BASIS POINT-Terms set for Australia's Tatts A$1 bln loan
MELBOURNE, May 1 (Reuters Basis Point) - Terms have been set for a A$1 billion ($943 million) loan for Australian gaming company Tatts Group Ltds (TTS.AX: Quote, Profile, Research, Stock Buzz), sources said on Thursday.
The deal, arranged by Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz), nabCapital (NAB.AX: Quote, Profile, Research, Stock Buzz), Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) and Westpac Banking Corp (WBC.AX: Quote, Profile, Research, Stock Buzz), divides into a A$200 million one-year tranche A, a A$620 million three-year tranche B and a A$180 million five-year tranche C.
Opening margins, calculated on a leverage matrix, are 75 basis points (bp), 90bp and 105bp over BBSY for tranches A, B and C, respectively, based on a company net debt-to-EBITDA leverage of 1.5 to two times.
There are four levels of participation: Senior lead managers would receive a 30bp fee for A$150 million commitments; lead managers would get 25bp for A$100 million; managers would get 20bp for A$75 million and co-managers 15bp for A$50 million.
Responses are due in late May. Australia and New Zealand Banking group (ANZ.AX: Quote, Profile, Research, Stock Buzz) has joined as an early bird participant. The facility, which has not been underwritten by the four leads, is being sold down on a best-efforts basis.
Tatts and competitor Tabcorp (TAH.AX: Quote, Profile, Research, Stock Buzz) earlier this month lost their duopoly to supply gaming machines in Victoria state from 2012 onwards.
Tatts does not have a public rating, but has a debt profile equivalent to a BBB+ rated corporate.
The terms are as follows:
Tatts Group Ltd
Facility type: (A) Working capital facility (B,C) Term loan
Amount: A$1bn: (A)A$200m (B)A$620m (C)A$180m
Maturity: (A)1 year (B)3 years (C)5 years
Repayment: Bullet
Margin over: Debt-to-EBITDA>3 times: (A)117.5bp over
BBSY; (B)137.5bp over BBSY (C)157.5bp over
BBSY;
2.5-3 times: (A)100bp (B)117.5bp (C)135bp
2-2.5 times: (A)85bp (B)100bp (C)120bp
1.5-2 times: (A)75bp (B)90bp (C)105bp
<1.5 times: (A)67.5bp, (B)82.5bp, (C)97.5bp
Repayment: (A,B,C) Bullet
Senior lead
management fee: 30bp for A$150m
Lead management
fee: 25bp for A$100m
Management fee: 20bp for A$75m
Co-management fee:15bp for A$50m
MLAs: Commonwealth Bank of Australia, nabCapital,
Royal Bank of Scotland, Westpac Banking Corp
Status: In process, responses due end May ($1=A$1.06) (Reporting by Sharon Klyne)
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