Commentary & Deal Flow

Stonegate Pub Company Financing 2019 PLC (STGATE) approx GBP1.225bn equivalent (GBP/EUR) 144A/Reg S sr sec fixed/floating 2-part. B3/NR/B+ (stable/--/stable). Via Barc/GS/Nomura joint glocos/DB/Lloyds/Rabo joint books. No reg rights. NY law. List ISE.

- GBP950m fixed rate notes due 2025 (5y). NC2 (MWC G+50bp) (50%, 25%, par). Equity claw: 2y 40%. Px talk: 8.00%-8.25%.

- EUR300m (approx GBP275m equivalent) FRN due 2025 (5y). NC1 (MWC B+50bp (101, par). Px talk: 7.25%-7.50% yield.

Did investor call at 3pm UKT 07/20, 1x1 calls 07/20-23. Books close at 9am UKT tomorrow. Pricing tomorrow. UOP: repay in full its GBP950m bridge loan and GBP275m of the GBP475m sr term loan incurred to fund the acquisition of Ei Group for 285p in cash or GBP1.265bn total equity (GBP3.01bn enterprise value) that closed 03/03/20 (the acquisition funding also included GBP400m 8y 2nd lien notes placed in Sept 2019 and $500m 8% 5y 1st lien notes placed in June 2020). Equity sponsor: TDR capital. Biz: largest pub company in the UK. HQ: Luton, UK.