Commentary & Deal Flow

Verisure (VERISR) EUR2.420bn equivalent (EUR/SEK) 144A/Reg S 3-part. List Lux. NY law. No reg rights. Settles T+5 (01/22).

Verisure Holding AB (publ) EUR1.150bn fixed rate sr sec 1st priority notes due 2027 (6y). NC2 (MWC B+50bp) (50%,25%,par). Equity claw: 2y 40%. Special call: 10% per year the first 2 years at 103. Expect B1/B (stable/stable). Via JPM sole physical books (B&D)/BofA/DG/GS/MS/Nomura joint glocos/Barc/BNP/Caixa/Citi/CA/CS/Nordea/Santander joint books. Denoms: 100x1. IPT: 3.50%-3.75%.  Px talk: 3.25%-3.50%.

Verisure Midholding AB (publ) EUR1.270bn equivalent (EUR/SEK) sr notes 2-part.

- EUR TBA fixed rate sr notes due 2029 (8y). NC3 (MWC B+50bp) (50%,25%,par). Equity claw: 3y 40%. Special call: 10% per year the first 3 years at 103. Expect Caa1/CCC+ (stable/stable). Via GS (sole physical books, B&D)/BofA/DB/JPM/MS/Nomura joint glocos/Barc/BNP/Caiza/Citi/CA/CS/Nordea/Santander joint books. Denoms: 100x1. IPT: 5.50%-5.75%. Px talk: 5.25%-5.50%.

- SEK TBA sr FRN due 2029 (8y). NC3 (MWC S+50bp), then at 102, 101, par. Equity claw: 3y 40%. Special call: 10% per year the first 3 years at 103. Expect Caa1/CCC+ (stable/stable). Via GS (joint physical books, B&D)/BofA/DB/JPM/MS/Nomura joint glocos/Nordea (joint physical books)/Barc/BNPP/Caixa/Citi/CA/CS/Santander joint books. Floats/pays quarterly vs 3mo STIBOR (0% floor). Denoms: 1,250x10. IPT: N/A. Px talk: S+575-600bp.

Did investor call at 11am UKT yesterday, small group meetings following. Books close at 10m UKT tomorrow. Pricing tomorrow (01/15). UOP: along with EUR2bn term loan B. to redeem its EUR1.08bn 5.75% sr notes due 12/01/23 (callable at 101.438) and SEK1.65bn (approx EUR164m) sr FRN due 12/01/23 (callable at 101), repay EUR1.492bn sr term loan B1-E, make EUR1.6bn distribution to shareholders, fees and expenses. Equity sponsors: Hellman & Friedman, Eiffel (GIC), Alba. Biz: Leading European provider of professionally monitored alarm systems, primarily for residential and small business customers. HQ: Geneva, Switzerland.