Millennium Trust breaks; UPC Holding gains ground; Orchid Orthopedic sets loan terms

By Sara Rosenberg

New York, Feb. 27 – Millennium Trust Co. (Minotaur Acquisition Inc.) firmed pricing on its first-lien term loan at the wide end of talk and added a leverage-based step-down before freeing up for trading on Wednesday afternoon.

Also in the secondary market, UPC Holding’s term loan AR was a bit stronger after the company disclosed plans to pay down the debt in full.

In other news, Orchid Orthopedic Solutions finalized the spread on its first-lien term loan at the high side of guidance, and Terex Corp., Wynn Resorts Ltd. and Windstream Services LLC joined this week’s primary calendar.

Millennium tweaks deal

Millennium Trust set the spread on its $610 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 500 basis points, the wide side of the Libor plus 475 bps to 500 bps talk, and added a 25 bps step-down at 3.75 times first-lien net leverage, according to a market source.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

The company’s $945 million of credit facilities also include a $90 million revolver (B2/B) and a $245 million privately placed second-lien term loan (Caa2/CCC).

Credit Suisse Securities (USA) LLC, Antares Capital, BNP Paribas Securities Corp., SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are leading the deal.

Millennium hits secondary

Recommitments for Millennium Trust’s first-lien term loan were due at 1 p.m. ET on Wednesday and then the debt freed to trade in the afternoon, with levels quoted at 98¼ bid, 98¾ offered, another source added.

Proceeds from the credit facilities will be used to help fund the buyout of the company by Abry Partners.

Parthenon Capital Partners will retain a minority stake in Millennium Trust.

Closing is subject to customary conditions and regulatory approvals.

Millennium Trust is an Oak Brook, Ill.-based provider of technology-enabled retirement services and institutional custody solutions.

UPC heads higher

UPC Holding’s term loan AR rose an eighth of a point to 99 5/8 bid, 99¾ offered after the company said that the debt would be repaid in full at or prior to closing of the sale of UPC Switzerland to Sunrise Communications Group AG, a market source said.

There was about $1.6 billion outstanding under the term loan AR as of Dec. 31.

UPC Switzerland is being sold by parent company Liberty Global plc for a total enterprise value of CHF 6.3 billion.

Closing of the sale is expected prior to year-end, subject to regulatory approval.

UPC Holding is a provider of video, broadband internet and fixed-line telephone services.

Orchid Orthopedic updated

Back in the primary market, Orchid Orthopedic Solutions firmed pricing on its $485 million seven-year first-lien term loan (B2/B) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and made some documentation changes, a market source remarked.

The first-lien term loan still has a 25 bps leverage-based step-down, a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at the end of the day on Wednesday, the source added.

The company’s $745 million of credit facilities also include a $100 million revolver (B2/B) and a $160 million eight-year privately placed second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the buyout of the company by Nordic Capital Partners from Altor Fund III, which will retain a significant minority holding in Orchid Orthopedic.

Closing is subject to customary regulatory approvals.

Orchid Orthopedic is a Holt, Mich.-based designer and manufacturer of medical devices.

Terex readies loan

Terex set a lender call for 10 a.m. ET on Thursday to launch a non-fungible $200 million incremental first-lien term loan B-1 due Jan. 31, 2024 that has 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 6, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., Credit Agricole, Commerzbank and Barclays are leading the deal, which will be used to repay revolver borrowings.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

Wynn joins calendar

Wynn Resorts scheduled a lender call for 11:15 a.m. ET on Thursday to launch a $250 million add-on covenant-light first-lien term loan due October 2024, a market source said.

Like the existing term loan, the add-on term loan is priced at Libor plus 225 bps with a 0% Libor floor, and has 101 soft call protection through April 2019.

Original issue discount talk on the add-on term loan is not yet available.

Commitments are due at noon ET on March 6, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for general corporate purposes.

Wynn Resorts is a Las Vegas-based developer, owner and operator of destination casino resorts.

Windstream on deck

Windstream Services will hold a public side lender call followed by a private side lender call at 2 p.m. ET on Thursday for potential debtor-in-possession financing lenders, a market source remarked.

According to court documents, the company plans to get a $1 billion 24-month DIP, split between a $500 million revolver and a $500 million term loan.

Citigroup Global Markets Inc. is leading the deal that will be used to fund the company’s operational needs.

Windstream is a Little Rock, Ark.-based telecommunications provider.

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