Calpine, ClubCorp, Valeant Pharmaceuticals free to trade; LightSquared changes surface

By Sara Rosenberg

New York, May 22 – Calpine Corp. reduced the size of its term loan B-5 and set the original issue discount at the tight end of guidance, and ClubCorp Club Operations Inc. firmed the spread on its term loan B at the wide side of talk, and then both deals freed up for trading on Friday.

Another deal to make its way into the secondary market was Valeant Pharmaceuticals International Inc., with levels on its series D term loan bid in line with the issue price.

Back in the primary market, LightSquared raised pricing on its first-lien term loan while sweetening the call protection and the ticking fee.

Calpine tweaked, breaks

Calpine downsized its seven-year senior secured term loan B-5 (Ba3) to $1.6 billion from $1.65 billion and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The B loan is still priced at Libor plus 275 basis points with a 0.75% Libor floor and has 101 soft call protection for six months.

After terms finalized on the B loan, the debt was able to break for trading late Friday morning and levels were quoted at 100 1/8 bid, 100 3/8 offered, a trader said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, MUFG Union Bank, Barclays and RBC Capital Markets LLC are leading the deal that will be used to refinance existing term loans due in 2018 and certain other term loan debt.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

ClubCorp updated, trades

ClubCorp set the spread on the repricing of its $901.1 million covenant-light senior secured term loan (B1) due July 24, 2020 at Libor plus 325 bps, the wide end of the Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, a source remarked.

The repricing will take the term loan down from Libor plus 350 bps with a 1% Libor floor.

With final pricing in place, the loan made its way into the secondary market in the morning, and levels were seen at 100 1/8 bid, 100 5/8 offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that is expected to close late in the week of May 25.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs, business, sports and alumni clubs.

Valeant hits secondary

Valeant Pharmaceuticals’ $1,109,000,000 series D term loan due February 2019 began trading during the session too, with levels quoted at par bid, 100 1/8 offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when net first-lien leverage is below 1.75 times and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the high end of the Libor plus 250 bps to 275 bps talk.

Proceeds will be used to reprice an existing D loan from Libor plus 300 bps with a 0.75% Libor floor.

Initially, the company was also seeking to reprice its $853 million series C term loan due December 2019 within talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor and a par issue price, from Libor plus 300 bps with a 0.75% Libor floor, but that repricing was cancelled during syndication.

Deutsche Bank Securities, Barclays, RBC Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal for the Laval, Quebec-based specialty pharmaceutical company.

Lightsquared revised

In more happenings, LightSquared widened pricing on its $1.75 billion five-year first-lien term loan to Libor plus 875 bps paid-in-kind from Libor plus 775 bps PIK and left the 1% Libor floor and original issue discount of 97 unchanged, according to a market source.

In addition, the call protection on the term loan was modified to non-callable for two years, then at 104 in year three and 102 in year four, from non-callable for one year, then at 102 in year two and 101 in year three, and the ticking fee was revised to 1% for the first 90 days, 1.5% for days 91 to 120, 2.5% for days 121 to 150 and 3% thereafter, from 1% for the first 120 days and an additional 1% after 120 days, the source said.

Commitments are due at 3 p.m. ET on May 29, pushed out from an original deadline of Wednesday.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the company’s exit from Chapter 11 and refinance debtor-in-possession facilities.

LightSquared is a Reston, Va.-based wireless communications company.

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