LifeMiles frees to trade; Centuri, Teaching Strategies, 8th Avenue Food changes surface

By Sara Rosenberg

New York, Aug. 17 – LifeMiles Ltd.’s first-lien term loan B made its way into the secondary market on Tuesday, with levels quoted above its original issue discount.

Meanwhile, in the primary market, Centuri Group Inc. trimmed the spread on its term loan B and set the issue price at the wide end of talk, and Teaching Strategies (Foundational Education Group Inc.) revised price talk on its first-lien term loan and widened the original issue discount.

Also, 8th Avenue Food & Provisions Inc. firmed the original issue discount on its incremental first-lien term loan at the wide end of guidance and sweetened the call protection.

LifeMiles hits secondary

LifeMiles’ $400 million five-year first-lien term loan B (B3/B-) freed to trade, with levels quoted at 99¼ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 525 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt is non-callable for one year, then has hard call protection of 102 in year two and 101 in year three.

During syndication, amortization on the term loan was increased to 10% per annum from 2.5% per annum, MFN was set for life for all term loans, the loophole was removed from Serta protection, a blocker was added to J. Crew protection, and changes were made to debt/lien general basket, timing of dividend, the blocker under available amount, investments, investments non-loan party basket, investments general basket, restricted payments general basket and restricted payments ratio basket blocker.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to refinance an existing term loan B, to pay a dividend and for general corporate purposes.

Closing is expected in late August/early September.

LifeMiles is a Latin American coalition loyalty program and operator of Avianca’s frequent flyer program.

Centuri cuts spread

Moving to the primary market, Centuri Group lowered pricing on its $1.145 billion seven-year covenant-lite term loan B (Ba2/BB-) to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

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

Wells Fargo Securities LLC and BofA Securities Inc. are leading the deal that 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.

Teaching Strategies tweaked

Teaching Strategies changed price talk on its $320 million seven-year covenant-lite first-lien term loan (B2/B-) to a range of Libor plus 400 bps to 425 bps from a range of Libor plus 375 bps to 400 bps and adjusted the original issue discount to 99 from 99.5, according to a market source.

As before, the first-lien term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Talk on the company’s $115 million eight-year covenant-lite second-lien term loan (Caa2/CCC) remained at Libor plus 650 bps to 675 bps with a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Wednesday, extended from 5 p.m. ET on Tuesday, the source added.

Deutsche Bank Securities Inc., KKR Capital Markets, Barclays and Macquarie Capital (USA) Inc. are leading the deal, with Deutsche the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The loans will be used to help fund the buyout of the company by KKR from Summit Partners.

Teaching Strategies is a provider of curriculum, assessment and family engagement tools to the early childhood education market.

8th Avenue updated

8th Avenue Food set the original issue discount on its $125 million incremental first-lien term loan (B2/B-) due Oct. 1, 2025 at 98.5, the wide end of the 98.5 to 99 talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

Pricing on the incremental term loan remained at Libor plus 475 bps with a 0.75% Libor floor.

Barclays is leading the deal that will be used to repay revolver drawings, which were used to finance a portion of the acquisition of Ronzoni, and for working capital needs and general corporate purposes.

8th Avenue Food is a Brentwood, Mo.-based consumer products holding company.

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