Consolidated Communications frees up; Starwood Property loan changes surface

By Sara Rosenberg

New York, Sept. 18 – Consolidated Communications Inc. tightened the original issue discount on its term loan B and then the debt made its way into the secondary market on Friday.

In other news, Starwood Property Mortgage increased the size of its incremental term loan, lowered the spread and modified the issue price.

Additionally, Alliance Laundry Systems and Southern Veterinary Partners LLC joined the near-term primary calendar.

Consolidated tweaked, breaks

Consolidated Communications adjusted the original issue discount on its $1.25 billion seven-year senior secured term loan B (B2/B+) to 98.5 from talk in the range of 97 to 98, according to a market source.

As before, the term loan is priced at Libor plus 475 basis points with a 1% Libor floor and has 101 soft call protection for six months.

Previously in syndication, the term loan was lifted from $1 billion as the company’s senior secured note offering was trimmed to $750 million from $1 billion.

Recommitments were due at 10 a.m. ET on Friday and the term loan broke for trading later in the day, with levels quoted at 99˝ bid, par offered, another source added.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt in connection with a $425 million investment in the company by Searchlight Capital Partners LP.

Consolidated Communications is a Mattoon, Ill.-based broadband and business communications provider.

Starwood revised

Starwood Property Mortgage raised its non-fungible incremental term loan B to $250 million from $200 million, cut pricing to Libor plus 350 bps from Libor plus 375 bps and tightened the original issue discount to 99 from 98.5, a market source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance notes and for general corporate purposes.

Starwood Property Mortgage is a finance company.

Alliance Laundry sets call

Alliance Laundry Systems emerged with plans to hold a lender call at 10 a.m. ET on Monday to launch a $1.25 billion term loan, according to a market source.

UBS Investment Bank is leading the deal that will be used to refinance existing debt.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

Southern Veterinary on deck

Southern Veterinary Partners set a bank meeting for 11 a.m. ET on Tuesday to launch $665 million of credit facilities, a market source remarked.

The facilities consist of a $30 million five-year revolver (B2), a $435 million seven-year senior secured first-lien term loan (B2), a $60 million delayed-draw first-lien term loan (B2) that has an 18-month commitment and will be sold as a strip with the first-lien term loan, and a $140 million eight-year senior secured second-lien term loan (Caa2), the source added.

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.

Jefferies LLC is leading the deal that, which will be used to refinance the company’s existing capital structure.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

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