CCFC, TKC, Ability Network break; Autodata, Sinclair, Wheelabrator, Hanesbrands revised

By Sara Rosenberg

New York, Dec. 11 – Deals from Calpine Construction Finance Corp. (CCFC) and TKC Holdings Inc. hit the secondary market on Monday, and Ability Network Inc. freed to trade after the original issue discount on its second-lien term loan was tightened.

In more happenings, Autodata Inc. moved some funds between its first-and second-lien term loan and tightened spreads and issue prices on both tranches, and Sinclair Television Group Inc. firmed the spread on its incremental term loan at the low end of talk and revised issue price guidance.

Also, Wheelabrator Technologies Inc. (Granite Acquisition Inc.) raised pricing on its incremental term loan C and repricing transactions, and HanesBrands trimmed the spread on its term loan B.

Furthermore, Switch Ltd., Dynegy Inc., North American Bancard (NAB Holdings LLC) and Sungard Availability Services disclosed talk with launch, and Sedgwick Claims Management Services Inc. and Western Generation Partners (WGP Acquisition LLC) surfaced with new deal plans.

Calpine Construction frees up

Calpine Construction Finance’s $1 billion covenant-light first-lien term loan (Ba2/BB) due January 2025 began trading on Monday, with levels quoted at par bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 250 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Friday, the discount on the term loan was tightened from talk in the range of 99.5 to 99.75.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., MUFG, Barclays, Goldman Sachs Bank USA, Credit Agricole, RBC Capital Market, BNP Paribas Securities Corp. and UBS Investment Bank are leading the deal that will be used to refinance existing term loan B-1 and term loan B-2 debt.

Parent company Houston-based Calpine Corp., is issuing $560 million of add-on senior secured notes, upsized recently from $550 million, to refinance a portion of Calpine Construction’s term loans as well.

Calpine Construction is an owner and operator of 4.4 GW of power generation capacity.

TKC hits secondary

TKC Holdings’ incremental term loans freed to trade too, with the $60 million incremental first-lien term loan due February 2023 seen at par ½ bid, par ¾ offered and the $45 million incremental second-lien term loan due February 2024 seen at par ½ bid, 101½ offered, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The incremental loan and the existing first-lien term loan are getting 101 soft call protection for six months.

The incremental second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99.5.

Jefferies LLC and KKR Capital Markets are leading the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Proceeds will be used to fund a distribution to shareholders.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry, and a provider of in-room coffee service to hotels and motels.

Ability tweaked, trades

Ability Network modified the original issue discount on its $150 million eight-year second-lien term loan (Caa2/CCC) to 99.5 from 99 and left pricing at Libor plus 775 bps with a 0% Libor floor, a market source said.

The company’s $545 million of senior secured credit facilities also include a $20 million five-year revolver (B2/B-), and a $375 million seven-year first-lien term loan (B2/B-) priced in line with talk at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5.

As before, the first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Recommitments were due at noon ET and then the debt broke for trading, with the first-lien loan quoted at 99¾ bid, par ½ offered and the second-lien loan quoted at par bid, 101 offered, a trader added.

Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to refinance existing debt, support continued investment in growth initiatives for the business and fund a distribution to Summit Partners and other shareholders.

Ability is a Minneapolis-based provider of web-based connectivity and workflow solutions that simplify clinical and administrative tasks for healthcare providers.

Autodata restructured

Autodata lifted its seven-year covenant-light first-lien term loan to $280 million from $260 million, reduced pricing to Libor plus 325 bps from talk in the range of Libor plus 375 bps to 400 bps and moved the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and the 101 soft call protection for six months intact, according to a market source.

Additionally, the company decreased its eight-year covenant-light second-lien term loan to $80 million from $100 million, trimmed pricing to Libor plus 725 bps from talk in the range of Libor plus 775 bps to 800 bps, changed the discount to 99.5 from 99 and modified the call protection to a 101 hard call for one year from 102 in year one and 101 in year two, the source said. This tranche still has a 0% Libor floor.

Also, the MFN was changed to 75 bps for six months from 75 bps for 12 months.

Recommitments were due at 2 p.m. ET on Monday, the source added.

RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to capitalize the business as a stand-alone entity.

Kohlberg Kravis Roberts & Co. LP is the sponsor.

Autodata, which was carved out of Internet Brands Inc., is a provider of data and software solutions that power the automotive industry.

Sinclair updated

Sinclair Television firmed pricing on its $3,725,000,000 incremental term loan B (Ba1/BB+) due 2024 at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and changed the original issue discount talk to a range of 99.5 to 99.75 from just 99.5, a market source remarked.

Also, the ticking fee was revised to half the spread from days 31 to 60, the full spread from days 61 to 120 and the full spread plus Libor thereafter, from half the spread from days 46 to 90, the full spread from days 91 to 120 and the full spread plus Libor thereafter.

The term loan still has a 0% Libor floor.

Recommitments were due at 2 p.m. ET on Monday, the source added.

JPMorgan Chase Bank, RBC and Deutsche Bank Securities Inc. are leading the deal.

Sinclair buying Tribune

Proceeds from Sinclair’s term loan B will be used with cash on hand to purchase the outstanding shares of Tribune Media Co., to refinance some of Tribune’s existing debt, to pay costs and expenses expected to be incurred in connection with the acquisition and for general corporate purposes.

