Centuri Group flexes $1.15 billion term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, Aug. 17 – Centuri Group Inc. reduced pricing on its $1.145 billion seven-year covenant-lite term loan B (Ba2/BB-) to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

Furthermore, the original issue discount on the term loan firmed at 99, the wide end of the 99 to 99.5 talk, the source said.

The term loan still has a 0.5% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Security is a first priority lien on substantially all assets, subject to real property and other customary exclusions.

Wells Fargo Securities LLC and BofA Securities Inc. are the lead arrangers on the deal.

Commitments continue to be due at noon ET on Wednesday, the source added.

Proceeds will be used to support the $855 million acquisition of Riggs Distler & Co. Inc., a Cherry Hill, N.J.-based utility services contractor, and to refinance existing credit facilities.

Closing is expected in the third quarter.

Centuri, a wholly owned subsidiary of Southwest Gas Holdings Inc., is a Phoenix-based utility services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers.

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