iHeartCommunications sets discount; Huntsworth reveals talk; First Brand deadline emerges

By Sara Rosenberg

New York, July 15 – In the primary market on Wednesday, iHeartCommunications Inc. firmed the original issue discount on its term loan at the middle of guidance, and Huntsworth plc released price talk on its first-lien term loan with launch.

Furthermore, First Brands Group LLC announced the commitment deadline for its incremental first-lien term loan, and Tosca Services LLC joined this week’s new issue loan calendar.

iHeartCommunications updated

iHeartCommunications finalized the original issue discount on its $450 million senior secured term loan due 2026 (B1/B+) at 95.5, the middle of the 95 to 96 talk, according to a market source.

As before, the term loan is priced at Libor plus 400 basis points with a 0.75% Libor floor and has 101 soft call protection for one year.

BofA Securities, Inc. is the left lead on the deal that will be used to repay asset-based revolver borrowings and provide extra liquidity.

iHeartCommunications is a San Antonio-based media company.

Huntsworth sets guidance

Huntsworth held its lender call on Wednesday and announced talk on its $300 million seven-year first-lien term loan B (B2) at Libor plus 525 bps with a 0.5% Libor floor, an original issue discount of 96 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on July 29, the source added.

RBC Capital Markets is leading the deal that will be used to support the £575 million buyout of the company by Clayton, Dubilier & Rice, which was completed in May.

Other funds for the transaction came from a £75 million privately placed second-lien term loan.

Huntsworth is a London-based leading provider of healthcare marketing and communication services.

First Brands deadline

First Brands Group is seeking commitments by 3 p.m. ET on July 24 for its fungible $710 million incremental first-lien term loan due Feb. 2, 2024, a market source said.

As previously reported, talk on the incremental term loan, which launched with a call in the morning, is Libor plus 750 bps with a 1% Libor floor, an original issue discount of 94 and hard call protection of 102 in year one and 101 in year two.

Jefferies LLC is leading the deal that will be used to fund acquisitions.

Pro forma for the transaction, the first-lien term loan size will total about $1.479 billion.

Along with the incremental term loan, the company is seeking an amendment to increase its ABL size, modify the total net leverage covenant and consolidated adjusted EBITDA definition, increase the leverage governor on permitted acquisitions, remove the cap on cash netting for the consolidated total net debt definition, increase the basket for sales leaseback transactions and assign Jefferies the role of administrative agent.

Lenders are being offered a 1% amendment/exchange fee.

Consents for the amendment are due at 3 p.m. ET on July 22, the source added.

First Brands, formerly known as Trico Group, is an automotive aftermarket platform.

Tosca readies deal

Tosca set a lender call for 10 a.m. ET on Thursday to launch a $526.5 million seven-year first-lien term loan talked with a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Spread and original issue discount talk are not yet available, the source said.

Commitments are due at 5 p.m. ET on July 29.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Goldman Sachs Bank USA, Rabobank, KKR Capital Markets and Mizuho are leading the deal that will be used to fund the acquisition of Contraload NV, an Aartselaar, Belgium-based provider of upstream reusable plastic pallets and containers, and to refinance existing debt.

Tosca, an Apax Partners portfolio company, is an Atlanta-based provider of reusable packaging supply chain solutions.

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