BRP frees up; Conservice accelerates term loan deadline; Mohegan discloses guidance

By Sara Rosenberg

New York, May 6 – BRP Inc. (Bombardier Recreational Products Inc.) trimmed the spread on its term loan B-2, finalized the original issue discount at the tight end of talk and modified the call protection before making its way into the secondary market on Wednesday.

In more happenings, Conservice Midco LLC moved up the commitment deadline for its term loan and Mohegan Tribal Gaming Authority announced price talk on its first-lien term loan.

BRP revised, breaks

BRP cut pricing on its $600 million term loan B-2 (B1/BB-) due May 24, 2027 to Libor plus 500 basis points from Libor plus 550 bps, firmed the original issue discount at 97, the tight end of the 96 to 97 guidance, and changed the call protection to 102 in year one and 101 in year two from 103 in year one, 102 in year two and 101 in year three, a market source remarked.

The term loan still has a 1% Libor floor.

Commitments were due at noon ET on Wednesday and the term loan B-2 freed to trade later in the day, with levels quoted at 98¼ bid, 99¼ offered, a trader added.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are leading the deal that will be used for general corporate purposes.

Closing is expected on Friday.

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Conservice tweaks timing

Conservice accelerated the commitment deadline for its $475 million seven-year covenant-lite first-lien term loan (B2/B) to noon ET on Thursday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 93 and 101 soft call protection for one year.

The company’s $715 million of credit facilities also include a $50 million revolver (B2/B) and a $190 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC and Golub are the lead arrangers on the deal.

Proceeds will be used to help fund a significant strategic investment in the company by Advent International, who will join existing investor TA Associates.

Conservice is a Logan, Utah-based provider of utility management software and billing solutions to property owners and managers.

Mohegan proposed terms

Mohegan Tribal Gaming Authority came out with price talk on its $100 million first-lien term loan due October 2021 at Libor plus 1,200 bps with a 1% Libor floor and an original issue discount of 97, a market source said.

As previously reported, the term loan is non-callable for nine months, then at 50% of the coupon for three months and then at 25% of the coupon for three months.

Commitments are due at noon ET on Monday.

A lender call for the loan took place on Tuesday but price talk was unavailable until Wednesday.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the deal that will be used to refinance revolver borrowings and for general corporate purposes.

Along with the term loan, the company is seeking an amendment to its credit facility to revise required maintenance covenants as a result of Covid-19, and is offering existing consenting lenders a 25 bps amendment fee.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.