Seadrill, Mediacom free to trade; Bayonne Energy Center, Equinox Holdings modify deals

By Sara Rosenberg

New York, June 18 – Seadrill Operating LP raised the size of its add-on term loan, set the original issue discount at the tight end of guidance and then made its way into the secondary market on Wednesday, and Mediacom’s new term loans began trading too.

Moving to the primary, Bayonne Energy Center LLC upsized its term B while tightening the spread and offer price, and Equinox Holdings Inc. revised the discount on its add-on loan.

Also, Learfield Communications Inc. released offer price talk on its add-on first-lien term loan with launch, and QoLmeds/Genoa Healthcare and Ascend Learning surfaced with new deal plans.

Seadrill tweaked, trades

Seadrill upsized its add-on term loan B (Ba3/BB-) due February 2021 to $1.1 billion from $1 billion and firmed the original issue discount at 98½, the low end of the 98 to 98½ talk, according to a market source.

Pricing on the add-on is in line with the existing term loan B at Libor plus 300 basis points with a 1% Libor floor, and all of the debt has 101 soft call protection through February 2015.

Recommitments were due at 11 a.m. ET on Wednesday, and with final terms in place, the deal allocated and freed up for trading in the afternoon with levels seen in the secondary at 99 bid, 99½ offered, another source said.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt associated with West Auriga and West Capricorn.

To accommodate the add-on, the company is amending its existing $1.8 billion term loan, and, in return lenders are getting a 12.5 bps consent fee.

Seadrill is an Oslo-based provider of offshore drilling services to the oil and gas industry.

Mediacom frees up

Mediacom’s term loans broke for trading on Wednesday, with the $250 million three-year term loan I at Mediacom Broadband quoted at 99¾ bid, par ¼ offered, the $300 million seven-year term loan J at Mediacom Broadband quoted at par bid, par ½ offered, and the $350 million seven-year term loan G at Mediacom LLC quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan I is Libor plus 250 bps with no Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The term loan J is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps at 3 times secured leverage and a 0.75% Libor floor. The loan has 101 soft call protection for one year and was sold at a discount of 99¾.

The term loan G is priced Libor plus 300 bps with a leverage-based step-down and a 0.75% Libor floor, and was sold at 99½. This debt has 101 soft call protection for one year.

Mediacom lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets, Natixis, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading Mediacom’s deal (Ba3/BB) that will be used to refinance existing debt.

During syndication, the spread on the term loan I was reduced from talk of Libor plus 275 bps to 300 bps, the term loan J was upsized from $250 million, pricing firmed at the tight end of the Libor plus 300 bps to 325 bps talk, the step-down was added, and the discount was changed from revised talk of 99½ and initial talk of 99, and the term loan G was added to the deal.

Mediacom is a Middletown, N.Y.-based cable operator.

Bayonne changes emerge

Back in the primary, Bayonne Energy Center lifted its seven-year term loan B to $525 million from $500 million, trimmed pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and modified the original issue discount to 99½ from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

Commitments for the company’s now $555 million senior secured credit facility (Ba3/BB), which also includes a $30 million five-year revolver, were due at 5 p.m. ET on Wednesday.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Credit Agricole CIB are leading the deal that will be used to fund Arclight Capital Partners LLC's acquisition of the remaining 50% interest in Bayonne Energy that it does not currently own, and the funds from the term loan upsizing will be used to pay a dividend, the source added.

Bayonne Energy is a Bayonne, N.J., power generation facility.

Equinox revises OID

Equinox tightened the original issue discount on its fungible $100 million add-on term loan (Ba3) to 99 7/8 from 99½, a market source remarked.

The add-on is priced at Libor plus 325 bps with a 1.25% Libor floor, in line with the existing term loan.

Recommitments were due at the close of business on Wednesday and allocations are targeted for Thursday, the source said.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

Equinox is a New York-based exercise and fitness company.

Learfield issue price talk

Learfield Communications held its conference call on Wednesday morning, at which time its $45 million add-on first-lien term loan (B+) due Oct. 9, 2020 was launched with a par offer price, a market source said.

Pricing on the add-on loan matches the existing term loan at Libor plus 350 bps with a 1% Libor floor, and all of the debt has 101 soft call protection through October.

Commitments are due on Thursday and closing is expected on July 1.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund the acquisition of Licensing Resource Group, a Holland, Mich.-based trademark management company, and for general corporate purposes.

Learfield is a Jefferson City, Mo.-based provider of collegiate sports multimedia rights administration and marketing services.

QoLmeds readies deal

QoLmeds/Genoa Healthcare scheduled a bank meeting for Tuesday to launch a $315 million credit facility, according to a market source.

The facility consists of a $30 million five-year revolver and a $285 million six-year covenant-light term loan, the source said.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with equity to fund the acquisition of Genoa.

