High Yield Calendar: $1.9 billion in the market

Sept. 26 Week

CONNECT HOLDING II LLC (BRIGHTSPEED): $1.865 billion senior secured notes due 2029 (B2/B+); Barclays (left books, bill and deliver), BofA, BNP Paribas, Credit Suisse, Morgan Stanley, Goldman Sachs, MUFG, BMO, Deutsche Bank, Citigroup, RBC, Mizuho (joint books); Rule 144A for life; non-callable for three years (special call allows issuer to redeem 10% of notes annually at 103); proceeds plus new $1 billion term loan A and $2 billion term loan B to support the carve-out acquisition of Lumen Technologies’ incumbent local exchange carrier (ILEC) assets and all associated operations across 20 states by Apollo Global Management, Inc.; Brightspeed, a broadband and telecom services provider, will be based in Charlotte, N.C.; small group investor calls Sept. 19-28; global investor call 11 a.m. ET on Sept. 20; pricing expected late Sept. 26 week; initial talk 8% coupon at a discount to yield 10%.

HOUSE OF HR via VILLA DUTCH BIDCO: €425 million seven-year senior secured notes (B2/B); JPMorgan (global coordinator, bill and deliver), Barclays, SG (global coordinators); Rule 144A and Regulation S; non-callable for three years; to fund the acquisition of a 55% stake in House of HR by Bain Capital, and refinance debt; Roeselare, Belgium-based provider of human resources services; started Sept. 26.

Oct. 3 Week

LATAM AIRLINES GROUP SA: $1.5 billion two-part senior secured notes – five-year notes with two years of call protection and seven-year notes with three years of a call protection; JPMorgan; to repay debtor-in-possession loans in connection with bankruptcy restructuring, and for general corporate purposes; also $750 million term loan B; Santiago, Chile-based airline holding group; roadshow started Sept. 22; pricing expected in Oct. 3 week; initial guidance heard in low 13% area for five-year notes and low-to-mid 13% area for seven-year notes.

Expected Post-Labor Day Business

PEGASUS MERGER CO. (TENNECO INC.): $3 billion high-yield notes – $2 billion secured notes with early guidance in the 10% area and $1 billion unsecured notes with early guidance 250 basis points to 300 bps behind the secured notes; also $2.4 billion term loan; to help fund acquisition of Tenneco by Apollo (enterprise value approximately $7.1 billion), expected to close during second half of 2022 and refinance some existing debt; also $1.65 billion of equity; Skokie, Ill.-based aftermarket auto components supplier; pre-marketing was underway during July 4 week; bond and loan syndication efforts delayed into post-Labor Day period due to market conditions.

NIELSEN HOLDINGS PLC: Bond offerings to reduce or take out $2 billion secured bridge loan and $2.15 billion unsecured bridge loan; also $9.15 billion secured credit facilities via BofA Securities, Barclays, Mizuho, Credit Suisse, Citigroup, HSBC, KKR, Nomura, Ares, BMO, Goldman Sachs, Jefferies, Macquarie, Morgan Stanley, RBC, Truist, BNP Paribas, CIBC, Fifth Third, MUFG; to help fund buyout by Evergreen Coast Capital Corp. and Brookfield Business Partners LP; New York-based provider of audience measurement, data and analytics; expected post-Labor Day business.

NES FIRCROFT BONDCO AS (NES FIRCROFT): $300 million senior secured sustainability-linked notes due 2026 (B2/B); ABG Sundal Collier, Pareto Securities; to repay bank debt; U.K.-based staffing services company focused on the energy sector.

On The Horizon

ACURIS FINANCE US, INC. and ACURIS FINANCE SARL, doing business as ION ANALYTICS: $850 million equivalent eight-year senior secured notes (expected ratings B2/B) in tranches of dollar-denominated notes, price talk 6% area (initial talk low-to-mid 6% area), and euro-denominated notes, price talk 4¾% area (initial talk mid-to-high 4% area) tranche sizes to be determined (expected $500 million and $350 million equivalent euro); UBS (left books), BNP Paribas (joint books); Rule 144A and Regulation S for life; notes in both tranches callable after two years at par plus 50% of respective coupons; to refinance debt incurred in the Backstop acquisition, to fund a dividend for repurchase of shares from certain minority shareholders in one or more parent companies, to partially prepay amounts drawn under the credit facility and for general corporate purposes; London-based market analytics and data provider (delayed as of Jan. 28).

MONEYGRAM INTERNATIONAL INC.: $500 million unsecured bridge loan and $800 million senior secured credit facilities, debt commitment from Goldman Sachs, Deutsche Bank and Barclays; proceeds plus $810 million equity to fund the buyout of MoneyGram, a Dallas-based digital P2P payments company, by Madison Dearborn Partners LLC; disclosed in 8-K filed with the SEC on Feb. 16.

TEGNA INC.: $1.496 billion senior secured bridge loan and $2.715 senior unsecured bridge loan; also $4 billion senior secured credit facilities; debt commitment from RBC, BofA, Goldman Sachs, Truist, BNP, Credit Suisse, Jefferies, Mizuho, TD, Barclays, Deutsche Bank, MUFG, Citizens, SMBC; to help fund its acquisition by Standard General LP, expected to close in second half of 2022; Tysons, Va.-based media company; information disclosed in PREM14A filed on March 25 with SEC.

Bridge Loans

JETBLUE AIRWAYS CORP.: $3.5 billion senior secured bridge loan to help fund its acquisition of Spirit Airlines Inc., adjusted enterprise value of $7.6 billion, expected to close no later than 2024 first half; debt commitment from Goldman Sachs, BofA, BNP Paribas, Credit Suisse, Credit Agricole, Natixis, Sumitomo, MUFG; New York-based air carrier; disclosed in 8-K filed with SEC on July 28.

OPEN TEXT CORP.: $2 billion bridge loan at SOFR plus 375 bps, stepping up by 50 bps every 90 days up to a specified total cap, to be to be reduced by proceeds of debt securities offerings; Barclays, BMO, RBC, Citigroup; to fund acquisition of Micro Focus, implied enterprise value of approximately $6 billion expected to close in first quarter of 2023, also to repay Micro Focus debt (transaction will also include $1.3 billion cash, $600 million draw on revolver and $2.585 billion term loan); Open Text is a Waterloo, Ont.-based software provider of business-to-business cloud integration services, Micro Focus is a Newbury, England-based enterprise software company; disclosed in 8-K document filed with SEC on Aug. 25.

SEMTECH CORP.: $1.151 billion 364-day bridge loan to help fund its acquisition of Sierra Wireless Inc., enterprise value approximately $1.2 billion, expected to close in Semtech's fiscal year 2023; commitment from JPMorgan; Semtech is a Camarillo, Calif.-based supplier of semiconductors and advanced algorithms; Sierra Wireless is a British Columbia-based Internet of Things solutions provider; disclosed in 8-K filed with SEC on Aug. 3.

Roadshows

Started Sept. 22: LATAM AIRLINES $1.5 billion; JPMorgan

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