Crown Castle better on towers purchase; Chemtura slips; Sandy Creek, Mohegan reveal talk

By Sara Rosenberg

New York, Oct. 21 - Crown Castle International Corp.'s term loan was stronger in trading on Monday as the company announced that it will purchase the rights to AT&T towers, and Chemtura Corp.'s term loan weakened with the launch of a repricing.

Over in the primary, Sandy Creek Energy Associates LP and Mohegan Tribal Gaming Authority released price talk with launch, and Golden Nugget Inc., Azure Midstream Holdings LLC, Vince Intermediate Holding LLC and Duff & Phelps Corp. joined this week's calendar.

Crown Castle rises

Crown Castle's term loan headed higher in the secondary market on Monday after news hit that the company will be buying rights to about 9,700 AT&T towers for $4.85 billion, according to traders.

One trader had the loan quoted at 99 5/8 bid, par 1/8 offered, up from 99 1/8 bid, 99 5/8 offered on Friday, and another trader had it at 99 1/8 bid, 99 5/8 offered, up from 99 bid, 99 3/8 offered.

Funds for the acquisition will come from new debt, borrowing under the company's existing revolving credit facility, and the sale of mandatory convertible preferred stock and common stock.

In connection with the transaction, the company obtained a commitment for a $3.4 billion 364-day bridge loan that will be reduced on a dollar-for-dollar basis by, among other things, the gross proceeds of the convertible and common stock offerings that are in excess of $1.055 billion, and by the gross cash proceeds of any of the debt financing other than borrowings under the revolver.

Crown Castle bridge details

Pricing on Crown Castle's bridge loan is Libor plus 525 basis points with a 0.75% Libor floor. The spread will increase by 50 bps every three months until it hits a cap.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the active joint lead arrangers and bookrunners on the bridge loan. Other banks involved include Barclays, SunTrust Bank, the Royal Bank of Scotland plc, Credit Agricole CIB, Royal Bank of Canada, TD Securities (USA) LLC, the Bank of Tokyo-Mitsubishi UFJ Ltd., Deutsche Bank, PNC Capital Markets LLC and Sumitomo Mitsui Banking Corp.

Crown Castle, a Houston-based owner, operator and leaser of towers and other infrastructure for wireless communications, expects to close on the acquisition in the fourth quarter.

Chemtura softens

Chemtura's term loan dipped to par ¼ bid, par ¾ offered from par ½ bid, 101 offered in connection with the company's launch of a repricing proposal, according to a trader.

On a Monday call, the company approached lenders with plans to reprice the term loan to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 400 bps with a 1.5% Libor floor, sources said.

The repriced loan is offered at par, includes 101 soft call protection for six months and has amortization of 1% per annum.

Additionally, the company is looking to amend its credit facility to permit additional flexibility under certain operating covenants.

Lead banks, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC, are seeking consents by Friday, sources added.

With the repricing launch, the company said in an 8-K filed with the Securities and Exchange Commission that it expects to pay down about $100 million to $120 million of its term loan debt with proceeds from the sale of its consumer products business.

Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

Sandy Creek sets talk

Moving to the primary, Sandy Creek Energy Associates held its bank meeting Monday, launching its $1,025,000,000 first-lien term loan B with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The company's $1,202,000,000 credit facility (Ba3) also provides for a $41 million revolver, a $34 million debt service reserve letter-of-credit facility and a $102 million senior secured tax exempt letter-of-credit facility that has a 325 bps letter-of-credit fee, the source remarked.

Commitments are due on Nov. 4.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., CoBank, Credit Agricole CIB, ING Capital, Union Bank, Natixis, Investec and ICBC are leading the deal that will be used to refinance existing debt, to pay swap breakage costs, to fund operating reserves, to repay Sandy Creek Energy Holdings' loan, which is currently held by affiliates of LS Power, and to pay transaction related fees and expenses.

Sandy Creek Energy Associates owns 64% of the Sandy Creek Energy Station plant, while Brazos Electric Power Cooperative Inc. owns a 25% interest, and the remainder is owned by Lower Colorado River Authority.

Mohegan guidance surfaces

Mohegan Tribal Gaming Authority launched its $465 million six-year term loan B in the afternoon with talk of Libor plus 450 bps to 475 bps with a 1.25% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two, according to a market source.

The company's $715 million credit facility (B2/B-) also includes a $100 million five-year revolver and a $150 million five-year term loan A.

Commitments are due on Nov. 4, the source remarked.

RBS Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

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

Golden Nugget coming soon

Golden Nugget Inc. emerged with plans to hold a bank meeting on Wednesday morning to launch a $550 million credit facility, according to a market source.

The facility consists of a $100 million five-year revolver, a $300 million six-year term loan B and a $150 million delayed-draw term loan, the source said.

Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance all of the company's existing debt, fund the acquisition from Pinnacle Entertainment Inc. and the completion of the Golden Nugget Lake Charles casino and hotel resort project, and pay related fees.

Other funds for the transaction will come from $300 million of bonds.

Golden Nugget is a hotel and casino operator. The company is being spun out of Landry's Inc.

Azure readies loan

Azure Midstream set a bank meeting for 10 a.m. ET on Wednesday to launch a $550 million seven-year term loan B that is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to sources.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to help fund the acquisition of TGGT Holdings LLC from EXCO Operating Co. LP and BG Group plc for about $910 million, split between about $875 million in cash and the remainder in the form of a roughly 8% equity interest in Azure.

Closing is expected in the fourth quarter.

Azure is a Houston-based midstream gas company. TGGT is a Dallas-based midstream energy company.

Vince on deck

Vince Intermediate scheduled a bank meeting for 2 p.m. ET on Wednesday to launch a $175 million six-year term loan, according to a market source.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Vince is a New York-based diversified apparel company.

Duff plans call

Duff & Phelps Corp. will host a call at 10:30 a.m. ET on Tuesday to launch a $135 million first-lien covenant-light tack-on term loan due April 2020 that includes 101 soft call protection for six months, according to a market source.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds will be used to repurchase a portion of the company's tax receivable agreement and to fund a dividend to shareholders.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

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