Gray Television frees up; Stratose likely firming at tight end; American Renal shelves loan

By Sara Rosenberg

New York, Jan. 21 – Gray Television Inc.’s incremental term loan made its way into the secondary market on Thursday, with levels quoted above its original issue discount.

Over in the primary market, Stratose Inc. is currently anticipated to see spread and original issue discount on its first-lien term loan finalize at the tight end of guidance, and American Renal Holdings Inc. pulled its add-on term loan due to initial public offering delays.

Furthermore, Endurance International Group Holdings Inc. (EIG Investors Corp.) released price talk on its incremental term loan in connection with its bank meeting.

Gray Television breaks

Gray Television’s $425 million incremental senior secured term loan due June 2021 began trading on Thursday, with levels quoted at 99 5/8 bid, 100 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 350 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $400 million and the spread was lowered from Libor plus 400 bps.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the loan that will be used to help fund the $442.5 million acquisition of all of the television and radio stations of Schurz Communications Inc.

Closing is expected on Feb. 1.

Gray Television is an Atlanta-based television broadcast company.

Stratose expected pricing

Switching to the primary market, Stratose’s $265 million first-lien term loan is heard to likely print at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, which is the tight side of the Libor plus 500 bps to 525 bps with a 1% Libor floor and a discount of 98.5 to 99 talk that came out at launch, a market source said.

The loan has 101 soft call protection for six months.

Allocations are expected on Monday and closing is targeted for Tuesday, the source added.

SunTrust Robinson Humphrey Inc., Capital One and BMO Capital Markets are leading the deal that will be used with a privately-placed second-lien term loan to refinance existing debt and fund an add-on acquisition.

Stratose is an Atlanta-based provider of health care cost containment solutions for medical, dental and workers’ compensation payers, third-party administrators, self-funded entities and risk-bearing providers.

American Renal withdrawn

American Renal shelved its $60 million add-on first-lien term loan (B) because of a delay in its proposed initial public offering of common stock, a market source remarked.

Talk on the add-on loan was Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Barclays and Goldman Sachs Bank USA were leading the deal that was going to be used to refinance second-lien term loan borrowings and pay a dividend.

In connection with the add-on loan, pricing on the company’s existing first-lien term loan was going to be increased to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor.

American Renal is a Beverly, Mass.-based provider of dialysis services.

Endurance talk surfaces

Endurance International held its bank meeting at 3 p.m. ET in New York on Thursday, and hours before the event kicked off, price talk on its $735 million incremental seven-year first-lien term loan was announced, according to a market source.

The term loan is talked at Libor plus 500 bps with an original issue discount of 98, the source said. And, as previously reported, the loan is also talked with a 1% Libor floor and 101 soft call protection for six months.

The company’s $910 million of bank debt (B1/B) provides for a $175 million five-year revolver as well.

Commitments are due at 5 p.m. ET on Feb. 3.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Jefferies Finance LLC are leading the debt that will help fund the acquisition of Constant Contact Inc. for $32.00 per share, or about $1.1 billion.

Closing is expected this quarter, subject to Constant Contact shareholder approval, and other customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Endurance is a Burlington, Mass.-based provider of web hosting and online services. Constant Contact is a Waltham, Mass.-based online marketing company.

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