Delta SkyMiles sets changes; Global Medical, AmWINS, Starwood Property release price talk

By Sara Rosenberg

New York, Sept. 16 – Delta Air Lines SkyMiles on Wednesday increased the size of its term loan, lowered the spread and tightened the original issue discount.

In other news, Global Medical Response, AmWINS Group Inc. and Starwood Property Mortgage disclosed price talk with launch.

Additionally, Netsmart Technologies Inc. and Barrette [LEB Holdings (USA) Inc.] surfaced with new deal plans.

Delta SkyMiles reworked

Delta Air Lines SkyMiles raised its seven-year senior secured term loan (Baa1//BBB) to $3 billion from $2.5 billion, trimmed pricing to Libor plus 375 basis points from talk in the range of Libor plus 425 bps to 450 bps and adjusted the original issue discount to 99 from 98.5, according to a market source.

As before, the term loan has a 1% Libor floor and is non-callable for three years, then at 104 in year four and 102 in year five.

Final commitments were due at 1 p.m. ET on Wednesday, the source added.

Barclays and Goldman Sachs Bank USA are leading the loan that will be used with $6 billion of senior secured notes, upsized from $4 billion, for general corporate purposes and to support the company’s liquidity position.

Delta is an Atlanta-based airline company. SkyMiles is a newly formed bankruptcy-remote Cayman special purpose vehicle to hold all SkyMiles program collateral.

Global Medical guidance

Global Medical Response held its lender call on Wednesday and announced talk on its $1.37 billion five-year first-lien term loan (B1/B) at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due end of day on Sept. 24, the source added.

KKR Capital Markets LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $500 million of bonds to refinance an existing $1.87 billion term loan B due 2022.

Global Medical, previously known as Air Medical, is a Greenwood Village, Colo.-based provider of medical care, primarily in the areas of emergency and patient relocation services.

AmWINS OID talk

AmWINS came out with original issue discount talk of 99.27 on its fungible $100 million add-on first-lien term loan B (Ba3/B+) due Jan. 25, 2024 that launched with a call in the morning, a market source remarked.

Like the existing term loan, the add-on term loan is priced at Libor plus 275 bps with a 1% Libor floor.

The add-on term loan has 101 soft call protection for six months, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used with a $200 million unsecured debt offering and cash on hand to fund a dividend to shareholders.

Commitments and amendment signature pages are due at noon ET on Tuesday.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Starwood holds call

Starwood Property Mortgage launched with a lender call in the morning a non-fungible $200 million incremental term loan B (BB-) talked at Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance notes.

Starwood Property Mortgage is a finance company.

Netsmart readies deal

Netsmart set a lender call for 10 a.m. ET on Thursday to launch $1.015 billion of credit facilities, according to a market source.

The facilities consist of a $100 million revolver and a $915 million term loan B, the source said.

Goldman Sachs Bank USA is the left lead on the deal that will be used to repay the company’s existing first-and second-lien term loans and fund an acquisition.

Netsmart is an Overland Park, Kan.-based provider of software and technology solutions to the human services and post-acute care market.

Barrette on deck

Barrette scheduled a lender call for noon ET on Thursday to launch a $405 million seven-year covenant-lite first-lien term loan, a market source said.

The term loan has 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on Sept. 29.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund the acquisition of the company by TorQuest Partners and Caisse de depot et placement du Quebec.

Barrette is a manufacturer and distributor of wood alternative fence, railing and other outdoor living products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.