Genoa sets bank meeting; Sinclair launches $350 million loan; prices firm in quiet market

By Paul A. Harris

Portland, Ore., April 6 – Cash loans were up 1/8 point during the Easter Monday session.

“Things were really quiet but the market was strong,” a trader remarked.

“Things were better bid.

“CLOs were buying, but volumes are not what they were a couple of weeks ago.”

Allison Transmission’s add-on first-lien term loan B-3 (Ba2/BB+/BB) due Aug. 23, 2019 was par bid, 100½ offered on Monday, unchanged on the day but up from the reoffer price, the trader said.

The $470 million was priced 99¾. It allocated on March 31.

The LCDX 22 index of bank loan credit default swaps closed up ¼ point at 102½ bid, 103½ offered, according to a hedge fund manager.

In a quiet primary market Sinclair Television Group, Inc., a wholly owned subsidiary of Sinclair Broadcast Group, Inc., held a bank meeting for a $350 million incremental term loan B.

And Genoa, A QUO Healthcare Co., LLC announced a Wednesday bank meeting for a $470 million credit facility, including a $265 million seven-year first-lien covenant-light term loan and a $155 million eight-year second-lien covenant-light term loan, with hard calls at 102 in year one and 101 in year two.

Sinclair launches term loan

Sinclair Television Group held a Monday bank meeting for a $350 million incremental term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

The loan is in the market with spread talk of Libor plus 275 basis points and a 75 bps Libor floor.

The deal comes with six months of soft call protection at 101.

The Baltimore-based television company plans to use the proceeds to repay its existing revolver and for general corporate purposes.

Intertain hikes talk

Intertain Group Ltd. increased spread talk on its $335 million seven-year first-lien covenant-light term loan (B2/B+) to Libor plus 650 bps from 500 to 525 bps, according to a market source.

The 1% Libor floor remained unchanged.

The original issue discount, meanwhile, deepened to 98 from 99.

Commitments were due at the Monday close.

Macquarie Capital (USA) Inc. is the arranger on the deal.

Proceeds will be used to help fund the acquisition of Gamesys’ business-to-consumer assets for £425.8 million.

The transaction covers the real money Jackpotjoy brands in the United Kingdom and Sweden, Star Spins, the Spanish operation Botemania, along with the social gaming Jackpotjoy and Starspins brands.

Pro forma leverage is 3 times, and net leverage is 2.3 times, the source added.

Intertain is a Toronto-based owner of a variety of bingo-led and other market-leading business to-consumer-assets.

Genoa sets bank meeting

Genoa plans to roll out a $470 million credit facility at a Wednesday bank meeting, according to a market source.

The institutional portions of the deal include a $265 million a seven-year first-lien covenant-light term loan, with six months soft call protection at 101, and a $155 million eight-year second-lien covenant-light term loan, with hard calls at 102 in year one and 101 in year two.

Commitments are due on April 21.

Credit Suisse Securities (USA) LLC is leading the deal, which also includes a $50 million revolver.

Pricing and credit ratings remain to be determined.

Proceeds will be used to fund the LBO of the Gresham, Ore.-based behavioral health specialty pharmacy company by Advent International and Nautic Partners.

Longview upsizes

Longview Power LLC upsized its six-year term loan B to $300 million from $250 million, according to a market source.

Spread talk on the loan tightened to 600 bps from earlier talk of 625 to 650 bps, and final price talk saw the discount trimmed to 99 from 98. The Libor floor remains unchanged at 1%.

The term loan B has 101 soft call protection for one year and amortization of 1% per annum.

Also included in the deal is a 100% excess cash flow sweep.

Recommitments are due Tuesday.

Along with the term loan B, the $325 million senior secured credit facility (B2/BB-) provides for a $25 million five-year revolver.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are the leads on the deal that launched with a bank meeting on Wednesday.

Proceeds will be used as exit financing to provide for distributions under the company’s reorganization plan, to complete repairs to the Longview Power Facility and for working capital. The additional proceeds resulting from the $50 million upsizing of the term loan will be used to return capital to investors.

Longview Power is a Maidsville, W.Va.-based integrated power generation enterprise. The company filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

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