Team Health Holdings, Inc. reprices its term loan B

U.S.-based physician services provider Team Health Holdings, Inc., through its subsidiary, Team Health, Inc., refinanced its existing senior secured Term Loan (tranche B) at $1.312bn. The transaction was led by JP Morgan.

Interest rate on the amended Term Loan was Libor plus 3.00% from LIBOR plus 3.75% (floor of 75 basis points).

The loan matures on 23 November 2022. The issuance reduces the company’s annual cash interest payments by approximately $9.8m.

Source: PRNewswire

J.C. Penney to refinance $2bn loan

U.S.-based retailer J. C. Penney has mandated JPMorgan to market its $2bn sub-investment-grade loan.

Proceeds from the issuance offering would be utilized towards refinancing a substantial portion of the company’s debt, which most recently was $4.73bn as of 31 March 2016.

The loans have been rated “B1” and “B+” by Standard & Poors and Moody’s, respectively.

Interest rate on the loan is expected at a floating rate tied to Libor, translating roughly to an annual rate of 5.5%-5.8%.

Source: TheStreet.com

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

Hanjin Shipping to begin creditor-led debt restructuring

South Korea-based Hanjin Shipping reached an agreement with creditors who have agreed to offer financial assistance to the company and initiate a corporate restructuring program.

Creditor banks, led by state-run Korea Development Bank, approved Hanjin’s debt restructuring proposal at a meeting on Wednesday.

The conditions for the bailout include reduced charter rates that Hanjin pays out to foreign shipowners, retaining a global alliance membership and signing a debt restructuring agreement with bondholders.

The agreement comes days after Hanjing Shipping submitted a revised self-rescue measure to creditors on 2 May 2016.

The creditors plan to give a three-month maturity extension of principal and interest starting and roll out debt refinancing measures by hiring accounting firms.

The company plans to finalize negotiations with 22 shipowners by the end of May 2016. Further, it also plans to hold a meeting with bondholders on 19 May 2016 to extend the maturity date on KRW 35.8bn won of its bonds by four months.

Source: The Korea Herald