Hargray Communications, Oryx Midstream free to trade; Digital Room finalizes loan terms

By Sara Rosenberg

New York, May 10 – Hargray Communications Group Inc. increased the size of its incremental first-lien term loan and set the original issue discount at the tight end of guidance, and then the debt broke for trading on Friday above its issue price.

Another deal to make its way into the secondary market during the session was Oryx Midstream Services (Lower Cadence Holdings LLC).

In other news, Digital Room Holdings Inc. finalized spreads on its first-and second-lien term loans at the high side of talk and firmed the original issue discount at the wide end of guidance and extended the call protection on the first-lien debt, and Vertafore Inc. surfaced with new deal plans.

Hargray updated, trades

Hargray Communications lifted its fungible incremental first-lien term loan B (B2/B+) due May 2024 to $50 million from $45 million and finalized the original issue discount at 99.25, the tight end of the 99 to 99.25 talk, a market source remarked.

Like the existing loan, the incremental first-lien term loan is priced at Libor plus 275 basis points with a step-up to Libor plus 300 bps at 4.75 times first-lien net leverage and a 1% Libor floor.

The incremental first-lien term loan began trading on Friday morning, with levels quoted at 99½ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Antares Capital are leading the deal that will be used to refinance a revolver draw and add cash to the balance sheet.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

Oryx frees up

Oryx Midstream Services’ credit facilities also surfaced in the secondary market, with the $1.5 billion seven-year term loan B (B2/B/BB) quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

On Thursday, pricing on the term loan was reduced from Libor plus 450 bps and the discount firmed at the tight end of the 98.5 to 99 talk.

The company’s $1.65 billion of credit facilities also include a $150 million five-year super-priority revolver.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners from Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors for about $3.6 billion, to refinance debt, to fund the required reserve accounts and for general corporate purposes.

Oryx is a Midland, Texas-based midstream crude operator in the Permian Basin.

Digital Room tweaked

Back in the primary market, Digital Room firmed pricing on $280 million seven-year first-lien term loan (B2/B-) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, finalized the original issue discount at 98.5, the wide end of the 98.5 to 99 talk, and extended the 101 soft call protection to one year from six months, while leaving the 0% Libor floor unchanged, a market source said.

As for the $85 million eight-year second-lien term loan (Caa2/CCC), the spread was set at Libor plus 900 bps, the high end of the Libor plus 875 bps to 900 bps talk, the source continued. This tranche still has a 0% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

The company’s $395 million of credit facilities also include a $30 million revolver (B2/B-).

KKR Capital Markets, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading the deal that will be used for a dividend recapitalization.

H.I.G. Capital is the sponsor.

Digital Room is an e-commerce provider in the online short-run print market.

Vertafore joins calendar

Vertafore set a lender call for Monday to launch a fungible $170 million add-on covenant-lite first-lien term loan, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with 0% Libor floor.

Golub Capital is leading the deal that will be used to fund an acquisition.

The existing first-lien term loan is sized at about $1.6 billion.

Bain Capital and Vista Equity Partners are the sponsors.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Flow Control allocates

Flow Control (FR Flow Control Luxco 1 Sarl) allocated on Friday its $290 million of credit facilities, a market source remarked.

The facilities consist of a $40 million five-year revolver (B3/B), a $180 million seven-year term loan B (B3/B) and a $70 million seven-year cash collateralized term loan C (Ba3/BB-).

The revolver is priced at Libor plus 600 bps with a 0% Libor floor and issued with a 1% upfront fee.

Pricing on the term loans is Libor plus 600 bps with a 1% Libor floor and they were sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

BNP Paribas Securities Corp. and Natixis are leading the deal that will be used to help fund the buyout of the company by First Reserve from the Weir Group plc for an enterprise value of £275 million, payable in cash and subject to customary working capital and debt-like adjustments at closing.

Closing is expected this quarter, depending on antitrust approvals and other customary conditions.

Flow Control is a designer, manufacturer and aftermarket services provider of engineered valves and pumps used in energy and broader industrial applications.

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