VNU's $4.187 billion U.S. term loan broke at 99 3/8-99 5/8 – just under the 99.5 original issue discount that was added last week to encourage investors to sign up. Citigroup leads the deal, which is priced at LIBOR plus 2 3/4%. The loan traded actively, but did not manage to get higher than the 99 3/8-99 5/8 context where it broke.
The new credit agreement, which went out to investors last week, offered what some on the buyside described as "loose covenants," which, among other things, will allow the company to take on up to 10 times leverage. The agreement also allows the company to incur acquisition debt, which may mean the company will not de-leverage right away, according to investors.
The loan portion of the deal was reworked a number of times in order to get the deal through syndication. Deutsche Bank, which leads the bond financing, JPMorgan, ABN AMRO and ING are also participating in the financing. A VNU spokesman did not return a call. A Citigroup banker declined comment.