San Juan Cable up on buyout; Sheridan, WireCo rework deals; WideOpenWest changes coming

By Sara Rosenberg

New York, June 27 - San Juan Cable LLC (OneLink Communications) saw its term loan B head higher in trading on Wednesday on the back of news that it is being acquired by Liberty Global Inc. and Searchlight Capital Partners LP.

Over in the primary, Sheridan Holdings Inc. came out with changes to its credit facility, moving some funds to its first-lien term loan from its second-lien term loan, setting pricing on the first-lien debt at the low end of talk, reducing the spread on the second-lien tranche and tightening term loan original issue discounts.

Also, WideOpenWest Finance LLC (WOW!) is looking to revise its debt financing with the deal is expected to return after the July 4 holiday, WireCo WorldGroup Inc. upsized its transaction and trimmed B loan pricing, and Arctic Glacier USA Inc. revealed plans to bring a buyout financing credit facility to market.

San Juan Cable rises

San Juan Cable's term loan B moved up on Wednesday to 98½ bid, par offered, from 97½ bid, 98½ offered, as investors reacted to the company's late Tuesday buyout announcement, according to a trader.

The trader explained that the debt moved closer to par on the news as some are expecting a paydown upon closing of the transaction, but it is not yet straddling par since nothing definitive has been said as to whether the credit facility will be repaid.

The acquisition values San Juan Cable at roughly $585 million before transaction costs.

Closing is expected in the fourth quarter, subject to customary conditions including regulatory approval.

Liberty Cablevision financing

Liberty Global's subsidiary, Liberty Cablevision of Puerto Rico LLC, anticipates getting a new $185 million five-year credit facility (B+) to help fund the San Juan Cable purchase, and Scotia Capital (USA) Inc. is the left lead on the deal, a market source told Prospect News.

The facility is comprised of a $10 million revolver and a $175 million term loan, the source said.

At close, San Juan Cable will be merged with Liberty Cablevision of Puerto Rico, an existing operation of Liberty Global's subsidiary, LGI Broadband Operations Inc.

The combined Puerto Rico cable operator will be 60%-owned by Liberty Global and 40%-owned by Searchlight.

Liberty Global is an Englewood, Colo.-based cable company.

Lee Enterprises gains

In other trading happenings, Lee Enterprises Inc.'s first-lien term loan was stronger, moving to 83½ bid, 84½ offered, from 83 bid, 84 offered, according to a trader.

The company's second-lien loan was also better at 81½ bid, 83½ offered, versus 81 bid, 83 offered in the prior session, the trader remarked.

A second source said that there didn't seem to be any news sparking the upward momentum.

Lee is a Davenport, Iowa-based print and digital provider of local news, information and advertising.

Sheridan restructures

Moving back to the primary, Sheridan Holdings revised tranche sizes, updated pricing and decreased discounts in the morning and asked lenders to recommit to the oversubscribed transaction by 5 p.m. ET on Wednesday, with the plan being to allocate by the end of the week, according to a market source.

With the changes, the six-year covenant-light first-lien term loan (B1/B+) was increased to $600 million from $570 million, and pricing was set at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 99, versus earlier talk of Libor plus 475 bps to 500 bps with a 1.25% floor and a discount of 98, the source remarked. The 101 repricing protection for one year was left intact.

Meanwhile, the seven-year covenant-light second-lien term loan (Caa1/B-) was cut to $110 million from $140 million, and pricing firmed at Libor plus 775 bps with a 1.25% floor and a discount of 99, compared to initial talk of Libor plus 825 bps to 850 bps with a 1.25% floor and a discount of 98, the source said. This debt still has call premiums of 103 in year one, 102 in year two and 101 in year three.

Sheridan revolver pricing

Sheridan Holding's also finalized pricing on its $100 million five-year revolver (B1/B+) at Libor plus 475 bps, the low side of the Libor plus 475 bps to 500 bps talk, the source continued. As before, there is no Libor floor and an original issue discount of 99.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the joint lead arrangers on the $810 million credit facility and bookrunners with Bank of America Merrill Lynch, UBS Securities LLC and SunTrust Robinson Humphrey Inc.

