Consolidated Aerospace frees up above issue price; TerraForm sets spread, starts trading

By Sara Rosenberg

New York, Aug. 11 – Consolidated Aerospace Manufacturing LLC’s credit facility made its way into the secondary market on Tuesday, with the term loan quoted above its original issue discount.

Also, TerraForm AP Acquisition Holdings LLC (TerraForm Private LLC) finalized pricing on its term loan B at the high end of guidance and then the debt broke for trading late in the session.

In more happenings, Sterigenics International Inc. joined this week’s new issue calendar with plans for an add-on term loan.

Consolidated Aerospace breaks

Consolidated Aerospace’s credit facility freed up for trading on Tuesday, with the $240 million seven-year covenant-light term loan quoted at 99¾ bid, par ¼ offered, a source remarked.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the wide end of the Libor plus 350 bps to 375 bps talk.

The company’s $265 million credit facility (BB-) also includes a $25 million five-year revolver.

Citizens Bank is leading the deal that will be used to refinance existing debt.

Consolidated Aerospace is a Fullerton, Calif.-based manufacturer of components principally for the aerospace industry.

TerraForm firms, trades

TerraForm AP Acquisition came out with final pricing of Libor plus 400 bps on its $280 million seven-year senior secured term loan B (Ba2/B+) that had been talked at Libor plus 375 bps to 400 bps, a source remarked.

As before, the term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

With final terms in place, the term loan B emerged in the secondary market late day, with levels quoted at 99¼ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the loan that will be used to fund the acquisition of Atlantic Power wind assets.

TerraForm is a Bethesda, Md.-based renewable energy company.

Sterigenics on deck

In other news, Sterigenics set a call for 10 a.m. ET on Wednesday to launch a $50 million add-on term loan, according to a market source.

Talk on the add-on loan is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and an original issue discount of 99.25 to 99.5, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and acquisitions.

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

Mohegan closes

Mohegan Tribal Gaming Authority completed its fungible $90 million add-on term loan, a news release said.

Pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor, in line with the existing term loan, and it was sold at an original issue discount of 99.05, after widening during syndication from 99.5.

Citizens Bank led the deal.

Proceeds were used to partially refinance the company’s 11% senior subordinated notes due 2018.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

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