High Yield Calendar: $475 million deals being marketed

February 10 Week

HECLA MINING CO.: $475 million eight-year senior notes (existing ratings Caa1/B-); JPMorgan (sole); SEC registered; non-callable for three years; proceeds, together with cash on hand, to redeem all outstanding 6 7/8% senior notes due 2021; Coeur d’Alene, Idaho-based silver producer; roadshow started Feb. 10; initial guidance 7½% to 7¾%; pricing Feb. 14.

ZAYO GROUP HOLDINGS INC. $3.15 billion high-yield notes: $1 billion seven-year senior secured notes (B1/B) and $2.1 billion eight-year senior unsecured notes (Caa1/CCC+); Credit Suisse, Morgan Stanley; 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 business for Feb. 10 week.

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.

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.

TALLGRASS ENERGY LP: Possible $575 million senior notes backed by $575 million one-year senior secured bridge loan priced at Libor plus 425 bps with 50 bps step-ups every three months to a specified cap, 0% Libor floor, Credit Suisse, Citigroup, Jefferies (joint bookrunners and lead arrangers) or $575 million senior secured term loan; to help fund its acquisition by Blackstone Infrastructure Partners, Enagas, GIC, NPS and USS, expected to close second quarter of 2020; Leawood, Kan.-based growth-oriented midstream energy infrastructure company; disclosed in Dec. 17 SC 13D/A filed with SEC.

WESCO INTERNATIONAL INC.: $3.125 billion senior unsecured bridge facility in connection with Wesco’s planned acquisition of Anixter, expected to close during the second or third quarter of 2020; commitment from Barclays; Wesco is a Pittsburgh-based MRO and OEM; Anixter is a Glenview, Ill.-based distributor of electrical and utility power products.

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.

CULLIGAN: $500 million debt financing (senior secured cash flow revolver, a senior secured term loan and/or senior unsecured notes) via Morgan Stanley, Ares, PSP, RBC, BofA and Credit Suisse; to help fund acquisition of AquaVenture Holdings Ltd. valued at about $1.1 billion, including AquaVenture’s net debt; Culligan is a Rosemont, Ill.-based provider of sustainable water solutions and services; AquaVenture is a British Virgin Islands-based developer and provider of sustainable Water-as-a-Service solutions; disclosed in 8-K filed on Dec. 26 with SEC.

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.

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.

SCIENCE APPLICATIONS INTERNATIONAL CORP.: $400 million notes and $600 million term loan; Citigroup; to help fund acquisition of Unisys Federal, expected to close May 1, 2020; Reston, Va.-based technology integrator; disclosed in Feb. 6 8-K filed with SEC.

Roadshow

Started Feb. 10: HECLA MINING $475 million; JPMorgan.

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