Altice USA, Dealogic, Frontera, SeaWorld, EmployBridge break; Red Ventures sets terms

By Sara Rosenberg

New York, Oct. 11 – Altice USA Inc. finalized pricing on its term loan B at the low side of talk and Dealogic firmed dollar and euro tranche sizes under its first-lien term loan, and then both of these deals made their way into the secondary market on Thursday.

Also, Frontera Generation Holdings LLC increased the size of its incremental term loan B and set the issue price at the tight end of guidance before freeing up for trading, and SeaWorld Entertainment Inc. and EmployBridge LLC broke as well.

In more happenings, Red Ventures LLC finalized pricing on its term loan B at the tight side of talk, and Allied Universal Holdco LLC accelerated the commitment deadline on its incremental first-lien term loan.

Furthermore, Dawn Acquisition LLC (AT&T colocation business), CPA Global and Surgery Partners Inc. revealed price talk with launch, and Thor Industries Inc., Aspen Dental Management Inc. and HealthChannels (ScribeAmerica Intermediate Holdco LLC) emerged with new deal plans.

Altice firms, trades

Altice USA set the spread on its $1,275,000,000 7.25-year term loan B at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps talk, a market source said.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.75, 101 soft call protection for six months and a ticking fee of half the margin for days 46 to 60 and the full margin thereafter.

After terms finalized, the loan broke for trading and levels were seen at 99 7/8 bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance Suddenlink’s term loan B due 2025.

Altice USA is a broadband communications and video services provider.

Dealogic updated, frees up

Dealogic set the breakdown of its $641 million equivalent first-lien term loan (B3) due December 2024, with the U.S. tranche sized at $300 million and the euro tranche sized at €293.7 million, a market source said.

Pricing on the term loan debt is still Libor/Euribor plus 325 bps with two 25 bps step-downs based on leverage, a 1% floor and a par issue price, and the debt still has 101 soft call protection for six months.

Previously in syndication, pricing on the dollar and euro term loans was reduced from Libor/Euribor plus 350 bps and the step-downs were added.

The debt hit the secondary market in the afternoon, with the U.S. term loan quoted at par bid, par 3/8 offered, another source added.

UBS Investment Bank is leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 400 bps with a 1% floor.

Dealogic is a New York and London-based provider of data and analytics, market intelligence and capital markets software solutions for financial institutions.

Frontera tweaked, breaks

Frontera Generation raised its incremental covenant-light term loan B due May 2, 2025 to $75 million from $65 million and firmed the issue price at par, the tight end of the 99.75 to par talk, according to a market source.

The incremental loan is still priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection for six months.

In the afternoon, the incremental loan began trading, with levels quoted at par ½ bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund cash to the Lonestar Generation LLC balance sheet and to pay transaction fees and expenses.

In conjunction with the incremental loan transaction, the company is amending its existing credit agreement and lenders were offered a 25 bps consent fee.

Closing is expected during the week of Oct. 15.

Frontera is a gas turbine power generation facility located in Mission, Texas.

SeaWorld tops OID

SeaWorld Entertainment’s fungible roughly $544 million add-on term loan B-5 (B2) broke as well, with levels quoted at par bid, par 3/8 offered, a trader said.

The add-on term loan B-5 is priced at Libor plus 300 bps with a 0.75% Libor floor and was sold at an original issue discount of 99.875. This tranche has 101 soft call protection for six months.

During syndication, the discount on the loan was tightened from talk in the range of 99.25 to 99.5.

J.P. Morgan Securities LLC is leading the deal that will be used to pay down an existing term loan B-2.

In connection with the term loan B-5, the company sought an amendment and offered lenders a 12.5 bps consent fee.

SeaWorld is an Orlando, Fla.-based theme park operator.

EmployBridge levels emerge

EmployBridge’s $479 million covenant-light first-lien term loan B (B3/B-) due April 2025 freed to trade too, with levels quoted at par ¼ bid, 101 offered, a market source remarked.

The loan allocated late Wednesday, but break levels did not surface until Thursday morning, the source added.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

EmployBridge is an Atlanta-based provider of staffing services.

