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UPC tightens talk on cross-border term loan financing

UPC Holding B.V. has tightened price talk on the cross-border loan financing that includes $1.2 billion and €500 million tranches backing its takeover of Sunrise Communications. Books close today at 11:30 a.m. ET in the US and 3 p.m. BST in Europe via dollar global coordinator Deutsche Bank and euro global coordinators BNP Paribas and J.P. Morgan.

The debt is due January 2029, and it is split between a term loan B-1 issued via Newco Financing Partnership and a TLB-2 via UPC Financing. The TLB-1 and TLB-2 will be allocated and trade as strips in each currency.

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Following today's revisions, price talk is guided at L+325-350 with a 0% floor offered at 99 on the dollars, and E+325-350 with a 0% floor at 98.5 on the euros. This suggests a yield of 3.71%-3.97% on the dollars and 3.51%-3.77% on the euros. At launch, both currencies were guided at L/E+350, with 0% floors and original issue discounts of 98-98.5.

Both tranches carry six months of 101 soft-call protection, and are cov-lite.

BofA Securities, Citi, Credit Suisse, Goldman Sachs, and Scotia Bank are also joint bookrunners on the deal alongside the three global coordinators.

Liberty Global announced last week that it had agreed to make an all-cash public tender offer for all of the shares in SIX Swiss Exchange-listed Sunrise Communications Group. The take-private offer price of CHF110 per share values Sunrise at around CHF5 billion (€4.65 billion), with a total enterprise value of CHF6.8 billion. This represents around 7.5x adjusted EBITDA, according to the firm’s statement.

Liberty Global will fund the takeover through roughly CHF3.5 billion of cash of its balance sheet, alongside the new financing. The firm is targeting a leverage of around 5x, the statement adds.

Sunrise will be merged with UPC, a subsidiary of Liberty Global providing video, broadband internet, and telephone and mobile services in Europe. The combination of the two companies will create one of the largest mobile, TV and broadband providers in Switzerland, while also boosting the firms' B2B operations.

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