Denali Water term loan changes surface; TerraForm modifies commitment deadline

By Sara Rosenberg

New York, May 9 – In the primary market on Monday, Denali Water Solutions LLC raised the spread on its incremental term loan, removed the CSA and finalized the original issue discount at the tight end of guidance.

Also, TerraForm Power moved up the commitment deadline for its first-lien green term loan, and Opry Entertainment Group (OEG Borrower LLC) joined this week’s new-issue calendar.

Denali tweaked

Denali Water Solutions lifted pricing on its $185 million incremental term loan to SOFR plus 462.5 basis points from SOFR plus 450 bps, removed the CSA and set the original issue discount at 96.5, the tight end of the 96 to 96.5 talk, according to a market source.

At launch, the term loan was talked with CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

As before, the term loan has a 0.75% floor and 101 soft call protection for six months.

Allocations went out on Monday, the source added.

UBS Investment Bank is leading the deal that will be used to fund the acquisition of Imperial Western Products, a Coachella, Calif.-based company involved in procurement, processing, services, manufacturing, transporting, warehousing, distribution and merchandising.

Denali Water Solutions is a Russellville, Ark.-based specialty waste and environmental services company.

TerraForm accelerated

TerraForm revised the commitment deadline for its $500 million seven-year first-lien green term loan (BB+/BB+) to noon ET on Tuesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is SOFR+10 bps CSA plus 275 bps to 300 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Brookfield Asset Management is the sponsor.

TerraForm is a New York-based owner and operator of a renewable power portfolio including solar and wind assets.

Opry on deck

Opry Entertainment set a lender call for 2:30 p.m. ET on Tuesday to launch a $300 million seven-year term loan B, according to a market source.

Commitments are due at noon ET on May 19, the source added.

JPMorgan Chase Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund a recapitalization in connection with the purchase of a 30% interest in the company by Atairos group and NBCUniversal. Ryman Hospitality Properties Inc. will retain a controlling 70% interest in Opry.

Upon closing, Ryman expects to receive gross transaction proceeds of about $593 million, comprised of the Atairos and NBCUniversal investment and borrowings from the term loan B.

Ryman expects to use these proceeds to pay transaction expenses, and fully repay its $300 million term loan A and substantially all the borrowings outstanding under its revolver.

Closing is expected this quarter.

Opry is a provider of multi-platform entertainment experiences through a portfolio of entertainment venues.

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