UPC Broadband Holding Services BV has increased the dollar portion of its cross-border loan financing by $100 million at the expense of the euro tranche to leave the debt split between term loans of $1.3 billion and €400 million. Books close in the U.S. today at 11:30 a.m. ET and in Europe at 3 p.m. BST via dollar global coordinator Deutsche Bank and euro global coordinators BNP Paribas and J.P. Morgan.
The latest revisions come after the firm tightened price talk on the financing earlier today to 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, or OIDs, of 98-98.5.
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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.
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.
Proceeds support UPC's acquisition of Sunrise Communications. Liberty Global announced last week that it had agreed to make an all-cash public tender offer for all of the shares in the SIX Swiss Exchange-listed group. The take-private offer price of CHF110 per share values Sunrise at about 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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