Weather lifts spread on $1 billion term loan to Libor plus 500 bps

By Sara Rosenberg

New York, May 19 – Weather Co. (TWCC Holding Corp.) increased pricing on its $1 billion first-lien term loan due February 2020 to Libor plus 500 basis points from Libor plus 425 bps, according to a market source.

Also, the original issue discount for new money was revised to 99 from 99.5 and the extension fee offered to existing lenders was changed to 100 bps from 25 bps, the source said.

In addition, the 101 soft call protection on the term loan was extended to one year from six months and the excess cash flow sweep was increased to 75%.

Furthermore, the $100 million par offer paydown is now only being offered to first-lien lenders and amounts rejected will be reallocated among non-extended lenders, the source continued. Initially, the paydown was offered as $50 million on the first-lien term loan at par and $50 million on an existing second-lien term loan at par, with any declined paydown amounts on the first-lien loan applied to the second-lien loan.

The term loan still has a 0.75% Libor floor.

Commitments are due at noon ET on Wednesday and allocations are targeted for Thursday, the source added. The original commitment deadline had been scheduled for the close of business on Tuesday.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Proceeds will be used to extend the maturity of the existing first-lien term loan by three years while increasing pricing from Libor plus 275 bps with a 0.75% Libor floor.

Weather is an Atlanta-based multi-platform media and information company focused on weather.

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