Calpine, Hyperion, Carbonite free up; Consol changes emerge; Mister Car moves deadline

By Sara Rosenberg

New York, March 22 – Before freeing up for trading on Friday, Calpine Corp. firmed the spread on its term loan B-9 at the high end of guidance and Hyperion Insurance Group Ltd. modified the original issue discount on its add-on term loan B.

Another deal to make its way into the secondary market during the session was Carbonite Inc., and its term loan B was seen trading above its original issue discount.

In more happenings, Consol Energy Inc. reduced the size of its term loan B, increased pricing and widened the issue price, and Mister Car Wash Holdings Inc. accelerated the commitment deadline for its incremental first-lien term loan.

Also, Staples Inc., Lonestar II Generation Holdings LLC and Nordam Group LLC joined the near-term primary calendar.

Calpine updated, trades

Calpine set pricing on its $950 million seven-year senior secured covenant-lite term loan B-9 (Ba2/BB) at Libor plus 275 basis points, the high end of the Libor plus 250 bps to 275 bps talk, a market source said.

The term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

By late Friday, the term loan B-9 broke for trading, and levels were quoted at 99 1/8 bid, 99 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Natixis, RBC Capital Markets and SMBC are leading the deal that will be used to refinance an existing term loan B-8 due December 2019 and an existing term loan B-6 due January 2023.

Closing is expected during the week of April 1.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Hyperion revised, breaks

Hyperion tightened the original issue discount on its fungible $160 million add-on senior secured covenant-lite term loan B due Dec. 20, 2024 to 99.25 from 98.789, according to a market source.

The add-on term loan is still priced at Libor plus 350 bps with a 1% Libor floor.

On Thursday, the add-on term loan was upsized from $130 million.

Morgan Stanley Senior Funding, Barclays, J.P. Morgan Securities, RBC Capital Markets, HSBC Securities (USA) Inc. and Lloyds are leading the deal that will be placed on the balance sheet in a locked box account to fund future acquisitions.

With this transaction, lenders were offered a 25 bps amendment fee.

Commitments and consents were due at noon ET on Friday and the debt hit the secondary market in the afternoon, with levels seen at 99½ bid, par offered, a trader source added.

Closing is expected on March 29.

Hyperion is a London-based insurance intermediary group.

Carbonite tops OID

Carbonite’s credit facilities freed up as well, with the $550 million seven-year senior secured term loan B (B1/B) quoted at 99¼ bid, 100¼ offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from talk in the range of Libor plus 400 bps to 425 bps, the discount was changed from 98.5, the MFN was revised to 50 bps for life from 50 bps MFN for 12 months and applies to all pari debt including incremental equivalent, the dividend restricted payment basket was reduced to $30 million from $60 million, and the ratio baskets were changed to up to 4 times secured net leverage and up to 6 times total net leverage, from up to 4.25 times secured net leverage and up to 6.5 times total net leverage.

Carbonite funding acquisition

Carbonite will use its credit facilities, along with cash on hand, to fund the acquisition of Webroot Inc. for about $618.5 million.

Barclays, Citizens Bank, RBC Capital Markets and HSBC Securities (USA) are leading the debt financing.

Closing is expected this quarter, subject to the regulatory clearance and other customary conditions.

Pro forma net leverage will be around 4.3 times, including the benefit of identified cost synergies.

Carbonite is a Boston-based cloud-based data protection provider. Webroot is a Broomfield, Colo.-based cybersecurity company.

Consol reworked

Back in the primary market, Consol Energy scaled back its 5.5-year covenant-lite term loan B to $275 million from $300 million, raised pricing to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps and moved the issue price to 99.5 from par, according to a market source.

Additionally, the MFN all-in yield threshold was reduced to 0 bps from 50 bps, to be applied to incremental term B loans and pari passu senior secured notes, the source said.

The term loan B still has a 0% Libor floor and 101 soft call protection for one year.

As a result of the term loan B downsizing, the funded portion of pro rata debt will be increased by $25 million through the up to $400 million revolver and/or up to $100 million term loan A.

Commitments were due at 5 p.m. ET on Friday, the source added.

Consol lead banks

Citigroup Global Markets, PNC Capital Markets, Huntington Bank, Credit Suisse Securities (USA) and Merrill Lynch, Pierce, Fenner & Smith, Inc. are leading Consol’s bank deal.

The new debt will be used to amend and extend an existing term loan B priced at Libor plus 600 bps with a 1% Libor floor.

Closing is expected during the week of March 25.

Consol is a Canonsburg, Pa.-based producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal.

Mister Car accelerated

Mister Car Wash moved up the commitment deadline for its $50 million incremental first-lien term loan due Aug. 21, 2021 to 5 p.m. ET on Monday from 2 p.m. ET on Wednesday, a market source said.

Pricing on the incremental term loan matches existing term loan pricing at Libor plus 325 bps with a 1% Libor floor.

The incremental loan is talked with an original issue discount of 99.52.

Jefferies LLC is leading the deal that will be used to pay down revolver borrowings and fund cash to the balance sheet.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

Staples joins calendar

Staples scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $3.2 billion term loan, a market source remarked.

UBS Investment Bank, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA), Deutsche Bank Securities, Jeffries, KKR Capital Markets, Morgan Stanley Senior Funding and RBC Capital Markets are leading the loan.

Proceeds will be used with $750 million of other secured debt and $1,375,000,000 of unsecured debt to refinance existing debt, including $1 billion of unsecured bonds that are expected to be taken out at the make-whole provision under the existing indenture.

Pro forma adjusted net secured leverage will be 3.5 times, and total net leverage will be 4.7 times, the source added.

Staples is a Framingham, Mass.-based business supplies distributor.

Lonestar readies deal

Lonestar II Generation Holdings emerged with plans to hold a lenders’ presentation at 10 a.m. ET on Tuesday to launch $280 million of senior secured term loans, a market source said.

The debt consists of a $250 million term loan B and a $30 million term loan C, the source added.

Morgan Stanley Senior Funding is leading the deal that will be used to fund a cash collateralized letter of credit account, fund a distribution to the Lonestar Generation LLC balance sheet, and pay transaction fees and expenses.

Lonestar II Generation is the owner of a roughly 1.1 GW portfolio of three thermal power generation assets located in Texas and serving the ERCOT market.

Nordam on deck

Nordam Group set a bank meeting for Monday to launch a $240 million seven-year term loan B (B+), according to a market source.

Commitments are due on April 3, the source said.

J.P. Morgan Securities is leading the deal that will be used with an equity investment by The Carlyle Group to fund the company’s exit from Chapter 11, to repay DIP/pre-petition credit facilities and for general corporate purposes.

Closing is expected in the first half of this year, subject to Bankruptcy Court approval and satisfaction of customary conditions, including regulatory approval.

Nordam is Tulsa, Okla.-based aerospace manufacturing and repair company.

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