Outlook 2014: Landmark bank deals of 2013

H.J. HEINZ CO.

Issuer:	H.J. Heinz Co.
Size/structure:	$11.5 billion credit facility (Ba2/BB/BB+) comprised of a $2 billion five-year revolver at Libor plus 200 bps; a $2.95 billion six-year term B-1 at Libor plus 225 bps, 1% Libor floor, OID 991/2, 101 soft call for one year; and a $6.55 billion seven-year term B-2 at Libor plus 250 bps, 1% Libor floor, OID 991/2, 101 soft call for two years
Lead banks:	JPMorgan, Well Fargo, Barclays and Citigroup
Proceeds:	Help fund buyout by Berkshire Hathaway and 3G Capital
• Notable because of its large size
CROSBY WORLDWIDE LTD.
Issuer:	Crosby Worldwide Ltd.
Size/structure:	$715 million senior secured credit facility comprised of a $65 million five-year revolver (B1/B); a $560 million seven-year covenant-light first-lien term loan (B1/B) at Libor plus 300 bps, step-down to Libor plus 275 bps at 4.5x net leverage,1% Libor floor, OID 99 7/8, 101 soft call for six months; and a $90 million eight-year covenant-light second-lien term loan (Caa1/CCC+) at Libor plus 600 bps, 1% Libor floor, OID 99 7/8, hard call 102, 101
Lead banks:	Morgan Stanley, UBS, KKR Capital, Deutsche Bank, Mizuho and HSBC
Proceeds:	Help fund buyout by KKR
• Notable because it was an aggressive deal that was executed well
DELL INC.
Issuer:	Dell Inc.
Size/structure:	Roughly $9 billion credit facility comprised of a $2 billion asset-based revolver; a $4.66 billion 61/2-year covenant-light term B (Ba2/BB+/BB+) at Libor plus 350 bps, 1% Libor floor, OID 99, 101 soft call for one year; a $1.5 billion five-year covenant-light term C (Ba2/BB+/BB+) at Libor plus 275 bps, 1% Libor floor, OID 991/2, 101 soft call for six months; and a €700 million 61/2-year covenant-light euro term loan (Ba2/BB+/BB+) at Euribor plus 375 bps, 1% floor, OID 99, 101 soft call for one year
Lead banks:	Bank of America, Barclays, Credit Suisse, RBC and UBS
Proceeds:	Help fund buyout by Michael Dell, founder, chairman and chief executive officer, and Silver Lake
• Notable because of its massive size
VIRGIN MEDIA INVESTMENT HOLDINGS LTD.
Issuer:	Virgin Media Investment Holdings Ltd.
Size/structure:	Roughly $3.7 billion in bank debt (Ba3/BB-) comprised of a $2,755,000,000 seven-year term B at Libor plus 275 bps, 0.75% Libor floor, OID 991/2, 101 soft call for six months; and a £600 million seven-year term B at Libor plus 375 bps, 0.75% Libor floor, OID 991/2, 101 soft call for six months
Lead banks:	Credit Suisse, BNP Paribas, Bank of America, Barclays and Deutsche Bank
Proceeds:	Help fund acquisition by Liberty Global Inc.
• Notable because it is a U.K. business doing billions of U.S. institutional term debt
BRICKMAN GROUP
Issuer:	Brickman Group
Size/structure:	$1.08 billion senior credit facility comprised of a $110 million revolver (B1/B) at Libor plus 300 bps, a $735 million seven-year first-lien term B (B1/B) at Libor plus 300 bps, step-down to Libor plus 275 bps at 4x first-lien leverage, 1% Libor floor, OID 991/2, 101 soft call for six months; and a $235 million eight-year second-lien term loan (Caa1/CCC+) at Libor plus 650 bps, 1% Libor floor, OID 991/2, call protection 102, 101
Lead banks:	Morgan Stanley, Credit Suisse, Goldman Sachs, RBC, Mizuho, KKR, Macquarie, Sumitomo and UBS
Proceeds:	Help fund buyout by KKR from Leonard Green & Partners LP and other shareholders
• Notable because "aggressive ask that saw incredible execution"
RUE21 INC.
Issuer:	rue21 inc.
Size/structure:	$688.5 million credit facility comprised of a $150 million five-year asset-based revolver and a $538.5 million seven-year term B (B3/B-) at Libor plus 462.5 bps, 1% Libor floor, OID 811/2, 101 soft call for one year
Lead banks:	JPMorgan, Bank of America and Goldman Sachs
Proceeds:	Help fund buyout by Apax Partners
• Notable because it was a committed LBO in the retail space where the company announced a horrible quarter during the marketing process and the leads didn't really have any protections in place. Likely a one-off case, but interesting to see that trade evolve and if it has any ramifications on commitment language.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.