DirecTV tweaks timing; Pilot Travel, Atlantic Broadband, Iridium, Curia, Hyperion set talk

By Sara Rosenberg

New York, July 19 – In the primary market on Monday, DirecTV Financing LLC accelerated the commitment deadline for its credit facilities.

Also, Pilot Travel Centers LLC, Atlantic Broadband (Cogeco Financing 2 LP), Iridium Satellite LLC, Curia Global Inc. and Hyperion Materials & Technologies released price talk with launch.

Furthermore, McAfee Enterprise/FireEye Products, Air Canada and Acrisure LLC joined this week’s primary calendar.

DirecTV accelerated

DirecTV, a video services company, moved up the commitment deadline for its $3.6 billion of credit facilities (Ba3/BB/BBB-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The facilities consist of a $500 million revolver, and a $3.1 billion six-year covenant-lite first-lien term loan talked at Libor plus 525 basis points with a 0.75% Libor floor, an original issue discount of 98 and call protection of non-callable for one year.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., BMO Capital Markets, Goldman Sachs Bank USA, Mizuho, MUFG, UBS Investment Bank, Barclays and Jefferies LLC are leading the deal that will be used to help fund the creation of the company through the spinoff of DirecTV, AT&T TV and U-verse video services from AT&T Inc.

TPG Capital will contribute $1.8 billion in cash to DirecTV in exchange for senior preferred units and a 30% interest in the company. AT&T is getting $4.25 billion of junior preferred units, an additional distribution preference of $4.2 billion and a 70% economic interest in the company.

Closing is expected in the second half of 2021, subject to customary conditions and regulatory reviews.

Pilot Travel talk

Pilot Travel Centers held its lender call on Monday afternoon and announced price talk on its $3.5 billion seven-year covenant-lite term loan B (BB+) at Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Commitments are due at noon ET on July 29.

Wells Fargo Securities LLC, BofA Securities Inc., Truist and US Bank are leading the deal that will be used to fund the redemption of the outstanding $2.3 billion in preferred equity interests in the company held by the Haslam/Call families, repay a revolving credit facility due 2024 and repay a portion of an existing term loan A due 2024.

Berkshire Hathaway is the sponsor.

Pilot Travel is a Knoxville, Tenn.-based operator of travel centers and retailer of diesel fuel to the over-the-road market.

Atlantic holds call

Atlantic Broadband emerged in the morning with plans to hold a lender call at 2 p.m. ET on Monday to launch a $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) talked at Libor plus 275 bps with a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, a market source said.

Commitments are due at 5 p.m. ET on July 28, the source added.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are leading the deal that will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is targeted for the first quarter of fiscal 2022, subject to regulatory approvals and other customary conditions.

Net debt to adjusted EBITDA is expected to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

Iridium repricing

Iridium launched in the morning without a call a $1.629 billion covenant-lite term loan B due Nov. 4, 2026 talked at Libor plus 250 bps with a 0.75% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, the source added.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor.

The company is holding a second quarter earnings call at 8:30 a.m. ET on Tuesday.

Iridium is a McLean, Va.-based provider of mobile voice and data communications services through satellite.

Curia sets guidance

Curia came out with talk of Libor plus 350 bps to 375 bps with a 0.75% Libor floor and an original issue discount of 99 to 99.5 on its $310 million incremental first-lien term loan (B2/B) due Aug. 30, 2026 that launched with a call in the morning, a market source remarked.

The incremental term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Barclays is the left lead on the deal, which will be used to help fund the acquisitions of Integrity Bio Inc., a Camarillo, Calif.-based formulation and fill-finish organization, and LakePharma, a biologics drug discovery, clinical research, development and manufacturing organization.

Closing on the acquisitions is expected in the third quarter, subject to customary conditions.

Curia, formerly known as Albany Molecular Research Inc., is an Albany-based contract research, development and manufacturing organization.

Hyperion proposed terms

Hyperion Materials & Technologies launched on its call during the session its $390 million first-lien term loan at talk of Libor plus 475 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $465 million of credit facilities (B2/B) also include a $75 million revolver.

Commitments are due on Aug. 2, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt.

Hyperion Materials, a portfolio company of KKR, is a Worthington, Ohio-based solutions provider of effective applications for hard and super-hard materials.

McAfee/FireEye on deck

McAfee Enterprise/FireEye Products will hold a lender call on Tuesday to launch a $925 million incremental first-lien term loan, according to a market source.

The company is also getting a $175 million second-lien term loan that has been pre-placed.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc., HSBC Securities (USA) Inc. and KKR Capital Markets are leading the deal that will be used to help fund the acquisition of FireEye Products by a consortium led by Symphony Technology Group for $1.2 billion from FireEye Inc.

Symphony Technology Group intends to combine FireEye Products with McAfee Enterprise.

Closing on the FireEye acquisition is expected by the end of the fourth quarter, subject to regulatory approvals and customary conditions.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions. FireEye Products is a provider of network, e-mail, endpoint and cloud security products.

Air Canada joins calendar

Air Canada scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a $2 billion senior secured term loan B (Ba2/BB-/BB) due 2028 talked at Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and call protection of non-callable for one year, then at 102 in year two, a market source remarked.

Commitments are due at 5 p.m. ET on July 28, the source added.

JPMorgan Chase Bank, Citigroup Global Markets Inc. and TD Securities (USA) LLC are leading the deal that will help refinance the company’s existing $600 million revolver due 2024, $580 million term loan B due 2023, C$200 million 4.75% senior secured first lien notes due 2023 and C$840 million senior secured second-lien notes due 2024.

The company is also getting a $600 million revolver due 2025 and about $2.75 billion of new U.S. and Canadian other secured debt for the refinancing.

Closing is expected in the third week of August.

Air Canada is a Montreal-based airline company.

Acrisure coming soon

Acrisure set a lender call for 11 a.m. ET on Tuesday to launch a non-fungible $500 million incremental term loan B (B2/B) talked at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on July 27, the source added.

JPMorgan Chase Bank is leading the deal that will be used with $500 million of other unsecured debt to fund acquisitions under signed letters of intent, fund future acquisitions, and pay related fees and expenses.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

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