Terra-Gen Finance frees to trade above OID; TierPoint lifts revolver size; PSC fills out

By Sara Rosenberg

New York, Nov. 26 – Terra-Gen Finance Co. LLC’s term loan B emerged in the secondary market on Wednesday with levels quoted above its original issue discount.

Meanwhile, in the primary, TierPoint upsized its revolver, PSC Industrial Services’ credit facility was oversubscribed ahead of its commitment deadline, and Astoria Energy LLC joined the near-term calendar.

Terra-Gen breaks

Terra-Gen Finance’s $300 million seven-year term loan B (Ba3/BB-) began trading on Wednesday with levels seen at par ¼ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is soft call protection of 102 in year one and 101 in year two.

Recently, the spread on the term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount tightened from 99.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to equity owners.

Terra-Gen is a New York-based renewable energy company that owns 653 MW of generating capacity across 21 projects.

TierPoint upsizes

Moving to the primary market, TierPoint lifted its revolver to $45 million from $40 million, according to a market source.

The company’s now $465 million credit facility also includes $330 million seven-year first-lien term loan (B2/B+) and a $90 million eight-year second-lien term loan (Caa2/CCC+).

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor and was issued at a discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. This debt has hard call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was upsized from $320 million, the spread was cut from Libor plus 450 bps and the call protection was extended from six months, and the second-lien term loan was downsized from $100 million while pricing was trimmed from Libor plus 800 bps.

TierPoint buying Xand

Proceeds from TierPoint’s credit facility will be used to help fund the acquisition of Xand from ABRY Partners.

RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are leading the deal that is expected to allocate on Monday.

The company will also use incremental equity from its existing investors, which includes Cequel III management led by chairman Jerry Kent, RedBird Capital Partners, Stephens Group, Jordan/Zalaznick Advisers Inc. and Thompson Street Capital Partners, as well as a new investor, Ontario Teachers’ Pension Plan, for the acquisition.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services. Xand is a Hawthorne, N.Y.-based provider of data center, cloud and managed services.

PSC well met

PSC Industrial Services’ $180 million six-year first-lien term loan (B1/B+) and $45 million seven-year second-lien term loan (Caa1/CCC+) were both oversubscribed ahead of Wednesday’s commitment deadline, a market source said.

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98, and call protection of 102 in year one and 101 in year two.

The company’s $265 million credit facility also includes a $40 million five-year revolver (B1/B+).

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co.

First-lien leverage is less than 4 times, and total leverage is less than 5 times.

PSC is a Houston-based industrial services company that offers hydroblasting, vacuuming, grit-blasting, explosive deslagging, chemical cleaning, process dewatering and routine maintenance.

Astoria on deck

Astoria Energy set a bank meeting for 10:30 a.m. ET in New York on Dec. 3 to launch an $845 million senior secured credit facility, according to a market source.

The facility consists of a $70 million revolver and a $775 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. and Natixis Securities Americas LLC are leading the deal that will be used to repay existing debt and make a one-time distribution to the sponsors.

Astoria Energy is an owner of operating electric power generation facilities in New York.

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