Published on 9/21/2023 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Worldpay sells secured notes due January 2031 in two parts
By Paul A. Harris
Portland, Ore., Sept. 21 – Dealers priced approximately $2.9 billion equivalent of senior secured notes due Jan. 15, 2031 (Ba3/BB/BBB-) that came in support of the Worldpay buyout, according to market sources.
An upsized $2.175 billion tranche of GTCR W-2 Merger Sub LLC notes priced at par to yield 7½%, at the tight end of 7½% to 7 5/8% price talk (initial guidance was in the high 7% area). The dollar-denominated tranche increased from $2 billion.
A downsized £600 million tranche of GTCR W Dutch Finance Sub BV notes priced at par to yield 8½%, at the tight end of the 8½% to 8 5/8% price talk (initial guidance was in the high-8% area). The sterling-denominated tranche decreased from £700 million.
Proceeds plus $5.2 billion and €500 million of new term loans, and sponsor equity, will be used to help fund the acquisition by GTCR of a 55% stake in the company from Fidelity National Information Services Inc. (FIS) in a transaction that values the business at $18.5 billion. FIS will receive upfront net proceeds of about $11.7 billion and will retain the remaining 45% stake in the company.
Worldpay is a Cincinnati-based provider of payment processing solutions.
| Issuer: | Worldpay
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| Maturity: | Jan. 15, 2031
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| Issue: | Senior secured notes
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| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., UBS Securities LLC, Fifth Third Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., Citizens Capital Markets Inc., Lloyds Securities Inc., MUFG Securities Americas Inc., Stifel Nicolaus & Co. Inc. and Truist Securities Inc.
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| Trade date: | Sept. 20
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| Settlement date: | Oct. 4
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| Ratings: | Moody’s: Ba3
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| S&P: BB
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Roadshow
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| Dollar notes
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| Amount: | $2.175 billion, increased from $2 billion
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| Left bookrunner: | JPMorgan
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 313 bps
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| First call: | Jan. 15, 2027 at 103.75
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| Special call: | Issuer may redeem 10% of notes annually at 103 during non-call period
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| Price talk: | 7½% to 7 5/8%
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| Sterling notes
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| Amount: | £600 million, decreased from £700 million
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| Left bookrunner: | Goldman Sachs
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| Coupon: | 8½%
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| Price: | Par
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| Yield: | 8½%
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| Spread: | 436 bps
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| First call: | Jan. 15, 2027 at 104.25
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| Special call: | Issuer may redeem 10% of notes annually at 103 during non-call period
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| Price talk: | 8½% to 8 5/8%
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