WideOpenWest breaks; Fortescue up with planned repayment; iHeartMedia better on numbers

By Sara Rosenberg

New York, May 4 – WideOpenWest Finance LLC increased the size of its add-on term loan B and then the debt made its way into the secondary market on Wednesday afternoon, with levels quoted above its original issue discount.

In more happenings, Fortescue Metals Group’s term loan headed higher in trading in reaction to paydown news, and iHeartMedia Inc.’s term loan D was stronger with favorable first quarter earnings results.

Meanwhile, back in the primary market, Telenet and Anchor Glass Container Corp. accelerated the commitment deadlines on their term loans, Schumacher Clinical Partners joined this week’s new issue calendar, and timing on the launch of Verisk Health’s credit facility surfaced.

WideOpenWest upsizes, trades

WideOpenWest lifted its add-on term loan B due April 1, 2019 on Wednesday to $432.5 million from $382.5 million, according to a market source.

As before, pricing on the add-on term loan is Libor plus 350 basis points with a 1% Libor floor, which matches existing term loan B pricing, and the add-on was sold at an original issue discount of 99.51.

Following the size change, the add-on term loan freed up for trading, and levels were quoted at 99¾ bid, 100¼ offered, a trader remarked.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the loan that will be used to repay term loan B-1 borrowings, to pay related fees and expenses, and due to the upsizing, to add cash to the balance sheet, for general corporate purposes and for debt repayment, the source added.

Closing is expected during the week of May 9.

WideOpenWest is a Denver-based provider of data, video and telephone services.

Fortescue rises

Fortescue Metals’ 2019 senior secured term loan rose to 95 bid, 96 offered from 93½ bid, 94½ offered in trading as the company announced plans to repay $650 million of loan, a trader remarked.

The repayment will be made at par from cash on hand on May 16.

The term loan paydown is in addition to the repayment of $577 million senior unsecured notes that was initiated by the company last week.

Fortescue is a Perth, Australia-based producer of iron ore.

iHeartMedia gains ground

iHeartMedia’s term loan D strengthened by a few points after the company released better-than-expected first quarter numbers, according to a trader.

The term loan D was quoted at 77¼ bid, 77¾ offered, up from 74¾ bid, 75½ offered, the trader said.

For the quarter, net loss attributable to the company was $88.5 million, compared to a net loss of $385 million in the first quarter of 2015, and consolidated net loss was $58.9 million, versus a net loss of $386.6 million in the previous year.

Consolidated revenue for the quarter was $1.36 billion, up from $1.34 billion in the comparable period in the prior year.

And, consolidated OIBDAN for the quarter was $300.5 million, versus $276.4 million in the previous year.

iHeartMedia, formerly known as Clear Channel Communications, is a San Antonio, Texas-based multi-platform media and entertainment company.

Telenet revises deadline

Switching back to the primary market, Telenet accelerated the commitment deadline on its $850 million eight-year senior secured term loan B to noon ET on Thursday from Friday, a source remarked.

The term loan is talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six-months.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are the physical bookrunners on the deal, and Societe Generale, ING and Scotiabank are the joint bookrunners. Scotiabank is the administrative agent.

Proceeds will be used to repay some bank debt, which will then result in the repayment of €300 million of senior secured notes due 2021 and €400 million of senior secured floating-rate notes due 2021.

Telenet is a Mechelen, Belgium-based cable operator.

Anchor Glass shutting early

Anchor Glass moved up the commitment deadline on its fungible $110 million add-on term loan (B2/BB-) due June 2022 to 5 p.m. ET on Thursday from 5 p.m. ET on Monday, a market source said.

The add-on term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 98.5-99 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC is leading the debt that will be used to fund a dividend.

With the add-on, the company is seeking an amendment to its existing credit facility to allow for the dividend, and pricing on its existing term loan will increase from Libor plus 325 bps with a 1% Libor floor to match pricing on the add-on term loan.

Lenders are being offered a 25-bps amendment fee.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

Schumacher readies loan

Schumacher Clinical Partners emerged with plans to hold a lender call at 10 a.m. ET on Thursday to launch a fungible $130 million add-on covenant-light first-lien term loan talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The spread and floor on the add-on matches existing first-lien term loan pricing, and all of the debt will get 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of ECI Healthcare Partners Inc., a Traverse City, Mich.-based provider of healthcare solutions to emergency physicians, hospitalist physicians, urgent cares, outpatient physician practices and telemedicine programs.

Closing is expected by the end of the second quarter, subject to customary conditions and regulatory approvals.

Schumacher is a Lafayette, La.-based provider of outsourced emergency and hospital medicine clinical staffing services.

Verisk Health on deck

Verisk Health set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch its senior secured credit facility, according to a market source.

It was previously disclosed that the company would be getting $455 million in debt financing.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by Veritas Capital from Verisk Analytics Inc. for $820 million, comprised of $720 million of cash consideration, a $100 million long-term subordinated promissory note with interest paid in kind, and other contingent consideration.

Closing is expected by June 30, subject to regulatory approvals and other customary conditions.

Verisk Health is a Waltham, Mass.-based healthcare services company.

McGraw-Hill closes

In other news, McGraw-Hill Global Education Holdings LLC completed its $1,925,000,000 credit facility, consisting of a $350 million five-year revolver and a $1,575,000,000 six-year first-lien covenant-light term loan, a news release said.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1,305,000,000 as the company’s bond deal was downsized to $400 million from $670 million, the spread was cut from Libor plus 475 bps and the discount tightened from 99.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Barclays, Goldman Sachs Bank USA, Jefferies Finance LLC, RBC Capital Markets and Wells Fargo Securities LLC led the deal that was used by the New York-based provider of education materials to refinance existing debt, merge McGraw-Hill School Education into the McGraw-Hill Global Education credit group and fund a dividend.

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