Patagonia Holdco term loan B frees to trade; Corporation Service changes deadline

By Sara Rosenberg

New York, Aug. 5 – Patagonia Holdco LLC (Lumen Latin America) increased the size of its term loan B while cancelling plans for a senior secured notes offering, and then the debt made its way into the secondary market on Friday.

In more happenings, Corporation Service Co. (CSC) accelerated the commitment deadline for its term loan B.

Patagonia upsizes, breaks

Patagonia Holdco raised its seven-year term loan B (B1) to $1.3 billion from $800 million and eliminated plans for a $500 million senior secured notes offering, a market source remarked.

The term loan is priced at SOFR plus 575 basis points with a 0.5% floor and an original issue discount of 82, and has 101 soft call protection for one year.

During syndication, the discount on the term loan widened from 90, the call protection was extended from six months and revisions were made to documentation.

The term loan broke for trading on Friday, with levels quoted at 83 bid, another source added.

JPMorgan Chase Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Natixis, Deutsche Bank Securities Inc. and Bank of Nova Scotia are leading the deal that will be used to help fund the buyout of Lumen Technologies’ Latin American business by Stonepeak for $2.7 billion, which was completed on Monday.

Patagonia is a Latin American communications platform with a subsea, terrestrial fiber and data center footprint.

Corporation Service accelerated

Corporation Service moved up the commitment deadline for its $1.25 billion seven-year term loan B to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is SOFR+CSA plus 375 bps to 400 bps with a 0.5% floor, an original issue discount of 95 to 96, 101 soft call protection for one year and a ticking fee of the full margin after 30 days. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company has already syndicated a $1.955 billion term loan A priced at SOFR plus 250 bps and a €40 million term loan A.

BofA Securities Inc., Jefferies LLC and Wells Fargo Securities LLC are leading the deal (B1/BB-/BBB-) that will be used with cash on hand to fund the acquisition of Intertrust NV for €20 in cash per share, or about €1.8 billion, and to refinance existing debt.

Corporation Service is a Wilmington, Del.-based provider of corporate, legal, tax and digital brand services. Intertrust is an Amsterdam-based provider of tech-enabled fund and corporate solutions.

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