Consolidated Communications frees up; Starwood Property loan changes surface

By Sara Rosenberg

New York, Sept. 18 – Consolidated Communications Inc. tightened the original issue discount on its term loan B and then the debt made its way into the secondary market on Friday.

The company adjusted the original issue discount on the $1.25 billion seven-year senior secured term loan B (B2/B+) to 98.5 from talk in the range of 97 to 98, according to a market source.

As before, the term loan is priced at Libor plus 475 basis points with a 1% Libor floor and has 101 soft call protection for six months.

Previously in syndication, the term loan was lifted from $1 billion as the company’s senior secured note offering was trimmed to $750 million from $1 billion.

Recommitments were due at 10 a.m. ET on Friday and the term loan broke for trading later in the day, with levels quoted at 99˝ bid, par offered, another source added.

In other news, Starwood Property Mortgage raised its non-fungible incremental term loan B to $250 million from $200 million, cut pricing to Libor plus 350 bps from Libor plus 375 bps and tightened the original issue discount to 99 from 98.5, a market source said.

Additionally, Alliance Laundry Systems and Southern Veterinary Partners LLC joined the near-term primary calendar.

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