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Yahoo launches term B and high-yield style loan at Libor plus 600 bps
By Sara Rosenberg
New York, July 8 – Yahoo (Verizon Media) announced price talk on its $750 million six-year term loan B and $750 million six-year high-yield style term loan B with its lender call on Thursday, according to a market source.
Talk on the term loan B and on the high-yield style term loan B is Libor plus 600 basis points with a 0.75% Libor floor and an original issue discount of 98, the source said.
The term loan B has 101 soft call protection for six months, and the high-yield style term loan B is non-callable for two years, then callable at par plus 50% of the margin in year three and callable at par plus 25% of the margin in year four.
Also, the term loan B has amortization of 5% per annum, and the high-yield style term loan B has no amortization.
The company’s $1.65 billion of credit facilities also include a $150 million five-year revolver.
RBC Capital Markets, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Jefferies LLC are the lead arrangers on the deal.
Commitments are due at noon ET on July 21, the source added.
Proceeds will be used with $500 million of privately placed HoldCo notes to help fund the buyout of Verizon Media by Apollo Global Management Inc. from Verizon for $4.25 billion in cash and preferred interests of $750 million. Verizon will receive and retain a 10% stake in the company.
Verizon Media will be known as Yahoo at the close of the transaction.
Closing is expected in the second half of this year, subject to certain closing conditions.
Yahoo is a technology and media company comprised of brands such as Yahoo and AOL.
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