Yahoo may rethink use of cash from Alibaba deal
SAN FRANCISCO, Aug 9 Yahoo Inc may re-evaluate plans for the cash it gets from a multibillion-dollar sale of half of its 40 percent stake in Chinese Internet company Alibaba Group.
April 18 UK financial software provider Misys has launched a jumbo US$5.7bn-equivalent financing backing its merger with Canadian fintech company DH Corp, banking sources said.
The deal will bring much-desired supply to the loan market on both sides of the Atlantic during a period of subdued new issuance and rampant repricings.
The company is seeking US$4.6bn-equivalent of first-lien debt split between a seven-year US$3.12bn dollar-denominated term loan, a seven-year €1bn euro-denominated term loan and a five-year US$400m multi-currency revolver.
The dollar term loan is guided at 350bp-375bp over Libor with a 1% floor while the euro term loan is guided at 400bp-425bp over Euribor with a 0% floor. Both tranches are offered with an OID of 99-99.5.
The revolver, which includes a springing net leverage ratio, is guided at 350bp-375bp over Libor with a 0% floor at par. It also includes a 50bp undrawn fee subject to two leveraged-based step downs of 25bp on the pricing margin at 4.25 times and 3.75 times first-lien net leverage.
The first-lien debt will amortise at 1% per annum with the balance at maturity.
A US$1.15bn-equivalent eight-year second-lien portion of the financing is split between an US$850m term loan guided at 775bp-800bp over Libor and an €280m term loan guided at 725bp-750bp over Euribor.
Both tranches include 1% floors and are guided with an OID of 98.5.
Vista Equity Partners said in March it would buy DH for C$4.8bn and combine it with Misys, which abandoned plans to list on the London stock market in October 2016, blaming shaky market conditions.
LPC reported in March that banks had underwritten around US$6bn of debt financing to back Vista’s acquisition of DH Corp and to refinance existing debt as it combines DH with Misys.
Morgan Stanley, Citigroup, Barclays, Macquarie and Nomura are joint lead arrangers.
Morgan Stanley leads the dollar first-lien, Citigroup leads the euro first-lien and Barclays leads the dollar and euro second-lien. Morgan Stanley is also administrative agent.
Commitments are due on Wednesday May 3. The borrowers are Almonde, Inc, Tahoe Canada Bidco, and Misys Europe SA. (Editing by Christopher Mangham)
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