September 4, 2018 / 1:28 PM / 3 months ago

Refinitiv launches US$8bn buyout loan

LONDON, Sept 4 (LPC) - Refinitiv, Thomson Reuters’ Financial and Risk (F&R) division, has launched price guidance on its US$8bn-equivalent term loan B after a bank meeting on Tuesday morning.

The seven-year term loan B comprises a US$5.5bn facility and a US$2.5bn-equivalent euro-denominated facility.

The dollar loan is guided at 400bp-425bp over Libor, while the euro loan is guided at 425bp over Euribor.

The dollar tranche has no floor while the euro has a 0% floor. Both are offered at a 99-99.5 OID and have six months soft call protection at 101.

Neither tranche has a financial covenant. The facility amortises 1% a year.

Leverage for the buyout is marketed at 4.25 times secured and 5.25 times unsecured on an adjusted of US$2.5bn. That includes some US$700m of cost savings and synergies from the business’s reported Ebitda of US$1.8bn.

A further bank meeting is scheduled to take place in New York on Wednesday, and commitments are due on September 17.

Bank of America Merrill Lynch, JP Morgan, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, UBS, Credit Suisse, HSBC, Deutsche Bank, Barclays, Royal Bank of Canada and Sumitomo are the lenders. BAML is left lead on both TLBs.

The deal is the largest buyout financing since the crisis and its launch has been eagerly awaited since the deal was underwritten in January.

Blackstone announced on January 30 that it was buying a 55% majority stake in Thomson Reuters’ F&R unit, which includes LPC. The unit will be renamed Refinitiv.

Expected Corporate Family Ratings are B3/B/BB, while expected secured ratings are B2/B(RR 3)/BB+ (RR 2). (Editing by Christopher Mangham)

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