Sheridan Holdings, a Sunrise, Fla.-based provider of outsourced health care services, will use the proceeds from the new deal to refinance existing debt.

WOW! revisions expected

WideOpenWest is talking with its lead banks and sponsor about making changes to its debt financing, with the expectation being that the transaction will return during the week of July 9, a market source said.

As launched, the company's debt includes a $2.12 billion credit facility (B1/B) that consists of a $200 million five-year revolver and a $1.92 billion seven-year first-lien term loan B talked at Libor plus 500 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year.

The company was also planning on getting $1.02 billion of senior unsecured notes.

Proceeds from the debt and $200 million of equity will be used to help fund the acquisition of Knology Inc. for $19.75 per share in cash., or around $1.5 billion.

WOW! lead banks

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Bank of Tokyo-Mitsubishi-UFJ Ltd. are leading WideOpenWest's credit facility.

Closing on the acquisition is subject to stockholder approval, regulatory approvals and customary conditions.

WideOpenWest, an Avista Capital Partners portfolio company, is a Denver-based provider of residential and commercial high-speed internet, cable television and telephone services. Knology is a West Point, Ga.-based provider of interactive communications and entertainment services.

WireCo modifies terms

WireCo WorldGroup was another company to come out with a credit facility update, as it upsized its deal by $20 million to $480 million and tightened term loan B pricing, according to a market source.

The B loan is now sized at $335 million, up from $325 million, and pricing is Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99, compared to prior talk in the Libor plus 500 bps area with a 1.25% floor and a discount of 98 1/2, the source said. The 101 soft call protection for one year was left unchanged.

Meanwhile, the revolver was upsized to $145 million from $135 million, although less will be drawn on this tranche at close as a result of the term B upsizing, the source remarked. The debt includes a 50 bps unused fee.

WireCo allocating soon

The source went on to say that allocations on WireCo's senior secured credit facility (Ba2/BB-) due Feb. 15, 2017 are expected to go out on Thursday.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the deal that, along with $82.5 million of privately placed 11¾% senior unsecured notes due May 15, 2017, will fund the $231.2 million purchase of Koninklijke (Royal) Lankhorst Euronete Group BV and refinance existing bank debt.

Total leverage will be 5.4 times and net leverage will be 5.1 times, based on pro forma adjusted EBITDA of $164.3 million for the 12-month period ended March 31.

WireCo is a Kansas City, Mo.-based manufacturer, engineer and distributor of wire, wire rope, wire rope assemblies and electromechanical cable. Koninklijke is a Netherlands-based manufacturer of ropes, industrial yarns, netting, yachting products and recycled plastic products.

Arctic readies deal

Arctic Glacier surfaced with new deal plans, setting a bank meeting for 10 a.m. ET on Thursday to launch a proposed $225 million credit facility (B) that consist of a $25 million five-year revolver and a $200 million six-year first-lien term loan, according to a market source.

Price talk is not yet available, the source said.

Credit Suisse Securities (USA) LLC is the sole bookrunner on the deal and Jefferies & Co. is the syndication agent.

Proceeds, along with $85 million of mezzanine debt, will be used to help fund H.I.G. Capital's purchase of Arctic Glacier, a Winnipeg-based producer, marketer and distributor of packaged ice.

Closing is expected by July 31, subject to approval of the U.S. Bankruptcy Court for the District of Delaware, pre-merger clearance in the U.S. and the satisfaction of certain customary conditions.

Henry buyout wraps

Graham Partners completed its acquisition of Henry Co. from AEA Investors, according to a news release, and to help fund the transaction, the company got a new $150 million credit facility (B1).

The GE Capital Markets-led deal consists of a $20 million revolver and a $130 million term loan that are priced in line with initial talk at Libor plus 525 bps with a 1.25% Libor floor. Both tranches were sold at an original issue discount of 981/2.

Henry is an El Segundo, Calif.-based provider of roof coatings, cements, roofing systems, driveway maintenance products and sealants.

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