Cincinnati Bell, Dimora Brands, Green Plains surface in secondary market

By Sara Rosenberg

New York, Aug. 18 – Cincinnati Bell Inc. raised pricing on its term loan B and firmed the original issue discount at the wide side of guidance, and then freed up for trading on Friday, and Dimora Brands Inc. and Green Plains Inc. hit the secondary market too.

Cincinnati Bell lifted pricing on its $600 million seven-year covenant-light term loan B to Libor plus 375 basis points from talk of Libor plus 325 bps to 350 bps, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and removed the MFN sunset, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The term loan has a ticking fee of half the spread from days 31 to 60 and the full spread plus the greater of three month Libor or the Libor floor thereafter.

The company’s $800 million of senior secured credit facilities (Ba3/BB-) also include a $200 million five-year revolver priced at Libor plus 375 bps with a 0% Libor floor.

The revolver was upsized from $180 million and pricing flexed up from talk of Libor plus 325 bps to 350 bps with a 0% Libor floor.

Recommitments were due at 10 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., PNC Bank, Regions Bank, Barclays, Citigroup Global Markets Inc. and Citizens Bank are leading the deal.

Cincinnati frees up

With final terms in place Cincinnati Bell’s credit facilities broke for trading, with the term loan B quoted at 99¼ bid, 99¾ offered, a trader added.

Proceeds will be used to help fund the acquisitions of Hawaiian Telcom Inc. and OnX Enterprise Solutions and refinance debt at Cincinnati Bell and Hawaiian Telcom.

Hawaiian Telcom is being bought for about $650 million and OnX is being purchased for around $201 million in cash. Hawaiian Telcom shareholders will have the option to elect either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each share of Hawaiian Telcom, subject to proration such that the aggregate consideration to be paid to Hawaiian Telcom shareholders will be 60% cash and 40% Cincinnati Bell common stock.

Closing on the credit facilities is expected on Oct. 2.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions. Hawaiian Telcom is a Honolulu-based provider of integrated communications, broadband, data center and entertainment solutions. OnX is a Toronto-based technology service and solution provider.

Dimora hits secondary

Dimora Brands’ bank debt freed to trade too, with the $255 million seven-year covenant-light first-lien term loan seen at 99½ bid, par ½ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 400 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.

The company is also getting a $50 million eight-year second-lien term loan priced at Libor plus 850 bps with a 1% Libor floor and issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

The company is owned by the Jordan Co.

Dimora lead banks

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are leading Dimora’s term loans.

During syndication, pricing on the first-lien term loan firmed at the low end of the Libor plus 400 bps to 425 bps talk, and the second-lien term loan was downsized from $65 million, pricing was flexed up from talk of Libor plus 800 bps to 825 bps and the discount widened from 98.5.

Also during syndication, the 12 month MFN sunset was eliminated so that the 50 bps MFN is for life, and it is applicable for debt maturing within 24 months of initial term loans versus 12 months, the incremental secured net leverage ratio was revised to 6 times from 6.25 times, the incremental maturity carve-out was removed, the available amount grower prong was removed, the EBITDA adjustment time horizon was modified to 18 months from 24 months and pro forma price increases plus new contracts was removed.

Dimora, formerly known as Top Knobs, is a Dallas-based designer, distributor and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

Green Plains begins trading

Green Plains’ $500 million six-year term loan B (B2/BB-) broke for trading, with levels quoted at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 hard call protection for 18 months.

During syndication, the spread on the loan firmed at the high end of the Libor plus 500 bps to 550 bps talk, the call protection was modified from a 101 soft call for six months and the MFN sunset was removed.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt.

Green Plains is an Omaha-based ethanol production, marketing and commodities company.

On Assignment above par

Also in trading, On Assignment Inc.’s $594 million term loan B was quoted at par ¼ bid, par ¾ offered after breaking for trading on Thursday, a market source said.

Pricing on the loan is Libor plus 200 bps with no Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with no Libor floor.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions.

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