Zayo breaks atop OID; Pinnacle Foods sets changes; NorthStar, GCP Applied release talk

By Sara Rosenberg

New York, Jan. 12 – Zayo Group LLC trimmed the spread on its term loan B-2 due to strong market demand and then the debt made its way into the secondary on Tuesday, with levels quoted above its original issue discount.

Also, Pinnacle Foods Inc. lowered pricing and tightened the issue price on its well-received incremental term loan, NorthStar Asset Management Group Inc. (NSAM LP) and GCP Applied Technologies Inc. came out with price talk on their term loans in connection with their launches, and Vivid Seats Ltd. surfaced with new deal plans.

Zayo flexes, trades

Zayo Group reduced pricing on its $400 million covenant-light term loan B-2 (Ba2) due May 6, 2021 to Libor plus 350 basis points from Libor plus 375 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Recommitments were due at 2:30 p.m. ET, and with final pricing in place, the debt freed up for trading late in the session, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

Morgan Stanley Senior Funding Inc. is leading the loan that will be used to fund previously announced acquisitions.

Closing is expected on Friday.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Pinnacle Foods revised

In more happenings, Pinnacle Foods cut the spread on its $550 million incremental term loan (Ba2/BB+) to Libor plus 300 bps from the Libor plus 350 bps area and moved the original issue discount to 99.5 from 99, a market source remarked.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Allocations are targeted for Wednesday, the source added.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $350 million in notes and cash on hand to fund the acquisition of Boulder Brands Inc. for $11.00 per share, in a transaction valued at about $975 million, including around $265 million of net debt.

Closing is expected this quarter, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

NorthStar reveals guidance

NorthStar Asset Management held its bank meeting on Tuesday, and in connection with the event, talk on its $500 million seven-year covenant-light senior secured term loan B (BBB-) surfaced as Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Jan. 26, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the roughly $380 million acquisition of an about 85% interest in the Townsend Group, a manager and advisor of real assets, and to refinance a short-term bridge facility.

The acquisition is expected to close early this year.

NorthStar is a New York-based asset management firm focused on managing real estate investment platforms.

GCP talk emerges

GCP Applied Technologies released talk of Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $275 million six-year covenant-light term loan B (Ba2) that launched with a morning bank meeting, a market source said.

Commitments are due on Jan. 21.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the term loan that is being done in connection with the company’s spinoff from W.R. Grace & Co.

Proceeds will be used to fund a distribution to W.R. Grace and for working capital.

GCP is a Cambridge, Mass.-based provider of products and technology solutions in the specialty construction chemicals, specialty building materials and packaging sealants and coating industries.

Vivid readies deal

Also in the primary, Vivid Seats is expected to hold a bank meeting during the last week of January to launch $240 million in first-lien senior bank debt, according to a market source.

RBC Capital Markets and SG Americas Securities LLC are leading the deal that is being done in connection with the company’s strategic partnership with Vista Equity Partners.

Net leverage will be 4 times, the source said.

Vivid is a Chicago-based full-service secondary ticket marketplace for live sports, concerts and theater events.

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