Constellation Brands Canada, Alliant Holdings, Calpine reveal price talk on loan deals

By Sara Rosenberg

New York, Nov. 1 – Constellation Brands Canada Inc., Alliant Holdings Intermediate LLC and Calpine Corp. released price talk on their loan transactions in connection with their lender calls/presentations on Tuesday.

And, in more primary happenings, NXT Capital Inc. surfaced with plans to bring a new credit facility to market next week.

Alliant discloses talk

Alliant Holdings held its lender call on Tuesday, launching its $1,602,550,000 senior secured covenant-light term loan due Aug. 14, 2022 with talk of Libor plus 325 basis points with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at noon ET on Friday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to combine the company’s existing $279.3 million term loan B-2 into its $1,323,250,000 term loan B and reprice the debt.

The term loan B-2 is currently priced at Libor plus 400 bps with a 1% Libor floor and will be paid out at 101 due to existing call protection, and the term loan B is currently priced at Libor plus 350 bps with a 1% Libor floor and will be paid out at par, another source added.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Constellation guidance emerges

Constellation Brands Canada came out with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $260 million seven-year covenant-light term loan B that launched with a lenders presentation in the afternoon, a source said.

In addition to the U.S. term loan B, the company is getting a C$66 million term loan B.

Commitments are due on Nov. 15, the source added.

Morgan Stanley Senior Funding Inc., Antares Capital LP, BMO Capital Markets and Scotiabank are leading the deal (Ba3) that will be used to fund the acquisition of the company by Ontario Teachers’ Pension Plan from Constellation Brands for about C$1.03 billion.

Closing is expected before year-end.

Constellation Brands Canada is a Mississauga, Ont.-based operator of wineries and Wine Rack stores.

Calpine holds call

Calpine hosted a lender call at 1:30 p.m. ET to launch a $550 million 364-day senior secured covenant-light term loan talked at Libor plus 175 bps with no Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., MUFG, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand to fund the acquisition of Noble Americas Energy Solutions LLC from Noble Group Ltd. for $800 million plus an estimated $100 million of net working capital at closing.

The company said in a news release last month that it plans to repay the bridge loan in 2017 with proceeds from asset sales and cash from operations.

Closing is expected by year-end, subject to approval by Noble Group shareholders, regulatory approvals and customary conditions.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources. Noble Americas Energy is a San Diego-based supplier of power to commercial and industrial retail customers.

NXT on deck

NXT Capital set a bank meeting for 2 p.m. ET in New York on Monday to launch a $350 million senior secured credit facility, according to a market source.

The facility consists of a $50 million revolver and a $300 million term loan B, the source said.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Corporate and credit facility ratings are B1 with a positive outlook/BB-, the source said.

NXT, a Stone Point Capital portfolio company, is a Chicago-based provider of structured financing solutions.

Expera levels emerge

Meanwhile, in the secondary market, Expera Specialty Solutions LLC’s $285 million seven-year term loan B was quoted at 99¾ bid, 100¾ offered on Tuesday after allocating on Monday, a trader said.

Pricing on the term loan B is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan B firmed at the low end of the Libor plus 475 bps to 500 bps talk.

The company’s $335 million credit facility (B2/BB-) also includes a $50 million revolver.

Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Closing is expected on Thursday.

Expera, a KPS Capital Partners LP portfolio company, is a Kaukauna, Wis.-based manufacturer of specialty paper and protective packaging products for the industrial & technical, food, and pressure-sensitive release liner segments.

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