Live Nation, Golden Nugget hit secondary; Patriot Rail, Stonepeak Lonestar revise deals

By Sara Rosenberg

New York, Oct. 11 – Live Nation Entertainment Inc. tightened the issue price on its term loan B and Golden Nugget LLC (Landry’s Inc.) adjusted the original issue discount on its incremental term loan B, and then both deals freed up for trading on Friday.

In more happenings, Patriot Rail & Ports widened the spread and original issue discount on its term loan, and extended the call protection, and Stonepeak Lonestar increased pricing and modified the issue price on its term loan.

Furthermore, Granite Energy LLC, Mediaocean LLC and Cole-Parmer Instrument Co. (Curie Merger Sub LLC) joined the near-term primary calendar.

Live Nation updated

Live Nation Entertainment modified the original issue discount on its $950 million term loan B to 99.875 from talk in the range of 99.5 to 99.75, and left pricing at Libor plus 175 basis points with a 0% Libor floor, according to a market source.

The term loan B still has 101 soft call protection for six months.

The company’s $1.85 billion of senior secured credit facilities (Ba1/BB) also include a $500 million revolver and a $400 million delayed-draw term loan A.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Bank of Nova Scotia, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal.

Live Nation frees up

Recommitments for Live Nation’s term loan B were due at 1 p.m. ET on Friday and the debt began trading in the afternoon, with levels quoted at par bid, par ½ offered, another source added.

Proceeds from the new bank debt will be used with $950 million of senior notes to refinance existing credit facilities, to redeem 5 3/8% senior notes and for general corporate purposes, including to fund acquisitions.

Live Nation is a Beverly Hills, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Golden tweaked, breaks

Golden Nugget changed the original issue discount on its $300 million incremental term loan B (Ba3/B+) due Oct. 4, 2023 to 99.75 from 99.5, a market source remarked.

The incremental loan is priced at Libor plus 275 bps with a 0.75% Libor floor, in line with existing term loan B pricing.

Recommitments were due at noon ET on Friday and the loan freed to trade later in the session, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Jefferies LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Rabobank, KeyBanc Capital Markets, Citizens Bank and Capital One are leading the deal that will be used to fund the acquisition of Del Frisco’s Double Eagle Steakhouses and the Del Frisco’s Grilles from L Catterton.

Closing is expected on Oct. 29.

The incremental term loan is expected to be fungible upon closing of the transaction.

Golden Nugget is a diversified restaurant, hospitality, entertainment and gaming company.

Delek levels emerge

Also in trading, Delek US Holdings Inc.’s fungible $150 million add-on covenant-lite term loan B due March 30, 2025 was quoted at 99 bid, 99¼ offered on Friday morning, after allocating late Thursday, a market source said.

Pricing on the add-on term loan is Libor plus 225 bps with a 0% Libor floor and it was sold at an original issue discount of 98.79. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to add cash to the balance sheet for future investment in gathering and processing assets.

The company’s existing term loan B is sized at $938 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Patriot sets changes

Back in the primary market, Patriot Rail & Ports lifted pricing on its $285 million seven-year term loan B to Libor plus 525 bps from talk in the range of Libor plus 475 bps to 500 bps, moved the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan has a 0% Libor floor and 50 bps MFN for life.

The company’s $325 million of credit facilities (B2/B) also include a $40 million revolver.

Recommitments were due at 5 p.m. ET on Friday and allocations are targeted for Tuesday morning, the source added.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by First State Investments.

Closing is expected in the fourth quarter.

Patriot Rail is a Jacksonville, Fla.-based owner of a portfolio of short-line railroads, port terminals and related infrastructure assets, providing transportation and logistics solutions.

Stonepeak flexes up

Stonepeak Lonestar increased pricing on its $800 million term loan B (B1) to Libor plus 450 bps from Libor plus 425 bps and revised the original issue discount to 98.5 from 99, a market source remarked.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Friday, the source added.

Macquarie Capital (USA) Inc., Natixis and Credit Agricole are leading the deal that will be used for a recapitalization.

Stonepeak Lonestar is the holder of Stonepeak Infrastructure Partners’ interests in the Gulf Coast Express Pipeline, Grand Prix Pipeline and Targa Resources Corp.’s fractionation train 6 in Texas in a joint venture with Targa.

Granite joins calendar

Granite Energy set a lenders’ presentation for 2 p.m. in New York on Tuesday to launch $1.5 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $100 million revolver and a $1.4 billion first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing debt, fund a one-time distribution to shareholders, and pay related fees and expenses.

Granite Energy, which is backed by LS Power, is a power producer with about 4,800 MW of clean, high-quality natural gas-fired generation located in the PJM market.

Mediaocean on deck

Mediaocean scheduled a bank meeting for 12:30 p.m. ET on Wednesday to launch $743 million of senior secured credit facilities (B2/B), a market source said.

The facilities consist of a $50 million revolver and a $693 million term loan, the source added.

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Golub Capital and Jefferies LLC are leading the deal that will be used to refinance existing debt and pay a dividend to the company’s sponsor.

Mediaocean is a New York-based software company for the advertising sector.

Cole-Parmer readies deal

Cole-Parmer emerged with plans to hold a bank meeting at noon ET on Wednesday to launch a $770 million seven-year first-lien term loan, according to a market source.

The company’s $1.09 billion equivalent of credit facilities also include a $75 million revolver and a $245 million equivalent privately placed eight-year second-lien term loan, the source said.

Jefferies LLC is the left lead on the deal that will be used to help fund the acquisition of a majority stake in the company by GTCR. Golden Gate Capital and management will retain a significant minority stake in the company.

Closing is expected in the fourth quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

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