Longview prices atop talk; American Airlines sets talk; TGI Fridays sets lender meeting

By Paul A. Harris

Portland, Ore., April 8 – The LCDX 22 index of bank loan credit default swaps ended the Wednesday session unchanged at 102½ bid, 103½ offered, according to a hedge fund manager.

In the primary market Longview Power LLC priced its upsized $300 million Libor plus 600 basis points six-year term loan B at 99.

American Airlines Group Inc. set price talk on its $750 million term loan B.

And TGI Friday’s, Inc. set a Thursday lender meeting for a proposed $207 million fungible tack-on to the first-lien term loan due July 15, 2020.

Longview prices

Longview Power priced its upsized $300 million Libor plus 600 basis points six-year term loan B at 99, according to a market source.

The loan was upsized from $250 million.

The spread and price came on top of price talk. That talk had tightened during the time the loan was in the market. Earlier talk set a spread range of 625 to 650 bps, and an issue price of 98.

The Libor floor remains unchanged at 1%.

The term loan B has 101 soft call protection for one year and amortization of 1% per annum.

Also included in the deal is a 100% excess cash flow sweep.

Along with the term loan B, the $325 million senior secured credit facility (B2/BB-) provides for a $25 million five-year revolver.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets were the leads on the deal that launched with a bank meeting on Wednesday.

Proceeds will be used as exit financing to provide for distributions under the company’s reorganization plan, to complete repairs to the Longview Power Facility and for working capital. The additional proceeds resulting from the $50 million upsizing of the term loan will be used to return capital to investors.

Longview Power is a Maidsville, W.Va.-based integrated power generation enterprise. The company filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

Polymer prices, opens higher

Polymer Group Inc. priced an upsized $283 million Libor plus 425 bps term loan B (B2/B-) at 99.75 on Wednesday, according to a market source.

The deal, which was upsized from $70 million, deal opened at 100¼ bid, 100¾ offered.

The reoffer price saw the deal come cheap to discount talk in the 99.5 area.

The spread and floor on the add-on term loan matches the existing term loan.

The term loan debt will get 101 soft call protection for six months, the source said.

Jefferies Finance LLC is the lead on the deal. Citigroup Global Markets was the administrative agent. Blackstone is the sponsor.

Proceeds will be used to fund the acquisition of Dounor SAS.

Closing is expected in the second quarter, subject to customary terms and conditions.

Polymer Group is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high-performance solutions. Dounor is a Neuville en Ferrain, France-based manufacturer of materials used in hygiene, health care and industrial applications. Polymer group allocated today.

Leighton brings A$800 million

Australia-based Leighton plans to syndicate A$800 million equivalent of seven-year term loan B paper, according to a market source.

Bank meetings are set for Sydney on April 13 and Melbourne on April 15.

The deal is coming in Australian-dollar and U.S.-dollar-denominated tranches (Ba2/BB+), with sizes to be determined.

Barclays, Credit Agricole CIB, ANZ and Goldman Sachs & Co. are the bookrunners.

The U.S. dollar-denominated tranche is priced at Libor plus 475 bps.

The Australian dollar-denominated tranche is priced at BBSY plus 575 bps.

Both tranches are talked at a reoffer price of 99, and feature six months of soft call protection at 101.

Proceeds will be used to finance the formation of Leighton Services, a fifty-fifty investment partnership between Leighton Holdings Ltd. and Apollo Global Management.

The borrowing entities are LS Deco LLC and LS Newco Pty Ltd.

Leighton is a St Leonards, New South Wales, Australia-based provider of industrial and civil services.

American Airlines talk

American Airlines set price talk on its $750 million senior secured term loan B due Oct. 10, 2021 (B2/BB), according to a market source.

The deal is talked at a 300- to 325-bps spread to Libor, with a 75-bps Libor floor at par.

It features a six month soft call at 101, and 1% annual amortization.

Commitments are due on April 15, and the deal is expected to close on April 20.

Joint lead arranger Citigroup Global Markets is the administrative agent.

BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co., BNP Paribas and Credit Agricole CIB are also joint lead arrangers.

The new loan has mandatory prepayments, negative covenants and financing covenants which are the same as the existing term loan B.

Proceeds will be used to pay off the existing term loan B.

The commercial airline, a subsidiary of AMR Corp., is based in Fort Worth.

TGI Friday’s lender meeting

TGI Friday’s (B3/B+) plans to participate in a lender meeting on Thursday for a proposed $207 million fungible tack-on to the first-lien term loan due July 15, 2020, according to a market source.

Commitments are due April 16.

Credit Suisse Securities (USA) LLC is leading the deal.

The tack-on comes with pricing at Libor plus 450 bps, repricing the existing $118 million loan from Libor plus 425 bps.

The existing loan’s 1% Libor floor will also pertain to the tack-on.

The tack-on reoffer price is set at 99, extending a point of original issue discount from the existing loan which is priced at par.

The loans have 12 months soft call protection at 101.

Existing first-lien lenders will receive a 25-bps consent fee.

The New York-based casual dining chain plans to use the proceeds to refinance its second-lien term loan and seller preferred paper.

Access lender call Thursday

Access CIG, LLC plans to participate in a lender call on Thursday for a proposed $50 million add-on to its first-lien term loan due October 2021 (B1/B), according to a market source.

Deutsche Bank Securities Inc. has the books.

The deal features a 500-bps spread to Libor and a 1% Libor floor.

The reoffer price remains to be determined.

The Livermore, Calif.-based company plans to use the proceeds to pay down its revolver and for general corporate purposes including potential tuck-in acquisitions.

The prospective borrower provides records storage, data security, information destruction and electronic document management services.

Dole $100 million add-on

Dole Food Co., Inc. set a Thursday lender call to present to investors a proposed $100 million add-on to its first-lien term loan due Nov. 1, 2018 (expected ratings B2/B-), according to a market source.

Deutsche Bank Securities Inc. is the left bookrunner. BofA Merrill Lynch and Scotia are joint bookrunners.

The deal comes with a 350-bps spread to Libor and with a 1% Libor floor.

The original issue discount remains to be determined.

The Westlake Village, Calif.-based fruit and vegetables company plans to use the proceeds for general corporate purposes including farm acquisitions.

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