High Yield Calendar: $575 million deal being marketed

March 9 Week

DEL MONTE FOODS INC.: $575 million seven-year senior secured notes (Caa2/CCC+); JPMorgan (lead); callable after three years; to refinance the company’s capital structure; San Francisco-based food production and distribution company; roadshow through March 10; whispered to yield 11% to 12%.

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.

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.

MARTIN MIDSTREAM PARTNERS L.P.: $400 million senior secured notes due 2025; Rule 144A and Regulation S; to refinance 7¼% senior unsecured notes due 2021 and for general partnership purposes; Kilgore, Texas-based master limited partnership focused on marine transportation, terminalling, distribution and logistical services for producers and suppliers of hydrocarbon products, specialty chemicals and other liquids, primarily operating in the Gulf Coast region of the U.S.; announced in March 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.

WESCO INTERNATIONAL INC.: $2.2 billion to $2.4 billion long-term debt securities; to finance the cash portion of its acquisition of Anixter International Inc.; Barclays left lead on debt financing; company has a commitment for a $1.2 billion asset-based revolver and a $3.215 billion unsecured bridge loan; Pittsburgh-based Wesco is a distributor and provider of supply chain management services to the aerospace industry; Anixter is a Glenview, Ill.-based distributor of network & security solutions, electrical & electronic solutions and utility power solutions; disclosed in March 9 press release.

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