Wheel Pros scales back deal size, dividend; Townsquare Media shelves extension request

By Sara Rosenberg

New York, Nov. 4 – Wheel Pros reduced the size of its first-lien term loan, revised price talk to the high end of guidance, widened the original issue discount and extended the call protection, and scaled back its second-lien term loan amount as well.

In other news, Townsquare Media Inc. withdrew from market its proposal to extend its term loan B as a result of unfavorable conditions.

Wheel Pros reworked

Wheel Pros trimmed its seven-year first-lien term loan to $685 million from $735 million and changed price talk to Libor plus 525 basis points from a range of Libor plus 500 bps to 525 bps, a market source remarked.

Additionally, the original issue discount on the first-lien term loan was modified to 97.5 from 98.5 and the 101 soft call protection was extended to one year from six months.

The first-lien term loan still has a 1% Libor floor.

Regarding the second-lien term loan, the decision was made to downsize the tranche to $185 million from $210 million, the source continued.

The company’s now $970 million of credit facilities also include a $100 million five-year ABL revolver.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

As a result of the first-and second-lien term loan downsizings, the dividend amount was reduced by $75 million to $145 million, the source added.

Wheel Pros is a distributor of proprietary branded wheels and performance tires.

Townsquare pulled

Townsquare Media shelved the extension of its $298.5 million term loan B to April 1, 2025 from April 1, 2022, according to a market source.

The extended term loan was talked at Libor plus 450 bps with a 1% Libor floor, and lenders were being offered a 150 bps extension fee.

By comparison, current pricing on the term loan B is Libor plus 300 bps with a 1% Libor floor.

RBC Capital Markets was acting as the lead on the deal.

Townsquare Media is a Purchase, N.Y.-based media, entertainment and digital marketing services company.

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