CoreCivic shelves term loan B, contemplates options; Areas Worldwide modifies loan terms

By Sara Rosenberg

New York, July 3 – CoreCivic Inc. placed syndication of its term loan B on hold for now and is contemplating moving to a term loan A structure, and Areas Worldwide widened spreads and original issue discounts on its U.S. and euro term loans on Wednesday.

And, in more new deal happenings, Whatabrands LLC joined the near-term primary calendar.

CoreCivic on hold

CoreCivic’s $250 million seven-year covenant-lite term loan B (Ba1/BBB-/BBB-) has been tabled for the time being, according to a market source.

The company is considering pivoting to a term loan A “given bank support”, the source said, but that decision is still to be determined.

The term loan B was launched to investors in early June at talk of Libor plus 225 basis points with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Citizens Bank, SunTrust Robinson Humphrey Inc. and PNC Bank were the bookrunners on the deal and joint lead arrangers with Regions Bank.

Proceeds were going to be used to refinance revolving credit facility borrowings and add cash to the balance sheet.

CoreCivic is a Nashville, Tenn.-based owner of partnership correctional, detention and residential reentry facilities.

Areas revises deal

Areas Worldwide lifted pricing on its €200 million equivalent U.S. dollar seven-year term loan B to Libor plus 500 bps from talk in the range of Libor plus 450 bps to 475 bps, and on its €850 million seven-year term loan B to Euribor plus 475 bps from Euribor plus 425 bps, a market source said.

Additionally, the original issue discount on the both term loans was changed to 99 from 99.5, the source added.

The term loans have a 0% floor and 101 soft call protection for one year.

The concession catering company’s €1,325,000,000 of credit facilities (B1/B) also include a €125 million 6.5-year revolver and a €150 million seven-year acquisition and capex facility.

BNP Paribas, Credit Agricole, Deutsche Bank and Morgan Stanley are the physical bookrunners on the deal and BofA Securities Inc. is a passive bookrunner.

The new debt will be used to help fund the buyout of the company by PAI Partners from Elior Group in a transaction with an enterprise value of €1,542,000,000.

Closing is expected this summer, subject to customary conditions.

Whatabrands on deck

Whatabrands set a lenders’ presentation for 10 a.m. ET on Tuesday to launch $1.53 billion of senior secured credit facilities, a market source remarked.

The facilities consist of a $200 million revolver and a $1.33 billion first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the buyout of Whataburger by BDT Capital Partners LLC.

Closing is expected later this summer, subject to regulatory approval and other customary conditions.

Whatabrands is a San Antonio, Texas-based restaurant company.

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