888 Holdings, Apex Group finalize loan terms, free to trade

By Sara Rosenberg

New York, July 8 – 888 Holdings plc (888 Acquisitions) firmed the original issue discount on its term loan B at the wide end of revised guidance before breaking for trading on Friday.

Also, Apex Group Ltd. increased the size of its incremental term loan, modified the issue price and added a ticking fee, and then the debt made its way into the secondary market in the afternoon.

888 updated

888 Holdings set the original issue discount on its $500 million six-year senior secured covenant-lite term loan B (B1/B/BB+) at 85, the wide end of revised talk of 85 to 86 and wider than initial talk in the range of 92 to 93, a market source remarked.

In addition, the company made some changes to the term loan documentation, the source continued.

As before, the term loan is priced at SOFR plus 10 basis points CSA plus 525 bps with a 0.5% floor and has 101 hard call protection for one year.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Mediobanca and Barclays are leading the deal. JPMorgan is the administrative agent.

888 hits secondary

888 Holdings’ term loan B broke for trading late in the day Friday, with levels quoted at 85 bid, 86 offered, a trader added.

The term loan will be used with existing cash reserves to help fund the recently completed acquisition of William Hill International.

Other funds for the transaction will come from a £401 million equivalent euro term loan A due 2028, a £358 million term loan A due 2028, a £150 million revolver due 2028 and €700 million of secured notes in two tranches.

Closing is expected during the week of July 18.

888 is an online betting and gaming company. William Hill International is a gaming company.

Apex tweaked, trades

Apex Group raised its non-fungible incremental term loan due July 2028 to $320 million from $300 million, changed the original issue discount to 93.5 from talk in the range of 92 to 93 and added a ticking fee of 100% of the margin plus SOFR starting 15 days after allocation, according to a market source.

Pricing on the incremental term loan remained at SOFR plus 500 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 12:30 p.m. ET on Friday and the incremental term loan began trading in the afternoon, with levels quoted at 94 bid, 95 offered, a trader added.

BofA Securities Inc. is leading the deal that will be used to help support the acquisitions of MMC Group, a provider of investment administration services in New Zealand, and the fund services and third-party management company business operations of Maitland International Holdings plc.

The MMC acquisition closed in May.

Apex Group is a financial services provider.

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