Travelport, Prestige Brands, Penn Engineering, NN, Medley deals emerge in secondary

By Sara Rosenberg

New York, Aug. 15 – Travelport LuxCo’s credit facility freed up for trading on Friday with the term loan B quoted above its original issue discount, and Prestige Brands Inc., Penn Engineering & Manufacturing Corp., NN Inc. and Medley LLC broke as well.

Travelport’s credit facility surfaced in the secondary market on Friday, with the $2,375,000,000 seven-year term loan B quoted at 99½ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 500 basis points with a 25 bps step-down upon a qualified initial public offering and B2/B corporate ratings. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 98¾.

Recently, the term loan was upsized from $2.3 billion, pricing was increased from Libor plus 400 bps, the grid was revised from a 50 bps step-down upon completion of a qualified initial public offering, the discount moved from revised talk of 98½ and initial talk of 99, the call protection was extended from six months, the incremental facility was cut to $300 million from $500 million with unlimited amounts at 0.25 times below the closing first-lien net leverage ratio, and the initial restricted payments baskets was reduced to $50 million from $100 million.

In addition to the term loan B, Travelport’s $2,475,000,000 facility (B3/B-) also provides for a $100 million five-year revolver.

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