Veresen Midstream breaks; Weight Watchers falls on numbers; Community Health launches

By Sara Rosenberg

New York, Feb. 27 – Veresen Midstream LP’s term loan B freed up for trading on Friday above its original issue discount, and Weight Watchers International Inc.’s term loan B-2 continued to decline on the back of disappointing earnings news.

Meanwhile in the primary market, Community Health Systems approached lenders with a term loan F that will extend and amend its existing term loan E, and Headwaters Inc. joined the near-term calendar.

Veresen Midstream’s $575 million seven-year term loan B (Ba3/BB-) began trading on Friday, with levels quoted at 99 bid, 99˝ offered on the break and then it moved up to 99˝ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor and it was sold at an original issue discount of 98˝. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $600 million to adjust for Canadian and U.S. dollar rate movements, the discount was tightened from 98 and the MFN sunset provision was eliminated so that there is 50 bps MFN for life.

RBC Capital Markets, TD Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal.

The company’s senior secured credit facility also includes a C$75 million revolver that will be available for operating and working capital requirements and a C$1,275,000,000 non-revolving expansion facility that will be largely undrawn initially and available to fund future growth.

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