Advantage Sales, First Data, Paragon Offshore, Red Lobster deal modifications surface

By Sara Rosenberg

New York, July 10 – Advantage Sales & Marketing LLC tightened spreads and the original issue discounts on its first- and second-lien term loans on Thursday and added a delayed-draw loan to its capital structure.

Also, First Data Corp. lifted the size of its term loan so it can take out some PIK debt, Paragon Offshore raised its term loan amount, adjusted spread guidance, tightened the offer price and extended the call protection, and Red Lobster Management LLC increased the size of its term loan B.

Furthermore, Southcross Holdings Borrower LP, Southcross Energy Partners LP, Dave & Buster’s Inc. and Osum Production Corp. came out with talk on their deals that launched during the session, and Endemol Holdings NewCo and Boulder Brands Inc. joined the near-term calendar.

Advantage Sales & Marketing lowered pricing on its $1.8 billion seven-year first-lien covenant-light term loan to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, revised the original issue discount to 99¾ from talk 99 to 99½ and extended the 101 soft call protection to one year from six months, according to a market source. This tranche still has a 1% Libor floor.

Also, pricing on the $760 million eight-year second-lien covenant-light term loan was trimmed to Libor plus 650 bps from Libor plus 700 bps and the discount was changed to 99¼ from 99, the source said.

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