Entercom firms coupon, hits secondary market; Phoenix Services adjusts loan terms again

By Sara Rosenberg

New York, Nov. 21 - Entercom Communications Corp. finalized pricing on its term loan B at the low end of guidance and then freed up for trading on Wednesday, with levels seen above par.

In more happenings, Phoenix Services LLC (Metal Services LLC) revised its term loan, raising the coupon for a second time, widening the original issue discount and giving lenders additional call protection.

Furthermore, Citadel Plastics Holdings Inc. announced plans to bring a dividend recapitalization deal to market.

Entercom starts trading

Entercom Communications' $347.5 million term loan B made its way into the secondary market on Wednesday, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the B loan is Libor plus 375 basis points, after firming at the tight end of the Libor plus 375 bps to 400 bps talk, the trader said. The loan has a 1.25% Libor floor and 101 soft call protection for one year and was issued at par.

Bank of America Merrill Lynch is leading the deal that is being used to reprice an existing $347.5 million term loan B from Libor plus 500 bps with a 1.25% Libor floor.

Entercom is a Bala Cynwyd, Pa.-based radio broadcasting company.

Altisource holds steady

Altisource Portfolio Solutions SA's $200 million seven-year covenant-light senior secured term loan (B1/BB-) was quoted at 99½ bid in trading, in line with where it broke late in the previous session, a trader told Prospect News.

Pricing on the loan is Libor pus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing firmed at the wide end of the Libor plus 425 bps to 450 bps talk.

Bank of America Merrill Lynch, Barclays and Citigroup Global Markets Inc. are the lead banks on the deal that is expected to close this month.

Proceeds will be used to capitalize Altisource Residential Corp., an acquirer and owner of single-family rental assets, and Altisource Asset Management Corp., a Frederiksted, St. Croix-based provider of asset management and corporate governance services, prior to their separation from Altisource and for general corporate purposes, including potential acquisitions.

Altisource is a Luxembourg-based provider of services related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

Phoenix flexes again

Over in the primary, Phoenix Services lifted the spread on its $275 million 41/2-year first-lien term loan to Libor plus 650 bps from the recently revised talk of Libor plus 625 bps, according to a market source. At launch, the loan has been talked at Libor plus 525 bps.

With this latest pricing change, the original issue discount was moved to 98 from 99 and the soft call protection was sweetened to 102 in year one and 101 in year two from just 101 for one year, the source remarked.

As before, the term loan has a 1.25% Libor floor.

The company's $305 million credit facility (B1/B), for which commitments were due at 5 p.m. ET on Wednesday, also provides for a $30 million four-year revolver.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

Phoenix Services is a Kennett Square, Pa.-based provider of steel mill services and a processor of slag and co-products from steel mills and foundries.

Citadel readies deal

Citadel Plastics set a bank meeting for Nov. 28 to launch a $271 million credit facility that is being led by GE Capital Markets, according to a market source.

The facility consists of a $30 million revolver, a $172 million first-lien term loan and a $69 million second-lien term loan, the source said.

Proceeds will be used to refinance existing debt and fund a dividend.

Citadel Plastics is a Chicago-based provider of thermoset and thermoplastic compounds.

Arch Coal closes

Arch Coal Inc. closed on its $250 million incremental covenant-light senior secured term loan (Ba3/BB) due 2018 that is priced at Libor pus 450 bps with a 1.25% Libor floor and was sold at an original issue discount of 99, according to a news release. The spread can step down to Libor plus 425 bps after 12 months from the original term loan issuance date, subject to certain conditions.

Bank of America Merrill Lynch, PNC Capital Markets LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC led the deal that is being used with $375 million of senior unsecured notes due 2019 for general corporate purposes.

The new term loan reduced the size of the company's revolver to $350 million from $600 million.

Arch Coal is a St. Louis-based coal producer and marketer.

UPC wraps deal

UPC Broadband Holding B.V. closed on Wednesday on its $500 million first-lien term loan AF (Ba3/BB-) due Jan. 31, 2021, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 993/4. There is 101 soft call protection for one year.

J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and Citigroup Global Markets Inc. led the deal that was used to refinance an existing facility AB.

UPC is a subsidiary of Liberty Global, an Englewood, Colo.-based provider of video, voice and broadband internet services.

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