Alterra finalizes term loan at Libor plus 350 bps, may upsize

By Sara Rosenberg

New York, July 29 – Alterra Mountain Co. firmed pricing on its term loan B due 2028 (B2/B) at Libor plus 350 basis points, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

Also, the 12-month sunset was removed from MFN, and Serta language was fixed, the source said.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Proceeds will be used to reprice, extend and combine into one tranche an existing term loan B due 2024 and an existing term loan B-2 due 2026. The 2024 term loan B is currently sized at roughly $1.705 billion and the 2026 term loan B-2 is currently sized at $643 million.

The company removed the restriction for a $500 million leave behind of the 2024 term loan B, so the final loan size of the 2028 term loan will increase correspondingly from its original $1.848 billion size, the source said. The current expectation is that the 2024 term loan will have $200 million to $300 million outstanding.

JPMorgan Chase Bank is the left lead on the deal.

Recommitments were scheduled to be due at 3 p.m. ET on Thursday, the source added.

Alterra is a Denver-based mountain resort and adventure company.

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