Red Ventures sets spread

Back in the primary market, Red Ventures firmed pricing on its $1,885,000,000 covenant-light term loan B (B1//BB) due Nov. 8, 2024 at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, according to a market source.

Of the total term loan B amount, $250 million is a fungible incremental tranche that has an original issue discount of 99.75 and the remainder is a refinancing of the existing term loan B that has a par issue price, which is in line with talk at launch.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Allocations are expected on Friday, the source said.

Bank of America Merrill Lynch, Barclays, Fifth Third, PNC, MUFG, Regions, Capital One, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal.

The incremental term loan B will be used to retire the existing second-lien term loan in its entirety.

Red Ventures is a Fort Mill, S.C.-based technology-enabled customer acquisition platform.

Allied Universal accelerated

Allied Universal moved up the commitment deadline on its $800 million incremental first-lien term loan (B2/B-/BB) due July 28, 2022 to noon ET on Monday from 5 p.m. ET on Tuesday, a market source said.

Talk on the incremental term loan remained at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Societe Generale, ING, Natixis and PNC are leading the deal that will be used with equity to fund the acquisition of U.S. Security Associates for about $1 billion.

Closing is expected by the end of the year, subject to customary regulatory approvals.

Allied Universal is a Santa Ana, Calif.-based contract security services company. U.S. Security is a Roswell, Ga.-based provider of security and related services.

Dawn reveals guidance

Dawn Acquisition held its bank meeting on Thursday and announced talk on its $550 million seven-year first-lien term loan at Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $600 million of credit facilities (B2/BB-) also include a $50 million five-year revolver.

Commitments are due at 5 p.m. ET on Oct. 25, the source said.

Barclays, Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the acquisition of AT&T’s data center colocation operations and assets by Brookfield Infrastructure for $1.1 billion.

Closing is subject to customary closing conditions, including regulatory approvals.

Dawn is a full-service colocation provider with a scaled portfolio of owned and leased data center facilities and related infrastructure assets.

CPA discloses talk

CPA Global came out with original issue discount talk of 99.5 on its $120 million incremental term loan that launched with a lender call during the session, a market source remarked.

Like the existing term loan, the incremental loan is priced at Libor plus 325 bps with a 0% Libor floor.

Commitments are due on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used for acquisition financing.

CPA is an Intellectual Property management and technology services company.

Surgery Partners holds call

Surgery Partners hosted a lender call on Thursday to launch a $115 million incremental term loan talked with an original issue discount of 99.5 to 99.75, according to a market source.

The incremental term loan is priced in line with the existing term loan at Libor plus 325 bps with a 1% Libor floor.

Commitments are due on Wednesday, the source said.

Jefferies LLC is leading the deal that will be used to fund an existing pipeline of potential transactions and replenish proceeds from previous acquisitions.

Surgery Partners is a Nashville-based healthcare services company.

Thor coming soon

Thor Industries will hold a bank meeting in London on Monday and a bank meeting in New York on Tuesday to launch a $1,866,000,000 seven-year term loan B (Ba2/BB) and a €350 million seven-year term loan B (Ba2/BB), a market source remarked.

J.P. Morgan Securities LLC, Barclays, BMO Capital Markets, U.S. Bank and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Erwin Hymer Group SE for about €2.1 billion in cash and equity.

Closing is expected near year-end, subject to customary conditions, including regulatory and other necessary approvals.

Elkhart, Ind.-based Thor Industries and Bad Waldsee, Germany-based Erwin Hymer are manufacturers of recreational vehicles.

Aspen Dental on deck

Aspen Dental Management set a lender call for 10 a.m. ET on Friday to launch an $868 million term loan B (B2/B), a market source said.

Commitments are due at 5 p.m. ET on Oct. 19, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B from Libor plus 325 basis points with a 0% Libor floor.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

HealthChannels readies loan

HealthChannels scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a fungible $135 million incremental first-lien term loan due April 2025, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 450 bps with a 0% Libor floor, and has 101 hard call protection that expires in 2019.

Jefferies LLC and Capital One are leading the deal, which will be used to fund the acquisition of PhysAssist Scribes, a Fort Worth, Texas-based provider of medical scribes to hospitals and medical practices.

HealthChannels is a Fort Lauderdale, Fla.-based medical scribing, care coordination and real-time coding services company.

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