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UPC sets final terms on $1.3B and €400M cross-border loan tranches

UPC Broadband Holding Services BV has set final terms on its cross-border loan financing at the wider end of revised talk given earlier today. European books are closed and dollar books will close at 12:30 p.m. ET, with allocations to follow via dollar global coordinator Deutsche Bank and euro global coordinators BNP Paribas and J.P. Morgan.

Final terms leave the deal split between a $1.3 billion term loan B priced at L+350 with a 0% floor offered at 99 and a €400 million TLB at E+350 with a 0% floor at 98.5. This gives a yield of 3.97% on the dollars and 3.77% on the euros and compares with revised talk today of L/E+325-350 with a 0% floor offered at 99 and 98.5, respectively. At launch, the deal was guided as term loans of $1.2 billion and €500 million with price talk on both of 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 covenant-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 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.

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