McDermott sets further B loan changes; Townsquare Media shelves term loan repricing

By Sara Rosenberg

New York, April 3 – In the primary market on Tuesday, McDermott International Inc. modified the original issue discount on its term loan B, and Townsquare Media Inc. pulled its term loan repricing transaction as a result of general market conditions.

Also, LegalShield, Seminole Tribe of Florida, Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC), Atlantic Power Corp. and EIF Channelview Cogeneration LLC announced price talk with launch.

Furthermore, Hilton Worldwide Finance LLC, Micron Technology Inc. and Clean Harbors Inc. emerged with new deal plans.

McDermott widens OID

McDermott changed the original issue discount on its $2.26 billion seven-year first-lien term loan to 98 from revised talk of 99 and initial talk of 99.5, according to a market source.

Additionally, the ticking fee on the term loan was revised to the full margin beginning on April 18 from half the margin from days 31 to 60 and the full margin thereafter, the source said.

As before, the term loan is priced at Libor plus 500 basis points with a 1% Libor floor, and has 101 soft call protection for one year.

Previously in syndication, among other things, the term loan was upsized from a revised amount of $2.06 billion and an initial size of $2.15 billion, pricing was lifted from talk in the range of Libor plus 400 bps to 425 bps, the call protection was extended from six months and a springing maturity was added to six months inside of the six-year notes with stipulations.

Final commitments were due at 5 p.m. ET on Tuesday, the source added.

McDermott lead banks

Barclays, Credit Agricole, Goldman Sachs Bank USA, MUFG, ABN Amro, RBC Capital Markets and Standard Chartered are leading McDermott’s term loan B. Barclays is the administrative agent.

Proceeds from the loan and $1.3 billion in notes, downsized from $1.5 billion with the recent term loan upsizing, will be used to refinance existing debt, to cash collateralize letters of credit and to pay related fees and expenses.

Pro forma first-lien net leverage is 0.8 times, and total net leverage is 1.8 times.

McDermott is a Houston-based provider of integrated engineering, procurement, construction and installation, front-end engineering and design and module fabrication services for upstream field developments.

Townsquare withdrawn

Townsquare Media pulled its $282.3 million covenant-light first-lien term loan (Ba2/BB-) due April 1, 2022 that was talked at Libor plus 275 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

The source explained that the deal was shelved because of market conditions.

RBC Capital Markets LLC was leading the deal, which was going to be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

LegalShield launches

LegalShield held its bank meeting on Tuesday and announced price talk on its $550 million seven-year covenant-light first-lien term loan (B1/B) and $150 million eight-year covenant-light second-lien term loan (Caa1/B-), according to a market source.

Talk on the first-lien term loan is Libor plus 350 bps with a 25 bps step-down 0.5 times inside closing first-lien net leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $750 million of senior secured credit facilities also include a $50 million revolver (B1/B).

Commitments are due at noon ET on April 17, the source added.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., KKR Capital Markets, Capital One and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Stone Point Capital LLC from MidOcean Partners.

Closing is expected in the second quarter.

LegalShield is an Ada, Okla.-based provider of legal plans and identity theft solutions.

Seminole comes to market

Seminole Tribe of Florida held a lender call at 3:30 p.m. ET on Tuesday to launch a $1,194,000,000 term loan B (BBB) due July 6, 2024 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 12, the source said.

Bank of America Merrill Lynch and Fifth Third are leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Seminole Tribe of Florida is a Hollywood, Fla.-based Indian tribe that owns and operates gaming and resort facilities.

Authentic Brands holds call

Authentic Brands held a lender call at 2 p.m. ET on Tuesday to launch $410 million in term loans, a market source remarked.

The debt consists of a fungible $250 million covenant-light first-lien term loan (B1/B) due Sept. 29, 2024, a fungible $90 million delayed-draw covenant-light first-lien term loan (B1/B) due Sept. 29, 2024, a fungible $50 million covenant-light second-lien term loan (Caa1/CCC+) due Sept. 29, 2025 and a fungible $20 million delayed-draw covenant-light second-lien term loan (Caa1/CCC+) due Sept. 29, 2025.

Talk on the first-lien term loan debt is Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor and a discount of 99.5, the source continued.

The new and existing first-lien term loan debt will get 101 soft call protection for six months, and the second-lien term loan debt has hard call protection of 102 and then 101.

The debt has a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Authentic buying Nautica

Authentic Brands will use its new term loan debt to fund the acquisition of Nautica from VF Corp. and other upcoming acquisitions, and to put cash on the balance sheet.

Commitments are due at noon ET on April 10, the source added.

Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are leading the deal.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

Atlantic Power guidance

Atlantic Power launched on its morning call its $510 million senior secured first-lien term loan (Ba2/BB-) due April 2023 at talk of Libor of 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Existing lender commitments are due at noon ET on Friday and new money commitments are due at noon ET on April 13, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Atlantic Power is a Dedham, Mass.-based owner, developer and operator of a diversified fleet of 22 power generation projects totaling 1,440 MW of net generating capacity across nine states in the United States and two Canadian provinces.

EIF Channelview talk

EIF Channelview Cogeneration came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $275 million seven-year term loan B that launched with a morning lender call, a market source remarked.

The company’s $305 million of senior secured credit facilities also include a $30 million revolver.

Commitments are due at noon ET on April 13, the source added.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal that will be used to refinance existing debt, and a joint lead arranger with Investec Bank plc.

EIF Channelview is an 856 MW natural gas-fired combined cycle cogeneration plant located in Channelview, Texas.

Hilton readies deal

Hilton Worldwide set a lender call for 3 p.m. ET on Wednesday to launch a $3,919,000,000 covenant-light term loan B (Ba1/BBB-) due Oct. 25, 2023 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 11, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Hilton is a McLean, Va.-based hospitality company.

Micron joins calendar

Micron Technology will hold a lender call at 11 a.m. ET on Wednesday to launch a $736,875,000 senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2022.

Micron is a Boise, Idaho-based semiconductor company.

Clean Harbors on deck

Clean Harbors scheduled a lender call for 11 a.m. ET on Thursday to launch a $397 million senior secured first-lien term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan.

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

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