By Paul A. Harris
Portland, Ore., Jan. 25 – United Group priced €1.25 billion of high-yield notes in three tranches on Wednesday, according to market sources.
The deal included €950 million of seven-year senior secured notes (B2/B) in fixed- and floating-rate tranches.
A downsized €300 million tranche of 6¾% fixed-rate notes priced at par to yield 6.749%. The tranche size decreased from €350 million. The yield came inside of yield talk in the 7% area. Initial talk was in the low-7% area.
An upsized €650 million tranche of seven-year senior secured floating-rate notes priced with a 425 basis points spread to Euribor, with no floor, at par. The tranche size increased from €600 million with the shift of proceeds from the fixed-rate secured notes. The spread came at the tight end of the 425 bps to 450 bps spread talk (initial talk was 450 bps to 475 bps). The price came at the rich end of the 99.5 to par price talk (initial talk was 99.5).
Issuing entity Summer BidCo BV priced a €300 million tranche of 10%/10¾% five-year pay-if-you-can PIK notes (B-) at par with a cash yield of 10% and a PIK yield of 10¾%. The PIK yield priced inside of PIK yield talk in the 11% area (initial guidance was 11¼% to 11½%). The price came at the rich end of the 99 to par price talk.
JPMorgan was physical bookrunner on all three tranches. Joint bookrunners were BNP Paribas, Citigroup, Credit Agricole CIB, Goldman Sachs, ING, Intesa, KKR, Mizuho, Morgan Stanley, Raiffeisen Bank and UniCredit.
The Amsterdam-based telecom plans to use the proceeds to repay fixed- and floating-rate notes due 2026 and to repay debt under its revolver.
In addition to the three tranches described above, United Group launched another €480 million tranche of floating-rate notes on Thursday.
| Issuer: | United Group BV
|
| Amount: | €950 million
|
| Issue: | Senior secured notes
|
| Maturity: | Feb. 15, 2031
|
| Physical bookrunner | JPMorgan (billing and delivery)
|
| Joint bookrunners: | BNP Paribas, Citigroup, Credit Agricole CIB, Goldman Sachs, ING, Intesa, KKR, Mizuho, Morgan Stanley, Raiffeisen Bank and UniCredit
|
| Trade date: | Jan. 24
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody’s B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Fixed-rate notes
|
| Amount: | €300 million, decreased from €350 million
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield to maturity: | 6.749%
|
| Spread: | 455 bps
|
| Call protection: | Three years
|
| Price talk: | 7% area
|
|
|
| Floating-rate notes
|
| Amount: | €650 million, increased from €600 million
|
| Coupon: | Three-month Euribor plus 425 bps
|
| Floor: | 0%
|
| Price: | Par
|
| Call protection: | One year
|
| Price talk: | Euribor plus 425 bps to 450 bps at 99.5
|
|
|
| Holdco PIK notes
|
| Issuer: | Summer BidCo BV
|
| Amount: | €300 million
|
| Issue: | Senior holdco pay-if-you-can PIK notes
|
| Maturity: | Feb. 15, 2029
|
| Physical bookrunner: | JPMorgan (billing and delivery)
|
| Joint bookrunners: | BNP Paribas, Citigroup, Credit Agricole CIB, Goldman Sachs, ING, Intesa, KKR, Mizuho, Morgan Stanley, Raiffeisen Bank and UniCredit
|
| Cash coupon: | 10%
|
| PIK coupon: | 10¾%
|
| Price: | Par
|
| Cash yield: | 10%
|
| PIK yield: | 10¾%
|
| Call protection: | One year
|
| Trade date: | Jan. 24
|
| Settlement date: | Feb. 5
|
| Rating: | S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11% PIK yield at 99 to par
|
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