5 Nov, 2021

Marlink completes $525M, €250M term loans wide of talk; terms

Marlink AS has completed a $525 million dollar-denominated and €250 million euro-denominated seven-year first-lien term loan package that is being used to back the acquisition of the company by Providence Equity Partners, sources said, noting that the dollar tranche (L+475, 0.75% Libor floor) and the euro tranche (E+475, 0% floor) both priced with an original issue discount of 97. Goldman Sachs was left lead arranger on the transaction, which saw both tranches clear wide of talk. Financing will also include a $150 million multicurrency revolving credit facility, and the equity contribution was $506 million, according to a Moody's ratings report. Marlink is a global provider of business-critical satellite communications services with strong positions in maritime and enterprise satellite communications solutions.

Terms:

Borrower Marlink AS
Issue $525 million term loan B
UoP LBO
Spread L+475
Libor floor 0.75%
Price 97
Tenor 7 years
YTM 6.19%
Four-year yield 6.52%
Call protection 101 soft call for 12 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers GS/BNP/BofA/Barc/KKR/HSBC/Banque CIC
Admin agent GS
Px Talk L+450-475/0.50%/99
Sponsor Providence Equity Partners
Notes Removed 25-bps leveraged-based step-down, IPO-based step down. Ticking fee: 0 fee for first 45 days; 50% of margin days 46-75; 100% thereafter; soft call extended from 6 months.

Borrower Marlink AS
Issue €250 million term loan B
UoP LBO
Spread E+475
Libor floor 0%
Price 97
Tenor 7 years
YTM 5.39%
Four-year yield 5.73%
Call protection 101 soft call for 12 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers GS/BNP/BofA/Barc/KKR/HSBC/Banque CIC
Admin agent GS
Px Talk E+450-475/0%/99
Sponsor Providence Equity Partners
Notes Removed 25-bps leveraged-based step-down, IPO-based step down. Ticking fee: 0 fee for first 45 days; 50% of margin days 46-75; 100% thereafter; soft call extended from six months.