Forward calendar: Loan pipeline steady as opportunistic deals step up

The forward calendar for the European leveraged loan market stands at €8.89 billion this week, of which €3.08 billion is institutional debt. This is up slightly from the €8.32 billion reported last week.

Joining the pipeline this week is a new €500 million term loan B from German university group IU Group NV, which will be used to refinance existing debt and pay a dividend to shareholders. The deal will launch alongside a €50 million multicurrency revolver at a bank meeting on Nov. 16, and commitments are due Nov. 30.

Ardian-backed logistic services provider Staci has announced that it will be raising a €65 million fungible add-on to its outstanding €248 million term loan B to support a refinancing of drawings under its revolver and an equity bridge of €15 million. The new debt will also fund the acquisition of Base Logistics Group. Syndication is expected soon.

Those close to the deal have suggested that the financing backing the acquisition of U.K. supermarket chain Wm Morrison Supermarkets PLC by Clayton, Dubilier & Rice is expected at the back end of the month. The debt is expected to include a £1.1 billion term loan B and £900 million term loan B1, alongside £2.4 billion-equivalent in secured bonds, £1 billion-equivalent in unsecured notes, and a £1 billion revolver.

Out to market
Already out to market are transactions totaling €4.95 billion, not including repricings.

The largest single-tranche buyout facility seen in the market in more than a year is now out to syndication from T-Mobile Netherlands, backing its acquisition by Apax and Warburg Pincus. The facility is guided at E+400 with a 0% floor offered at 99.5, to yield 4.15%. Commitments are due Nov. 18.

Investors also have until Nov. 18 to respond to a repricing request and a €150 million fungible add-on from research data company NielsenIQ. The issuer is repricing its outstanding dollar- and euro-denominated term loans due March 2028, shaving the margin on the facilities to L/E+375 with a 0% floor, from L/E+400. The repriced and upsized debt is talked at 99.875-100, suggesting a yield of 3.80%-3.83% on the existing €545 million facility and a €150 million add-on, and of 4.03%-4.05% on the outstanding $945 million dollar tranche. Proceeds from the add-on will be used to repay debt drawn under the revolver and add cash to the balance sheet.

Commitments are also due Nov. 18 for a cross-border financing package supporting the takeover of Ultra Electronics Holdings by Advent-backed defense firm Cobham. Both the euro- and dollar-denominated facilities, rated B-/B1, are guided at E/L+375-400, offered at 99.5. The €475 million euro piece is talked with a 0% floor to yield 3.89%-4.15%, while the $855 million dollar tranche will have a 0.5% floor to yield 4.41%-4.67%.

Kraton Corp. is out to market with a $950 million-equivalent, cross-border term loan backing DL Chemical’s acquisition of the specialty chemicals group. The split between the tranches is yet to be decided, but investors have been told to expect a euro facility of roughly €300 million. Both the dollar- and euro-denominated tranches of the seven-year facility are guided at L/E+350-375 with an offer price of 99.5. The dollar piece has a 0.5% floor to yield 4.15%-4.41%, while the euro portion has a 0% floor, yielding 3.63%-3.89%. Commitments here are due Nov. 18.

Rounding up the deals, packaging technology firm Syntegon is out to market with a €1.03 billion term loan B that will be used to refinance outstanding payment-in-kind debt and fund a shareholder distribution. The B/B2 rated issuer has talked the new debt at E+400-425 with a 0% floor at 99.5, suggesting a yield of 4.15%-4.41%. Commitments are due Nov. 19.