High Yield Calendar: $4.13 billion, £840 million, €550 million deals being marketed

October 26 Week

PETSMART LLC and PETSMART FINANCE CORP. $2.65 billion notes: Upsized $1.5 billion senior secured noted due 2027 (B1/B), callable after three years at par plus 50% of coupon (special call for 10% of notes annually during non-call period), upsized from $1.2 billion, price talk 6½% area (initial talk mid-5% area), and $1.15 billion senior unsecured notes due 2028 (Caa1/CCC+), callable after three years at par plus 50% of coupon, price talk 9% area (initial talk 200 to 225 bps behind the secured notes); Barclays (joint books, bill and deliver), JPMorgan, Apollo, Credit Suisse, Citigroup, Jefferies, MUFG, RBC, UBS, Wells Fargo (joint books); Rule 144A and Regulation S for life; both tranches underwent covenant changes; proceeds, with $1.3 billion equity from parent, to refinance existing term loan facility, asset-based revolver, 5 7/8% notes due 2025, 8 7/8% notes due 2025 and 7 1/8% notes due 2023; Phoenix-based pet specialty retailer; books close Friday.

SMYRNA READY MIX CONCRETE, LLC: Upsized $830 million eight-year senior secured notes (B1/B+) upsized from $515 million, $315 million bank loan withdrawn; JPMorgan; non-callable for three years; to fund several pending acquisitions; Nashville-based manufacturer and retailer of ready-mixed concrete; price talk 5¾% to 6% (initial guidance 5% area); books close Friday morning, pricing thereafter.

FRANCHISE GROUP INC.: $650 million five-year senior secured notes (B1/B+); Morgan Stanley (left lead books, bill and deliver), JPMorgan, Wells Fargo, Citizens (joint books), Riley (co); Rule 144A and Regulation S for life; callable after two years at par plus 50% of coupon; to refinance debt; Virginia Beach, Va.-based multi-brand operator of franchised and franchisable businesses; roadshow Tuesday-Thursday; investor call 10 a.m. ET on Tuesday; early guidance 8¼% area; pricing expected Friday.

ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC: £840 million equivalent two-part senior secured notes due 2025 (expected ratings Caa2/CCC) in dollar-denominated notes and sterling-denominated notes, both with initial price talk in the high 8% area to 9%; JPMorgan; Rule 144A and Regulation S; notes in both tranches non-callable for two years; proceeds, together with other funds, to redeem existing senior secured notes, to repay certain other existing debt and for general corporate purposes including working capital and capital requirements; Graydon, U.K.-based luxury sports car manufacturer; pricing expected Friday.

AVANTOR FUNDING, INC. (B1/BB-/BB-) : €550 million senior first-lien notes due 2025; Goldman Sachs (left active bookrunner, bill and deliver), Citigroup (joint active bookrunner), Barclays, JPMorgan, BofA (joint books), PNC, HSBC, Jefferies (co's); Rule 144A and Regulation S; callable after two years at par plus 50% of coupon; proceeds, along new $1.35 billion term loan, borrowings under existing A/R facility and cash on balance sheet, to redeem all of its euro-denominated 4¾% notes due 2024 and dollar-denominated 6% notes due 2024; Radnor, Pa.-based provider of mission critical products and services to customers in the life sciences, advanced technologies and applied materials industries; investor call Thursday.

Pending Deals

TOTAL PLAY TELECOMMUNICACIONES, SA DE CV: Possible inaugural dollar-denominated Rule 144A and Regulation S unsecured notes offering (expected ratings B2//BB-), pending market conditions, high-yield accounts expected to be involved; Jefferies (joint global coordinator, lead joint bookrunner, bill and deliver), Barclays, Credit Suisse (joint global coordinators, lead joint bookrunners); Mexico City-based telecom; pre-marketing began Oct. 22.

SIZZLING PLATTER, LLC and SIZZLING PLATTER ISSUER CORP.: $325 million five-year senior secured notes (B3//B-); UBS (joint books, bill and deliver), Mizuho (joint books); Rule 144A and Regulation S for life; callable after two years at par plus 50% of coupon; to refinance debt; Murray, Utah-based parent company of restaurant chains; price talk 7¾% to 8% (initial talk 7¾% area).

On The Horizon

ADTALEM: $1.65 billion first-lien term loan/senior secured notes; Morgan Stanley; also $400 million revolver; to help fund its acquisition of Walden University from Laureate Education Inc., expected to close first quarter of fiscal year 2022; Adtalem is a Chicago-based workforce solutions provider. Walden University is an online health care education provider.

CINCINNATI BELL INC.: $493 million senior bridge loans, commitment from Goldman Sachs; also $1.6 billion credit facilities via Goldman Sachs, Regions, SG; to help fund acquisition of Cincinnati Bell by Macquarie Infrastructure Partners in transaction valued at $2.9 billion, expected to close first half of 2021; Cincinnati-based provider of integrated communications solutions; details from March 19 PRER14A filed with SEC.

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.

EMPIRE RESORTS INC.: $475 million senior secured notes (B+/B+); BNP Paribas (joint books, bill and deliver), Citigroup, DBS Bank; Rule 144A and Regulation S; non-callable for two years; to enhance liquidity; Monticello, N.Y.-based gaming, lodging and entertainment company indirectly owned by Malaysia-based Kien Huat Realty III Ltd. (51%) and Genting Malaysia Bhd. (49%).

NRG ENERGY INC.: $2.361 billion secured and unsecured notes to help fund its acquisition of Direct Energy from Centrica plc for $3.625 billion in an all-cash transaction expected to close by the end of 2020; Citi and Credit Suisse are financial advisors to NRG, a power producer with headquarters in Princeton, N.J., and Houston; bonds expected to come to market prior to closing.

PROVIDENCE SERVICE CORP.: $600 million 364-day senior unsecured bridge term loan at Libor plus 525 bps, 1% Libor floor, rate increases by 50 bps every three months up to specified cap, to be replaced with high yield debt possibly including senior notes, revolver, term loans, bridge loans or any combination; also $30 million five-year revolver; debt commitment from Jefferies and Deutsche Bank; to help fund acquisition of Simplura Health Group; Providence is an Atlanta-based manager of non-emergency medical transportation programs disclosed in Sept. 29 8-K.

VIRTUSA CORP.: $300 million unsecured notes; also $725 million of senior secured credit facilities; BofA, Barclays, Goldman Sachs, Deutsche Bank, HSBC and Nomura provided the debt commitment; to help fund acquisition of the company by Baring Private Equity Asia in a transaction valued at approximately $2 billion, expected to close during first half of 2021; Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services; disclosed in Oct. 7 PREM14A filed with the SEC.

Roadshows

Oct. 26-28: PETSMART $2.65 billion; Barclays

Oct. 27-29: FRANCHISE GROUP $650 million; Morgan Stanley

Pricing expected Oct. 30: SMYRNA READY MIX CONCRETE $515 million; JPMorgan

Pricing expected Oct. 30: ASTON MARTIN LAGONDA £840 million; JPMorgan.

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