Zayo loan dips; Pinnacle moves deadline; PGT, American Renal, Gray Television set talk

By Sara Rosenberg

New York, Jan. 11 – Zayo Group LLC’s term loan B headed lower in the secondary market during Monday’s session after the company launched a new term loan B-2 to investors.

And, over in the primary market, Pinnacle Foods Inc. accelerated the commitment deadline on its incremental term loan, PGT Inc. and American Renal Holdings Inc. released price talk on their loans with launch, and Gray Television Inc. came out with guidance on its incremental term loan ahead of its upcoming bank meeting.

Zayo’s term loan B dropped by about half a point in trading on Monday to 97¾ bid, 98¼ offered in reaction to news that the company is seeking to take on additional debt in the form of a new $400 million covenant-light term loan B-2 (Ba2) due May 6, 2021, according to a trader.

Talk on the term loan B-2, which was launched to investors in the morning, is Libor plus 375 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, another source remarked.

A quick turnaround is being sought on the new loan, with commitments due at noon ET on Tuesday.

Morgan Stanley Senior Funding Inc. is leading the term loan B-2 that will be used to fund previously announced acquisitions.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

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