High Yield Calendar: $2.18 billion and €300 million deals being marketed

October 12 Week

CANPACK SA and EASTERN PA LAND INVESTMENT HOLDING LLC (representing CANPACK SA’s U.S. operations): $1.1 billion equivalent two-part senior notes (Ba2/BB); euro-denominated seven-year notes callable after three years at par plus 50% of coupon, price talk 2 ½% area, Citigroup global coordinator, physical bookrunner, bill and deliver, and dollar-denominated five-year notes callable after two years at par plus 50% of coupon, price talk 3 ¼% area, Wells Fargo global coordinator, physical bookrunner, bill and deliver, tranche sizes to be determined; BNP Paribas (passive books for both tranches), CaixaBank, PKO BP (co-managers for both tranches); Rule 144A and Regulation S for life; to repay certain amounts outstanding under revolver, to redeem the private placement notes and for general corporate purposes, including capital expenditure requirements to construct a new plant in Pennsylvania; metal container supplier based in Krakow, Poland; pricing Thursday.

SHIFT4 PAYMENTS, LLC and SHIFT4 PAYMENTS FINANCE SUB, INC: $450 million six-year unsecured notes; Credit Suisse (left lead), Goldman Sachs (joint books); Rule 144A and Regulation S; callable after two years at par plus 50% of coupon; proceeds, together with cash on hand, to pay off first-lien term loan, with remainder, if any, for general corporate purposes; Allentown, Pa., independent provider of integrated payment processing and technology solutions; investor call 11 a.m. ET on Monday; initial talk low 5% area; pricing end of Oct. 12 week.

PORTS AMERICA HOLDINGS, LLC and PORTS AMERICA BOND CO-ISSUER, INC.: $630 million senior secured notes due 2028; Goldman Sachs (left books), Credit Agricole, ING (joint books), SG (co); Rule 144A and Regulation S for life; non-callable for three years; proceeds, together with bridge loan, to repay term loan portion of the 2018 senior credit facility and related fees and expenses, including swap breakages fees; Jersey City-based provider of terminal and stevedore services; telephone roadshow Tuesday-Wednesday; initial price talk low 4% area; pricing later in Oct. 12 week.

UNITED NATURAL FOODS INC.: $400 million senior notes due 2028; JPMorgan; non-callable for three years; to pay down term loan; Providence, R.I.-based food wholesaler; pricing expected Thursday.

TEREOS FINANCE GROUPE: €300 million five-year senior notes (expected ratings B+/B+); BNP Paribas (sole physical books, joint global coordinator), Natixis, Rabobank (joint global coordinators), CIC, Commerzbank, ING (passive books); Rule 144A and Regulation S; callable after two years at par plus 50% of coupon; to repay upcoming loan maturities; Marckolsheim, France-based agro-industrial group; telephone roadshow Tuesday-Thursday, pricing thereafter.

LIGADO NETWORKS LLC Two-part PIK notes: Three-year PIK first-lien bullet, talked with 13% coupon including 9% PIK and 4% cash, at 96, and four-year PIK second-lien bullet, talked to come 300 bps behind the first-lien, at 96 (sizes to be determined, benchmark amounts expected); JPMorgan, Goldman Sachs, Jefferies; Rule 144A and Regulation S for life; proceeds to repay existing first-lien senior secured loan and 1.5-lien loan agreements, make $700 million payment to Inmarsat, fund up to two years interest reserve account; Reston, Va.-based satellite communications company; investor call Monday; pricing expected Wednesday.

On The Horizon

ADTALEM: $1.65 billion first-lien term loan/senior secured notes; Morgan Stanley; also $400 million revolver; to help fund its acquisition of Walden University from Laureate Education Inc., expected to close first quarter of fiscal year 2022; Adtalem is a Chicago-based workforce solutions provider. Walden University is an online health care education provider.

CINCINNATI BELL INC.: $493 million senior bridge loans, commitment from Goldman Sachs; also $1.6 billion credit facilities via Goldman Sachs, Regions, SG; to help fund acquisition of Cincinnati Bell by Macquarie Infrastructure Partners in transaction valued at $2.9 billion, expected to close first half of 2021; Cincinnati-based provider of integrated communications solutions; details from March 19 PRER14A filed with SEC.

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.

EMPIRE RESORTS INC.: $475 million senior secured notes (B+/B+); BNP Paribas (joint books, bill and deliver), Citigroup, DBS Bank; Rule 144A and Regulation S; non-callable for two years; to enhance liquidity; Monticello, N.Y.-based gaming, lodging and entertainment company indirectly owned by Malaysia-based Kien Huat Realty III Ltd. (51%) and Genting Malaysia Bhd. (49%).

NRG ENERGY INC.: $2.361 billion secured and unsecured notes to help fund its acquisition of Direct Energy from Centrica plc for $3.625 billion in an all-cash transaction expected to close by the end of 2020; Citi and Credit Suisse are financial advisors to NRG, a power producer with headquarters in Princeton, N.J., and Houston; bonds expected to come to market prior to closing.

PROVIDENCE SERVICE CORP.: $600 million 364-day senior unsecured bridge term loan at Libor plus 525 bps, 1% Libor floor, rate increases by 50 bps every three months up to specified cap, to be replaced with high yield debt possibly including senior notes, revolver, term loans, bridge loans or any combination; also $30 million five-year revolver; debt commitment from Jefferies and Deutsche Bank; to help fund acquisition of Simplura Health Group; Providence is an Atlanta-based manager of non-emergency medical transportation programs disclosed in Sept. 29 8-K.

VIRTUSA CORP.: $300 million unsecured notes; also $725 million of senior secured credit facilities; BofA, Barclays, Goldman Sachs, Deutsche Bank, HSBC and Nomura provided the debt commitment; to help fund acquisition of the company by Baring Private Equity Asia in a transaction valued at approximately $2 billion, expected to close during first half of 2021; Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services; disclosed in Oct. 7 PREM14A filed with the SEC.

Roadshows

Started Oct. 13: SHIFT4 PAYMENTS $450 million; Credit Suisse

Oct. 13-14: PORTS AMERICA $630 million; Goldman Sachs

Oct. 13-15: TEREOS €300 million; BNP Paribas

Pricing expected Oct. 15: UNITED NATURAL FOODS $400 million; JPMorgan.

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