High Yield Calendar: $2.1 billion deals being marketed

In The Market

ADVANTAGE SOLUTIONS INC. via ADVANTAGE SALES & MARKETING INC.: $1.145 billion high-yield notes: $345 million 6.5-year senior secured notes, initial talk mid-to-high 6% area, and $800 million seven-year senior unsecured notes, initial talk high 10% area; BofA; Rule 144A and Regulation S; both tranches non-callable for three years; proceeds, together with new term loan and revolver, and proposed equity contribution, to repay existing senior secured first-lien term loan facility and its existing senior secured second-lien facility, and fund additional cash on the balance sheet; Irvine, Calif.-based business solutions provider; roadshow started Feb. 20; pricing Feb. 24 week.

CLEVELAND-CLIFFS INC. $950 million eight-year notes: $550 million senior secured notes and $400 million unsecured guaranteed notes; Credit Suisse (left lead books), BofA, Deutsche Bank, Goldman Sachs, JPMorgan, Wells Fargo, PNC, Citigroup, Barclays, Citizens, Regions Financial, Huntington Bank, Fifth Third (joint books); Rule 144A and Regulation S; notes in both tranches callable after three years at par plus 50% of respective coupons; to refinance AK Steel's 2021 and 2023 secured notes; Cleveland-Cliffs produces iron ore pellets; AK Steel manufactures non-commoditized steel; investor call 10:30 a.m. ET on Thursday; pricing Friday.

Expected Near-term Business

BAUSCH HEALTH AMERICAS INC.: $3.25 billion two-part senior secured notes (BB): Notes due 2028, initial talk low 4% area, and notes due 2030, initial talk mid-to-high 4% area; Citigroup; proceeds plus cash on hand to refinance a term loan B due June 2025 and a term loan B due November 2025 and to redeem 6½% senior secured notes due 2022 and 7% senior secured notes due 2024; Laval, Quebec-based specialty pharmaceutical and medical device company.

High Yield Bridges

ELANCO ANIMAL HEALTH INC.: $2.75 billion bridge loans and $3.75 billion credit facilities, debt commitment from Goldman Sachs; to help fund its acquisition of Bayer AG’s animal health business, targeted to close in mid-2020; Greenfield, Ind.-based animal health company; disclosed in 8-K document filed Aug. 20 with SEC.

ELDORADO RESORTS INC.: $1.8 billion senior notes due 2028 backed by bridge loan, via JPMorgan, Credit Suisse, Macquarie, priced at Libor plus 475 bps with a 0% Libor floor, spread increases by 50 bps every three months until a specified cap is reached; also $4 billion credit facilities, debt commitment from JPMorgan, Credit Suisse, Macquarie; to help fund its acquisition of Caesars Entertainment Corp.; Eldorado is a Reno, Nev.-based gaming company, expected to close in first half of 2020; Caesars is a Las Vegas-based gaming and entertainment company.

T-MOBILE USA INC.: $27 billion bridge loans to be replaced with secured notes, unsecured notes or other financing in connection with merger of T-Mobile and Sprint Corp.: $19 billion 364-day senior secured covenant-light bridge facility (low triple B ratings expected) and $8 billion one-year senior unsecured covenant-light bridge facility ($4 billion expected to convert into eight-year debt, and $4 billion expected to convert to 10-year debt) (mid-to-high double B ratings expected), also $11 billion credit facilities; Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and RBC Capital Markets, joint lead arrangers and bookrunners on the debt (Goldman Sachs agent on the secured bridge, agent for unsecured bridge not named in the commitment letter); to refinance certain T-Mobile and Sprint debt, and for post-closing working capital for combined company; combined company will be called T-Mobile and will be based in Bellevue, Wash.; announced in April 30 8-K filing with Securities & Exchange Commission.

TALLGRASS ENERGY LP: Possible $575 million senior notes backed by $575 million one-year senior secured bridge loan priced at Libor plus 425 bps with 50 bps step-ups every three months to a specified cap, 0% Libor floor, Credit Suisse, Citigroup, Jefferies (joint bookrunners and lead arrangers) or $575 million senior secured term loan; to help fund its acquisition by Blackstone Infrastructure Partners, Enagas, GIC, NPS and USS, expected to close second quarter of 2020; Leawood, Kan.-based growth-oriented midstream energy infrastructure company; disclosed in Dec. 17 SC 13D/A filed with SEC.

WESCO INTERNATIONAL INC.: $3.125 billion senior unsecured bridge facility in connection with Wesco’s planned acquisition of Anixter, expected to close during the second or third quarter of 2020; commitment from Barclays; Wesco is a Pittsburgh-based MRO and OEM; Anixter is a Glenview, Ill.-based distributor of electrical and utility power products.

On The Horizon

ALPHA AUTO GROUP: $225 million five-year notes; JPMorgan; non-callable for two years; automotive group operates dealerships representing 14 automotive brands throughout Ontario, Alberta and Oregon.

ATLANTICA TENDER DRILLING LTD.: $140 million four-year second-lien notes; DNB, Pareto (global coordinators), Danske, SpareBank1 (joint books); also $100 million four-year first-lien term loan; to refinance bank and bond debt; Houston-based oil and gas drilling services provider; deal subject to market conditions, pre-marketing mid-to-late May.

CULLIGAN: $500 million debt financing (senior secured cash flow revolver, a senior secured term loan and/or senior unsecured notes) via Morgan Stanley, Ares, PSP, RBC, BofA and Credit Suisse; to help fund acquisition of AquaVenture Holdings Ltd. valued at about $1.1 billion, including AquaVenture’s net debt; Culligan is a Rosemont, Ill.-based provider of sustainable water solutions and services; AquaVenture is a British Virgin Islands-based developer and provider of sustainable Water-as-a-Service solutions; disclosed in 8-K filed on Dec. 26 with SEC.

DDM HOLDING AG via DDM DEBT AB: €100 million three-year secured floating-rate notes; Arctic Securities AS and ABG Sundal Collier ASA (joint lead managers); Stockholm-based investment services provider.

INTL FCSTONE: $350 million senior secured notes; to fund the acquisition of GAIN Capital Holdings, Inc. for approximately $236 million, expected to close mid-2020 (GAIN Capital's $60 million convertibles due 2020 to be repaid with cash on hand prior to closing; offer to redeem Gain Capital's $92 million convertible notes due 2022 to be made at closing); financing commitment from Jefferies; INTL FCStone is a New York City-based financial services provider; GAIN Capital Holdings is a Bedminster, N.J.-based financial services provider; details disclosed in Feb. 27 8-K document filed with SEC and Feb. 27 press release.

OBSIDIAN ENERGY LTD.: $100 million five-year senior notes; Pareto; to refinance Obsidian Energy’s existing $48 million secured notes maturing between 2020 to 2025 and for general corporate purposes; Calgary, Alta.-based oil and natural gas production company.

QMAX FINANCIAL HOLDINGS INC. (Q'MAX SOLUTIONS INC.): $225 million secured notes due 2024 (Caa2/B-); Pareto; Rule 144A and Regulation S; callable after two years at par plus 50% of coupon; two-year 35% equity clawback at par plus coupon; to help fund the upcoming acquisition of Mountain Mud, repay debt and buy out certain existing equipment leases; Houston-based multi-national oilfield services provider; roadshow mid-to-late May.

SCIENCE APPLICATIONS INTERNATIONAL CORP.: $400 million notes and $600 million term loan; Citigroup; to help fund acquisition of Unisys Federal, expected to close May 1, 2020; Reston, Va.-based technology integrator; disclosed in Feb. 6 8-K filed with SEC.

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