Brazil’s Petrobras to raise bonds to buyback existing debt

Brazilian state owned oil & gas explorer Petrobras is planning to issue new bonds to buy back $3.5bn of its existing debt.

The company plans on buying back $576m of its outstanding bonds paying 8.375% due 2018 at a small premium.

Further, the company plans on issuing a waterfall tender to purchase up to $3bn of existing debt due next year.

The purchase offer expires on 14 June 2016.

Petrobras has about $13.2bn of debt maturing this year and c.$28.5bn due in the next two years.

Sources: WSJ

Cengage eyes $1.59bn loan for debt repayment and dividend recap

U.S.-based higher education publisher is seeking to raise a $1.59bn term loan B, as well as $740m in senior unsecured debt, proceeds of which would be used to refinance approximately $2bn of existing secured debt and fund a shareholder dividend.

Morgan Stanley, Credit Suisse,  BMO Capital Markets, Citigroup,, Goldman Sachs, Wells Fargo, Deutsche Bank, and KKR Capital Markets are arranging the loan.

Source: Leveraged Loan

Moody’s assigns a Baa3 rating to Dell’s proposed secured notes

Moody’s assigned a provisional rating of Baa3 to Dell Inc.’s proposed senior secured notes.

The debt is being issued by Diamond 1 Finance Corporation (“Finco 1”) and co-issuer Diamond 2 Finance Corporation (“Finco 2”), which are entities that will merge into Dell International LLC (a debt issuing subsidiary of Dell Inc.) and EMC Corporation (“EMC”), respectively, upon closing of the Dell EMC merger.

Post closing of the transaction, Dell International and EMC will assume all of Finco 1’s and Finco 2’s obligations under these notes.

The Dell – EMC merger is expected to close by the end of October 2016.

Source: Moody’s

Noble Group to raise $3bn debt at higher interest rates

According to sources, Noble Group is planning to raise up to $3bn in bank debt as part of its refinancing plan outlined earlier.

Noble could pay an interest rate of 225 basis points over the U.S. dollar Libor on a $1 billion one-year unsecured loan, more than twice the 85 basis points it paid just a year ago.

Further, Noble’s credit facility of about $2 billion would be backed by trade flows and inventories, with an announcement expected this week.

The number of lead arrangers on the unsecured loan was eight banks, which compared with 15 on a loan last year.

According to sources, Societe Generale, Mitsubishi UFJ Financial Group, ING and HSBC were among the lead arrangers on the transaction. 

The debt issuance is part of the company’s Chief Executive Yusuf Alireza’s plan to sell assets, cut business lines and trim debt.

Source:  Reuters

Moody’s rates Kraft’s debt at Baa3

Moody’s assigned a credit rating of Baa3 to a total of USD 5bn senior unsecured notes offered by Kraft Heinz Foods Company.

The bonds were issued in separate 10-year and 30-year tranches.

Proceeds from the offerings would be used primarily to call a portion of the company’s $8 billion 9% preferred stock, callable 6 June, 2016. The rating outlook is stable

Source: Moody’s Rating Report

Dell finalizes $16bn of investment-grade debt

According to sources, computer manufacturer Dell plans to issue about $16bn of secured bonds to finance its $67bn acquisition of data storage products manufacturer EMC.

Dell would upsize the issuance further depending on investor appetite. The company could downsize the $8bn term loan B that backs the debt of c. $49bn financing the acquisition, if investor demand is sufficient.

The company is also in talks with banks to upsize its $7bn term loan A which is part of the debt financing the acquisition.

Pricing of the 3-year term loan A was 200bps over Libor and that for the 5-year term loan B was 250bps over Libor.

Debt of $49.5bn outlined to finance the acquisition comprised of a $8bn Term Loan B, $3.5bn of term loan A1 and A2, a $2.5bn acquisition facility and $3bn revolver.

Further, $16bn of secured notes, $9bn of unsecured notes and a $4.9bn bridge financing facility are also part of the debt financing the acquisition.

Source: Reuters




Astrazeneca prices €2.2bn MTN

Pharma major AstraZeneca Plc priced its euro medium-term notes at an aggregate price of €2.20bn ($2.53bn).

Proceeds from the issuance would be utilized for general corporate purposes and repayment of debt. 

The debt was issued in three tranches which are as follows:

  • €500m, five-year, fixed rate notes with a coupon of 0.25%,
  • €900m,  eight-year fixed rate notes with a coupon of 0.75%, and
  • €800m, twelve-year fixed rate notes with a coupon of 1.25%.

The notes would be issued to institutional investors outside the U.S., the company said.

Source: Nasdaq

Yum! Brands to issue $2.3bn of debt

Yum! Brands, Inc. the parent company of popular brands such as KFC, Pizza Hut and Taco Bell,  on Thursday, announced that it planned on issuing the following fixed rate debt:

  • $800m senior secured notes, paying 3.382%;
  • $500m senior secured notes paying 4.377%;
  • $1bn senior secured notes paying 4.97% 

Interest would be paid on a quarterly basis on the notes.

Althought the legal final maturity date of the notes is May 2046, the anticipated repayment dates of the $800m notes, the $500m and the $1bn notes would be 4, 7 and 10 years, respectively. 

Further, the company also intends to issue a $100m Series 2016-1 Class A-1 Note, to facilitate borrowing from time to time on a revolving basis.

The debt would be issued by the company through a privately placed securitized transaction.

Proceeds from the issuance would be utilised towards repayment of its entire outstanding balance of $2.0bn on its unsecured term loan facility.

The closing of the sale of debt is expected on 11 May 2016.

Source: Businesswire

Travelodge to issue £360m high yield debt

Discount hotel-chain operator Travelodge Plc is looking to price the year’s first sterling high-yield bond. Previous issuance was last conducted in November 2015.

Investors were demanding a higher premium for the £360m seven-year senior secured debt, which, according to sources, could be priced at a high-8% yield on the fixed-rate tranche and 700 to 750bp over Libor on the floating-rate tranche.

Goldman Sachs and Barclays are the global coordinators on the transaction, which is scheduled to price later this week. 

Source: Reuters

McDonald’s issues EUR 2.5bn MTN; rated BBB+

McDonald’s Corp.’s multi-tranche debt issuance was assigned a credit rating of BBB+ by Fitch Ratings, with a negative outlook. The EUR2.5bn issuance includes four-year, seven-year, and twelve-year fixed-rate senior unsecured notes.

The issued notes, which rank pari passu with the company’s existing debt, are being issued under its global medium-term notes program dated 13 November 2014.

The notes do not include financial covenants. Proceeds would be utilized for general corporate purposes, inclusive of share repurchases.

Source: Businesswire