIL): £250 million senior secured notes due 2030 (Ba2/BB); Regulation S; first call in three years at par plus 50% of coupon; HSBC (global coordinator, physical books, bill and deliver), BNP Paribas (global coordinator, physical books), BofA (global coordinator, joint books), Lloyds, NatWest, Rabobank, Bank of Ireland (joint books); to purchase up to £250 million of the outstanding £400 million 3 5/8% senior secured notes due 2025 via tender offer; Liverpool, U.K.-based variety retailer; virtual roadshow Nov. 13-14, pricing thereafter; initial talk mid-8% area.

HUHTAJAKI OYJ: €300 million senior notes (S&P: expected BB+); Regulation S; BNP Paribas, Nordea, SEB (joint active books); to fund concurrent tender for €150 million 1 5/8% notes due October 2024, and general corporate purposes; Finland-based packaging company; pending market conditions; investor calls start Nov. 14.

Expected Fourth Quarter Business

GLOBAL AIRCRAFT LEASING CO. LTD. (GALC) and GLOBAL SEA CONTAINERS II LTD. (GSCL II): $1.95 billion five-year senior PIK toggle notes (Ba2//BB-); Rule 144A for life and Regulation S; non-callable for two years; asset sale call for up to $1 billion at 102 during non-call period; Morgan Stanley (sole); to repay Global Aircraft Leasing 6½% notes due 2024; GALC is an indirect, wholly owned subsidiary of Bohai Leasing Co., Ltd. (controlling shareholder HNA Group) which owns 70% of Avolon Holding Ltd. outstanding shares, a leading independent aircraft leasing company, GSCL II is a Bermuda registered transport and container leasing company (both GALC and GSCL II controlled by HNA Group Co., Ltd.); early guidance 11½% cash coupon, 13½% PIK coupon (up from 11% area cash, plus 200 bps PIK).

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

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

CEDAR FAIR/SIX FLAGS: $2.3 billion 364-day term loan and $800 million of revolving credit commitments to help support the merger of Cedar Fair LP and Six Flags Entertainment Corp., expected to close in the first half of 2024; debt commitment from Goldman Sachs; Sandusky, Ohio-based Cedar Fair and Arlington, Tex.-based Six Flags are amusement park operators (combined company will operate under the name Six Flags and be based in Charlotte, N.C.); disclosed in 8-K filed with SEC on Nov. 2.

HILTON GRAND VACATIONS INC.: $900 million senior secured bridge loan backing acquisition of Bluegreen Vacations for approximately $1.5 billion, including net debt, expected to close first half of 2024; financing also includes $900 million seven-year senior secured term loan; commitment from BofA, Deutsche Bank, Barclays, JPMorgan; Hilton Grand Vacations is an Orlando, Fla.-based timeshare company; Bluegreen Vacations is a Boca Raton, Fla.-based vacation ownership company; disclosed in 8-K filed with SEC on Nov. 7.

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.

Roadshow

Started Nov. 13: VERDE PURCHASER/VERITIV $600 million; Goldman Sachs

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