Weather launches $1 billion first-lien term loan at Libor plus 425 bps

By Sara Rosenberg

New York, May 11 – Weather Co. (TWCC Holding Corp.) held a call at 2 p.m. ET on Monday to launch a $1 billion first-lien term loan due February 2020 that is talked at Libor plus 425 basis points with a 0.75% Libor floor and an original issue discount of 99.5 on new money only, according to a market source.

The term loan has 101 soft call protection for six months and a first-lien secured net leverage covenant, the source said.

Also, the loan includes a restricted payments basket subject to 5 times total debt.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Proceeds will be used to extend the maturity of the existing first-lien term loan by three years while increasing pricing from Libor plus 275 bps with a 0.75% Libor floor.

Existing lenders are being offered a 25 bps extension fee.

With this transaction, the company will make a $100 million paydown, split between $50 million on the first-lien term loan at par and $50 million on an existing second-lien term loan at par on June 26. First-lien lenders have the right to decline the paydown and any rejected first-lien prepayment will be applied to the second-lien loan.

Commitments are due at the close of business on May 19, the source added.

Weather is an Atlanta-based multi-platform media and information company focused on weather.

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