High Yield Calendar: $1.23 billion deals being marketed

January 27 Week

CASTLE US HOLDING CORP. (CISION): $300 million eight-year senior notes; BofA (joint books, with others to be announced); Rule 144A and Regulation S for life; non-callable for three years; to fund a dividend; Chicago-based provider of public relations products and services; roadshow through Jan. 27 week; investor call 12:30 p.m. ET on Jan. 27; initial talk low 8% area.

DT ISSUER LLC (DEALER TIRE LLC): $350 million senior notes due 2028 (expected ratings: Caa1/CCC); JPMorgan; Rule 144A; non-callable for three years; to help fund acquisition of Dent Wizard International Corp., with any remaining proceeds for working capital and general corporate purposes; Cleveland-based company manages tire and parts programs representing various automotive OEM brands; initial talk 8¾% to 9%; pricing expected Wednesday.

AG ISSUER, LLC, to be merged with and into ADVISOR GROUP INC.: $575 million senior secured notes due 2028; BofA Securities (left books), UBS, Barclays, Deutsche Bank, Goldman Sachs, SunTrust Robinson Humphrey, BMO, Credit Suisse (joint books); Rule 144A and Regulation S; callable after three years at par plus 50% of coupon (special call enables issuer to redeem 10% of notes annually at 103 during non-call period); proceeds, along with equity contribution and $200 million term loan B facility, to be used in connection with the acquisition of Ladenburg Thalmann Financial Services Inc., with any remaining proceeds for general corporate purposes; independent financial advisers with headquarters in Phoenix; roadshow started Jan. 27-31.

Expected January Business

INNOPHOS: $300 million eight-year senior notes; RBC; also $125 million asset-based revolver and $415 million term loan (RBC left lead, KeyBanc, Barclays joint books, bank meeting Jan. 22) also $306 million equity; to fund the buyout of Innophos Holdings Inc., a Cranbury, N.J.-based producer of food additives, by One Rock Capital.

High Yield Bridges

ADVISOR GROUP: $775 million secured bridge loan; UBS, BofA, Barclays, Deutsche Bank, Goldman Sachs (joint); to help fund its acquisition of Ladenburg Thalmann Financial Services Inc., expected to close in the first half of 2020; Advisor Group is a Phoenix-based network of independent financial advisers; Ladenburg is a Miami-based diversified financial services company.

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.

INNOPHOS HOLDINGS INC.: $300 million senior secured notes and $540 million senior secured credit facilities; to help fund buyout by One Rock Capital Partners LLC, expected in the first quarter of 2020; Cranbury, N.J.-based producer of essential ingredients; disclosed in Nov. 14 PREM14A filed with SEC.

MATCH GROUP: $500 million new debt to help fund its separation from IAC, expected to close second quarter of 2020; Dallas-based provider of dating products.

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.

ZAYO GROUP HOLDINGS INC.: $2.775 billion senior unsecured bridge loan and $6.74 billion senior secured credit facilities; debt commitment from Credit Suisse, Morgan Stanley, Citigroup, Deutsche Bank, SunTrust, TD; to help fund LBO by Digital Colony Partners and the EQT Infrastructure IV fund, expected to close in the first half of 2020; Boulder, Colo.-based provider of mission-critical bandwidth to companies; possible post-Labor Day business.

Roadshow

Jan. 27 week: CISION $300 million; BofA.

Jan. 27-31: ADVISOR GROUP $575 million; BofA.

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