High Yield Calendar: $2.93 billion deals being marketed

October 21 Week

LIBERTY CABLEVISION OF PUERTO RICO LLC/LCPR SENIOR SECURED FINANCING DAC: $1 billion eight-year senior secured notes due 2027 (B1); JPMorgan; non-callable for three years; to fund the acquisition of AT&T’s wireless and wireline assets in Puerto Rico and the U.S. Virgin Islands; San Juan, Puerto Rico-based cable and wireless operator; pricing expected Oct. 14 week; initial guidance 7% area.

VIRGIN AUSTRALIA HOLDINGS LTD.: $400 million five-year senior notes (B2/B+); Morgan Stanley (left books), UBS, HSBC (joint books); Rule 144A for life and Regulation S; make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable; to help fund acquisition of 34.82% stake in Velocity Frequent Flyer, with any surplus proceeds for general corporate purposes; Brisbane-based airline; roadshow Oct. 17-22; initial price talk 8% area.

FOXTTROT ESCROW ISSUER, LLC and FOXTROT ESCROW CORP. to be merged with an into FXI HOLDINGS, INC. $775 million seven-year senior secured notes; Jefferies, Barclays, SunTrust, Deutsche Bank (joint); Rule 144A and Regulation S for life; non-callable for three years; to partially fund the acquisition of Innocor, Inc.; Media, Pa.-based polyurethane foam producer; roadshow started Oct. 15; initial price talk 11½% to 12%; pricing middle of Oct. 21 week.

KANTAR $750 million notes: SUMMER (BC) HOLDCO B $250 million equivalent euro-denominated senior seven-year secured notes (B1/B), and SUMMER (BC) HOLDCO A $525 million equivalent euro-denominated eight-year senior unsecured notes (Caa1/CCC+); Morgan Stanley (sole physical books, global coordinator, bill and deliver), Goldman Sachs, BofA (global coordinators, passive bookrunners), Barclays, Credit Suisse, Deutsche Bank, HSBC, Mizhuo, NatWest, Nomura, RBC (passive bookrunners); Rule 144A and Regulation S; both tranches non-callable for three years; to fund buyout by Bain Capital; London-based interdisciplinary networking services provider; roadshow Oct. 7 week.

Expected Fourth Quarter Business

CENTENE CORP.: $8.35 billion senior unsecured bridge loan; Barclays; to help fund acquisition of WellCare Health Plans Inc., expected to close in first half of 2020; Centene is a St. Louis-based provider of services to government sponsored and commercial health care programs; WellCare is a Tampa, Fla.-based provider of government-sponsored managed care services; a portion of the bridge expected to be taken out with bonds, in possible post-Labor Day transaction.

HESS MIDSTREAM PARTNERS LP: $500 million senior notes and $1.4 billion credit facilities; to help fund its acquisition of Hess Corp.’s and Global Infrastructure Partners’ ownership interests in Hess Infrastructure Partners LP, valued at about $6.2 billion, expected to close in fourth-quarter 2019; Houston-based midstream company; information disclosed in Oct. 4 8-K.

PRESIDIO INC.: $1,775,000,000 high-yield bonds and bank loans, includes $400 million of senior notes or an unsecured bridge facility and $1,375,000 of senior secured credit facilities; Citigroup, JPMorgan, RBC, BofA, MUFG; to help fund the buyout of Presidio by BC Partners; New York-based IT solutions provider; expected late September or early October business.

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.

High Yield Bridges

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.

PENN NATIONAL GAMING INC.: $840 million senior unsecured bridge loan, also $1.14 billion in incremental senior secured term loans; debt commitment from BofA Securities, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Wells Fargo Securities LLC, Citizens Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC; to finance the acquisition of Pinnacle Entertainment Inc., expected to close in the second half of 2018; Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations; Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

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.

UGI ENERGY SERVICES LLC: $700 million bridge facility; Credit Suisse; to help fund its acquisition of Columbia Midstream Group LLC for about for about $1.28 billion, expected to close in fourth fiscal quarter of 2019; UGI is a King of Prussia, Pa.-based distributor and marketer of energy products and services; information disclosed in July 3, 2019 press release.

VICI PROPERTIES 1 LLC: $4,763,125,000 of bridge loans; Deutsche Bank; company intends to issue senior unsecured notes, obtain term loans, potentially in the form of an incremental term loan, and/or sell equity securities; to fund the acquisition of land and real estate assets associated with Harrah’s New Orleans, Harrah’s Laughlin, and Harrah’s Atlantic City and modify certain provisions of the existing Caesars Entertainment Corp.; New York-based experiential real estate investment trust; disclosed in June 24 8-K filed with SEC.

WESCO AIRCRAFT HOLDINGS INC. $1,375,000,000 bridge loans: $800 million senior secured bridge loan and $575 million senior unsecured bridge loan; also $1,175,000,000 of senior secured credit facilities; BofA provided debt commitment; to help fund buyout of Wesco Aircraft by Platinum Equity; high-yield bonds to replace bridge expected in third or fourth quarter of 2019.

WINNEBAGO INDUSTRIES INC.: $290 million bridge via Goldman Sachs, Bank of Montreal, BMO, expected to be taken out by means of five-year senior secured notes, non-callable for two years; initial bridge rate Libor plus 650 bps, subject to 50 bps step-up after 90 days, with additional 50 bps for each additional 90 days thereafter subject to a bridge cap; to finance acquisition of acquisition of Newmar Corp., expected to close by Jan. 31, 2020; Winnebago is a Forest City, Iowa-based manufacturer of recreational vehicles; disclosed in Sept. 16 8-K filing.

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.

CALPINE CORP.: $1.4 billion bonds and $600 million bank loan; to fund capital expenditures related to the Geysers geothermal renewable energy project in northern California; San Jose, Calif.-based power generator; heard Dec. 11, 2018 from market sources.

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.

DIAMONDBACK ENERGY INC.: Expected high-yield notes; to help fund $9.2 billion acquisition of Energen Corp., expected to close in fourth quarter 2018; Citigroup is financial adviser to Diamondback, JPMorgan and Tudor Pickering Holt are exclusive financial advisers to Energen.

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.

Roadshows

Pricing Oct. 14 week: LIBERTY CABLEVISION OF PUERTO RICO $1 billion; JPMorgan

Started Oct. 15: FXI HOLDINGS $775 million; Jefferies, Barclays, SunTrust, Deutsche.

Starts: Oct. 17: VIRGIN AUSTRALIA HOLDINGS $400 million; Morgan Stanley.

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