Petco sets term loan sizes and breaks for trading; 1-800 Contacts frees up above OID

By Sara Rosenberg

New York, Jan. 15 – Petco Animal Supplies Inc. finalized tranche sizes on its term loan B-1 and term loan B-2, and then the loans began trading on Friday above their original issue discounts. 1-800 Contacts Inc.’s (CNT Holdings III Corp.) credit facility broke too.

Petco’s $1,825,000,000 seven-year covenant-light senior secured first-lien term loan B-1 (B1/B) was quoted at 98 3/8 bid, 98¾ offered and its $700 million seven-year covenant-light senior secured first-lien term loan B-2 (B1/B) at 98 5/8 bid, 99 1/8 offered, according to a trader.

1-800 Contacts’ $500 million seven-year first-lien term loan was quoted at 99¼ bid, 99 7/8 offered, a trader said.

In other news, Zayo Group LLC completed its $400 million covenant-light term loan B-2 (Ba2) due May 6, 2021, according to a news release.

Microsemi Corp. closed on its acquisition of PMC-Sierra Inc. for $9.22 in cash and 0.0771 of a share of Microsemi common stock for each share of PMC common stock, a news release said. The transaction is valued at about $2.5 billion.

To help fund the transaction, Microsemi got a new $2.45 billion senior secured credit facility (Ba3/BB-) that includes a $450 million five-year term loan A and a $300 million five-year revolver, both priced at Libor plus 250 bps with no floor, and a $1.7 billion seven-year covenant-light term loan B.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.