Masorange finalizes €800 million term loan B at 99.75 OID

By Sara Rosenberg

New York, April 18 – Masorange (Lorca Finco plc) firmed the original issue discount on its €800 million seven-year covenant-lite term loan B (Ba3/BB+/BB+) at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5, according to a market source.

Pricing on the euro term loan is Euribor plus 350 basis points with a 0% floor.

The €800 million term loan size excludes a roughly €190 million pre-placed piece, the source said.

Earlier in syndication, pricing on the euro term loan was set at the low end of the Euribor plus 350 bps to 375 bps talk.

The euro term loan freed to trade on Thursday, the source added.

As previously reported, the company is also getting a $400 million seven-year covenant-lite term loan B (Ba3/BB+/BB+) priced at SOFR plus 350 bps with a 0% floor and an original issue discount of 99.75.

Both term loans have 101 soft call protection for six months.

The discount on the U.S. term loan firmed on Wednesday at the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5, and the debt freed to trade on Wednesday afternoon.

Initially, the term loan transaction was launched as a €1.5 billion equivalent U.S and euro term loan B with tranche sizes to be determined, then tranching was outlined as a minimum $400 million tranche and a minimum €400 million tranche before sizes finalized on Wednesday.

BofA Securities Inc. and BNP Paribas Securities Corp. are the joint global coordinators on the deal. BofA Securities and BNP Paribas are the physical bookrunners on the U.S. loan, and BNP Paribas, BofA Securities, BBVA and Natixis are the physical bookrunners on the euro loan. Caixa, Credit Agricole, Credit Suisse, Goldman Sachs, ING, Intesa, JPMorgan Chase Bank, Mizuho, Santander, SMBC and Societe Generale are passive bookrunners. Kroll Agency Services is the agent.

Proceeds from the term loan Bs, a €600 million private placement of five-year senior secured notes, a term loan A and cash from the balance sheet will be used to refinance the drawn facilities that funded a €6.1 billion payment upstreamed to the shareholders at closing of the formation of Masorange, a joint venture of Orange Spain and MasMovil, for general corporate purposes and to address upcoming maturities.

Masorange is a mobile and fixed telecom company in Spain.

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