High Yield Calendar: $4.48 billion deals being marketed

October 12 Week

LIGADO NETWORKS LLC $3.85 billion two-part PIK notes: $2.85 billion non-callable three-year PIK first-lien notes talked with 15½% coupon, all PIK, at par (earlier guidance 13% coupon including 9% PIK and 4% cash, at 96), also $1 billion non-callable 3.5-year (from four-year) PIK second-lien notes talked with 17½% coupon, all PIK, at 75 (earlier talk 300 bps behind first-lien at 96; 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; pricing expected Friday.

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.

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.

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