QoLmeds, owned by Nautic Partners, is a Pittsburgh-based specialty pharmacy serving the mental health community. Genoa is a Tukwila, Wash.-based provider of pharmacy, phlebotomy and laboratory services.

Ascend on deck

Ascend Learning set a call for Thursday to launch a $40 million add-on first-lien term loan, according to a market source.

Pricing on the add-on loan is Libor plus 500 bps with a 1% Libor floor, in line with the existing first-lien term loan, and the original issue discount is still to be determined, the source said.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used to fund an acquisition.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Blue Bird allocates

In other news, Blue Bird Body Co. allocated its $295 million credit facility that consists of a $60 million five-year revolver and a $235 million six-year first-lien term loan, according to a market source.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at a discount of 98½. There is 101 soft call protection for one year.

During syndication, the revolver was upsized from $50 million, and the term loan was downsized from $250 million, pricing was lifted from Libor plus 450 bps, the original issue discount widened from 99, the call protection was extended from six months, amortization was increased to 5% per annum from 1% and the MFN sunset provision was eliminated.

Societe Generale, Macquarie Capital and Fifth Third Securities Inc. led the deal that is being used to refinance existing debt and fund a dividend, resulting in total leverage of 3.55 times and net leverage of 3.04 times.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

ConvergeOne closes

The buyout of ConvergeOne Holdings Corp., an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction and managed services, by Clearlake Capital Group LP has been completed, a news release said.

For the transaction, ConvergeOne got a new $295 million credit facility led by Credit Suisse Securities (USA) LLC and BMO Capital Markets that includes a $25 million revolver (B2/B), a $190 million six-year first-lien term loan (B2/B) and an $80 million seven-year second-lien term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan widened from Libor plus 475 bps, the call protection was extended from six months and the MFN sunset was eliminated, and the second-lien loan saw its call protection revised from 103 in year one, 102 in year two and 101 in year three.

US Ecology completes deal

US Ecology Inc. closed on its $540 million credit facility (Ba3/BB+) that consists of a $125 million five-year revolver and a $415 million seven-year term loan, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at a discount of 99¾. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was cut from Libor plus 325 bps and the discount was tightened from 99½.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC led the deal that was used to help fund the acquisition of EQ-The Environmental Quality Co. from Kinderhook Industries LLC for $465 million.

US Ecology is a Boise, Idaho-based provider of radioactive, hazardous, PCB and non-hazardous industrial waste management and recycling services. EQ is a Wayne, Mich.-based fully integrated environmental services and waste management company.

Peak 10 wraps

GI Partners closed on its purchase of Peak 10 Inc., a Charlotte, N.C.-based IT infrastructure and cloud provider, from Welsh, Carson, Anderson & Stowe, a news release said, and to help fund the buyout, Peak 10 got a $515 million credit facility consisting of a $55 million revolver (B2/B), a $330 million seven-year first-lien covenant-light term loan (B2/B) and a $130 million eight-year second-lien covenant-light term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 400 bps with a 25 bps step-down at 4 times leverage. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was sold at a discount of 99½.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien loan was flexed from Libor plus 450 bps with a discount of 99, pricing on the second-lien loan was cut from Libor plus 750 bps, and the revolver was downsized from $65 million.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies Finance LLC led the deal, with Credit Suisse left lead on the first-lien and RBC left lead on the second-lien.

Men’s Wearhouse closes

The Men’s Wearhouse Inc. completed its acquisition of JoS. A Bank Clothiers Inc. for $65.00 per share in cash, or total consideration of $1.8 billion, a news release revealed.

Funding for the transaction came in part from a $1.6 billion senior secured credit facility that consists of a $500 million five-year asset-based revolver and a $1.1 billion seven-year covenant-light term loan B (Ba2/B+).

Pricing on the B loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, the spread on the term B firmed at the tight end of the Libor plus 350 bps to 375 bps talk.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch led the deal.

Men’s Wearhouse is a Houston-based specialty retailer of men’s apparel. JoS. A. Bank is a Hampstead, Md.-based designer, manufacturer and retailer of men's apparel, footwear and accessories.

Ryman completed

Ryman Hospitality Properties Inc. (RHP Hotel Properties LP) closed on its $400 million covenant-light term loan B due January 2021 (Ba3/BB) that is priced at Libor plus 300 bps with a 0.75% Libor floor, according to a news release. The debt was issued at 99½ and has a step-down to Libor plus 275 bps when net secured leverage falls below 3.5 times on or after Dec. 31, 2014, and 101 soft call protection for one year.

During syndication, pricing on the loan was reduced from Libor plus 325 bps, the Libor floor was cut from 1%, the discount firmed at the tight end of the 99 to 99½ talk and the call protection was extended from six months.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and U.S. Bank led the deal that was used to repay revolver borrowings and for general corporate purposes.

Ryman is a Nashville, Tenn.-based real estate investment trust specializing in group-oriented, destination hotels in urban and resort markets.

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