Tribune is being bought for $43.50 per share, for an aggregate purchase price of about $3.9 billion, plus the assumption of around $2.7 billion in net debt. Tribune stockholders will receive $35.00 in cash and 0.23 of a share of Sinclair class A common stock for each share of Tribune class A common stock and class B common stock they own.

Closing is expected this quarter subject to approval by Tribune’s stockholders and customary conditions, including approval by the Federal Communications Commission and antitrust clearance.

Sinclair is a Hunt Valley, Md.-based television broadcasting company. Tribune is a Chicago-based owner of television and digital properties.

Wheelabrator ups spread

Wheelabrator Technologies lifted pricing on its incremental $125 million term loan C due December 2021, repricing of its existing $48 million term loan C due December 2021 and repricing of its existing $1.21 billion term loan B due December 2021 to Libor plus 350 bps from Libor plus 300 bps, according to a market source.

The term loans still have a 1% Libor floor and 101 soft call protection for six months, the incremental loan still has an original issue discount of 99.5 and the repricings still have a par issue price.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal.

The incremental loan will be used to fund letters of credit, and the repricings will take the existing term loan B and C debt down from Libor plus 400 bps with a 1% Libor floor.

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

Wheelabrator amending

Wheelabrator is also looking to amend its credit agreement, including its existing $247 million second-lien term loan due December 2022.

Through the amendment, the accordion free and clear basket shared between the first- and second-lien term loans will be reduced to $150 million from $350 million, a 1.1 times minimum debt service coverage ratio covenant will be added, and the capital structure will be portable with a change-of-control subject to ratings reaffirmation.

Pricing on the second-lien loan will be unchanged at Libor plus 725 bps with a 1% Libor floor but lenders will get 101 soft call protection for six months and a 5 bps consent fee.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

HanesBrands lowers pricing

HanesBrands reduced the spread on its $500 million seven-year term loan B (Baa3/BBB-) to Libor plus 175 bps from talk in the range of Libor plus 200 bps to 225 bps, while leaving the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, according to a market source.

Commitments continue to be due at noon ET on Wednesday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing $318.6 million term loan B due April 2022 that is priced at Libor plus 250 bps with a 0.75% Libor floor.

The company is also looking to increase the size, reduce the rate and extend the maturity of its term loan A, reduce the rate and extend the maturity of its revolver, and achieve other favorable credit agreement improvements.

Closing is anticipated by year-end.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

Switch reveals talk

In more primary happenings, Switch held its lender call on Monday, launching its $598.5 million covenant-light term loan B due June 2024 at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Friday.

BMO Capital Markets 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 step-down to Libor plus 250 bps and a 0% Libor floor.

Switch is a Las Vegas-based developer and operator of data centers.

Dynegy comes to market

Dynegy launched in the morning a $2,018,000,000 senior secured term loan B (Ba3/BB) due February 2024 talked at Libor plus 275 bps with a 25 bps based step-down if at least Ba3/BB- corporate ratings, a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Current corporate ratings are B2/B+.

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

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Investment Bank, Barclays and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Dynegy is a Houston-based energy company.

NAB holds call

North American Bancard surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $638 million covenant-light first-lien term loan (B2/B) due June 2024 talked at Libor plus 300 bps with a 25 bps step-down at senior secured net leverage of less than 2.75 times, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan due June 2024 priced at Libor plus 325 bps with a 1% Libor floor.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Sungard seeks extension

Sungard Availability Services held a call to launch an extension of its $425 million term loan B by three years to Oct. 1, 2022 from 2019, a market source said.

KKR Capital Markets is the lead on the deal.

Talk on the extended term loan is Libor plus 1,000 bps with a 1% Libor floor, an original issue discount of 98 for new money and a par issue price for rollover commitments, the source added. The extended loan has a T+50 make whole premium and change of control premium of 103.

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

Existing lenders that roll at least 75% of holdings will get a 25% paydown on the principal amount before the extension.

Current pricing on the term loan B is Libor plus 500 bps with a 1% Libor floor.

SunGard Availability Services is a Wayne, Pa.-based provider of disaster recovery services, managed IT services, information availability consulting services and business continuity management software.

Sedgwick readies loans

Sedgwick Claims Management Services will hold a lender call at 10 a.m. ET on Tuesday to launch $935 million in term loans, a market source remarked.

The debt consists of a fungible $735 million incremental first-lien term loan (B) due 2021 and a $200 million second-lien term loan (CCC+) due 2022, the source added.

KKR Capital Markets is leading the deal that will be used to fund the acquisition of Cunningham Lindsey, a Tampa, Fla.-based loss adjusting, claims management and risk solutions firm.

Closing is subject to customary conditions and regulatory approvals.

Sedgwick, which is majority owned by KKR, is a Memphis, Tenn.-based provider of technology-enabled risk and benefits solutions.

Western Generation on deck

Western Generation Partners set a lender call for 10:30 a.m. ET on Tuesday to launch a repricing of its roughly $235 million term loan B, according to a market source.

MUFG is leading the deal that will reprice the loan from Libor plus 400 bps with a 1% Libor floor.

Harbert Management Corp., UBS Asset Management and Northwestern Mutual are the sponsors.

Western Generation is the owner of 12 power plants representing approximately 1,500 MW of contracted thermal power plants.

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