Delta tweaks deal; US Foods terminates syndication process; T-Mobile comes to market

By Sara Rosenberg

New York, April 27 – In the primary market on Monday, Delta Air Lines Inc. lowered the spread on its term loan B, and US Foods Inc. pulled its term loan B from syndication and went the route of privately placing the transaction.

Delta Air Lines trimmed pricing on its $1.5 billion three-year first-lien senior secured term loan B (Baa2/BBB-) to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 97 and call protection of non-callable for one year, with a make-whole call at Treasuries plus 50 bps.

Commitments due at noon ET on Monday.

Barclays, J.P Morgan Securities LLC, BofA Securities, Inc., BBVA, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., SMBC, Standard Chartered, US Bank and Wells Fargo Securities LLC are leading the deal. Barclays is the administrative agent.

Also during the session, T-Mobile USA Inc. released price talk on its term loan with the launch of syndication in the morning.

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