Pike, Herschend Entertainment, Cross Insurance, Asplundh Tree Expert free to trade

By Sara Rosenberg

New York, Aug. 19 – Pike Corp. trimmed the spread on its first-lien term loan B and finalized the original issue discount at the tight side of guidance, and Herschend Entertainment Co. LLC increased the size of its term loan and firmed the spread, and then both of these deals broke for trading on Wednesday.

Also, Cross Insurance (Cross Financial Corp.) modified the issue price on its first-lien term loan B before making its way into the secondary market, and Asplundh Tree Expert LLC’s term loan B freed to trade as well.

Pike updated, breaks

Pike lowered pricing on its $336 million covenant-lite first-lien term loan B (Ba3/BB-) due July 24, 2026 to Libor plus 300 basis points from Libor plus 325 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Wednesday and the term loan started trading later in the day, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with $500 million of senior unsecured notes to refinance an existing term loan B and pay related fees and expenses.

Closing is expected on Aug. 26.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Herschend revised, trades

Herschend Entertainment raised its five-year term loan B to $500 million from $465 million and finalized pricing at Libor plus 575 bps, the low end of revised talk of Libor plus 575 bps to 600 bps that was announced in the morning but the high end of initial talk of Libor plus 550 bps to 575 bps, a market source remarked.

The term loan still has a 1% Libor floor, an original issue discount of 96, and call protection of non-callable for one year, then at 101 in year two.

After terms finalized, the term loan B freed to trade and levels were quoted at 96½ bid, 97½ offered, a trader added.

J.P. Morgan Securities LLC is leading the deal, which will be used to refinance existing debt and add cash to the balance sheet.

Herschend is a Peachtree Corners, Ga.-based operator of consumer entertainment attractions including amusement parks, waterparks, aquariums, adventure tours, dinner shows, lodging and the Harlem Globetrotters.

Cross tweaked, frees up

Cross Insurance changed the original issue discount on its $350 million seven-year covenant-lite first-lien term loan B (B2/B) to 99 from talk in the range of 97.5 to 98, a market source remarked.

The term loan is still priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan broke for trading in the afternoon at 99¼ bid, 99¾ offered, a trader added. Trading levels then moved up to 99 3/8 bid, 99 7/8 offered by the end of the day.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing credit facilities, repurchase shares from some equity holders, fund near-term acquisitions and pay related fees and expenses.

Cross Insurance is an insurance broker.

Asplundh hits secondary

Asplundh Tree Expert’s $2 billion seven-year covenant-lite term loan B began trading as well, with levels quoted at par 1/8 bid, par 3/8 offered on the break, a market source said. The loan then traded up to par 3/8 bid, par 5/8 offered and then settled in at par ¼ bid, par ½ offered.

Pricing on the term loan is Libor plus 250 bps with a step-down to Libor plus 225 bps when first-lien net leverage is less than 2x and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Tuesday, pricing on the term loan was reduced from Libor plus 275 bps, the step-down was added and the discount was revised from talk in the range of 98.5 to 99.

The company’s $2.75 billion of credit facilities (Ba1/BBB-) also include a $750 million revolver.

Wells Fargo Securities LLC, BofA Securities, Inc., PNC and Citizens Bank are leading the deal that will be used to fund a shareholder distribution, refinance existing debt and pay related fees and expenses.

Asplundh is a Pennsylvania-based provider of vegetation management services.

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