Chief Power, Eyemart, Capella break; Astoria Energy, TASC, Caraustar, Liberty rework deals

By Sara Rosenberg

New York, Dec. 16 – Chief Power Finance LLC upsized its term loan B, set pricing at the high end of talk and then emerged in the secondary market during Tuesday’s session, and Eyemart Express LLC and Capella Healthcare Inc. began trading, too.

In more happenings, Astoria Energy LLC increased pricing on its term loan B, and TASC Inc. widened the spread and discount on its incremental first-lien term loan and adjusted the ticking fee.

Also, Caraustar Industries Inc. lifted pricing on its add-on term loan, modified the offer price and sweetened the call protection, and Liberty Cablevision of Puerto Rico LLC revised the original issue discount on its tack-on first-lien term loan and firmed the issue price on its tack-on second-lien term loan at the tight end of guidance.

Chief Power revised, trades

Chief Power Finance lifted its six-year term loan B to $351 million from $325 million and firmed pricing at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, according to a market source, who said the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year were unchanged.

The company’s now $391 million senior secured credit facility also includes a $40 million five-year revolver.

With final terms in place, the deal began trading, with the term loan B quoted at 99 bid, 99½ offered, a trader remarked.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to fund Arclight Capital’s acquisition of Exelon Corp.’s interests in two fossil fuel power plants.

Closing is expected on Dec. 31, the source added.

Eyemart tops OID

Eyemart Express’ credit facility broke for trading as well, with the $300 million seven-year covenant-light term loan B seen at 99 5/8 bid, par 1/8 offered, a trader remarked.

Pricing on the B loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

During syndication, the spread on the term loan B was reduced from Libor plus 425 bps and the discount was tightened from 99.

The company’s $330 million credit facility (B1/B) also includes a $30 million five-year revolver.

Wells Fargo Securities LLC is leading the deal that will be used with around $390 million in equity to fund the buyout of the company by Friedman Fleischer & Lowe LLC.

Eyemart is a Texas-based eyewear company.

Capella starts trading

Capella Healthcare’s $100 million seven-year first-lien covenant-light term loan (Ba2/BB-) freed up too, with levels quoted at 99 bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Recently, the spread on the loan was reduced from Libor plus 450 bps and the MFN sunset provision was eliminated.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will fund the acquisition of Carolina Pines Regional Medical Center and its related outpatient services from Community Health Systems Inc.

The transaction is subject to customary regulatory approvals.

Capella is a Franklin, Tenn.-based developer and operator of health care facilities. The Carolina Pines Regional Medical Center is an acute care hospital and an adjoining medical office building in Hartsville, S.C.

Astoria Energy flexes

Back in the primary, Astoria Energy LLC changed pricing on its $775 million seven-year term loan B (BB) to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, a market source remarked.

The company’s $845 million senior secured credit facility also includes a $70 million five-year revolver.

Recommitments were due at 3 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. and Natixis Securities Americas LLC are leading the deal that will be used to repay existing debt and make a one-time distribution to the sponsors.

Astoria Energy is an owner of operating electric power generation facilities in New York.

TASC reworks first-lien

TASC increased pricing on its $435 million incremental first-lien term loan (Ba3/B+) due May 23, 2020 to Libor plus 600 bps from Libor plus 575 bps, changed the original issue discount to 96 from 97, and modified the ticking fee to the full spread plus the floor from day 31 and thereafter from half the spread plus a 1% floor from days 31 to 60 and the full spread plus the floor thereafter, according to a market source.

The incremental first-lien loan still has a 1% Libor floor.

In connection with the incremental loan, pricing on the company’s existing first-lien term loan will be lifted to Libor plus 600 bps with a 1% Libor floor from Libor plus 550 bps with a 1% Libor floor.

Call protection on the incremental and existing first-lien debt is unchanged at non-callable until May 23, 2015 and then at 101 for one year.

TASC second-lien terms

Along with the incremental first-lien loan, TASC is getting a $150 million incremental second-lien term loan (Caa1/CCC+) due May 23, 2021 that is priced at a fixed rate of 12%, in line with the existing second-lien term loan, and has an original issue discount of 98, unchanged from launch.

The second-lien debt is non-callable until May 23, 2015 and then at 105 for a year and at 102.5 for the following year.

The incremental second-lien term loan still has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The company’s $645 million in incremental bank debt also includes a $60 million incremental revolver (Ba3/B+) due May 23, 2019.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

TASC being purchased

Proceeds from TASC’s incremental loans will be used to repay existing debt at Engility Holdings Inc. and to fund a cash dividend to Engility shareholders in conjunction with Engility’s acquisition of TASC.

TASC is being bought from Kohlberg Kravis Roberts & Co. LP and General Atlantic LLC in an all-stock transaction valued at about $1.1 billion, including the assumption of about $613 million of net debt.

Barclays and Jefferies Finance LLC are leading the loans, with Barclays the left lead on the first-lien and Jefferies the left lead on the second-lien.

Net first-lien leverage is 2.9 times and net total leverage is 4.4 times.

Closing is expected in the first quarter of 2015, subject to approval of stockholders of both Engility and TASC, financing, regulatory approvals and other customary conditions.

TASC is a Chantilly, Va.-based professional services provider to the national security and public safety markets. Engility is a Chantilly, Va.-based pure-play government services contractor.

Caraustar changes emerge

Caraustar Industries raised pricing on its fungible $395 million add-on first-lien covenant-light term loan (B+) due May 1, 2019 to Libor plus 675 bps from Libor plus 625 bps, moved the original issue discount to 98 from talk of 98½ to 99, revised the soft call protection to 102 in year one and 101 in year two from 101 for one year and increased the excess cash flow sweep to 75% from 50%, a market source said.

As before, the add-on term loan has a 1.25% Libor floor and a ticking fee of the full spread from day 31 and thereafter.

Also, the company is now lifting pricing on its existing first-lien term loan to Libor plus 675 bps with a 1.25% Libor floor from Libor plus 625 bps with a 1.25% Libor floor, and the existing loan is getting the soft call protection of 102 for one year and 101 for a second year as well, the source continued.

The company’s $495 million of new bank debt also includes a $100 million ABL revolver.

Caraustar funding acquisition

Proceeds from Caraustar’s bank debt will be used to finance the purchase of the Newark Group Inc., which is subject to customary closing conditions and required regulatory approvals.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal.

Recommitments for the new debt were due at 5 p.m. ET on Tuesday, the source added.

As part of this transaction, the company is seeking an amendment to its existing credit facility to allow for the add-on loan, for which lenders are being offered a 100 bps consent fee.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products. Newark is a Cranford, N.J.-based manufacturer of recycled paperboard, linerboard, industrial tubes, cores and other converted products, including book covers and packaging services.

Liberty Cablevision tweaked

Liberty Cablevision of Puerto Rico changed the original issue discount on its $225 million tack-on first-lien term loan due Jan. 7, 2022 to 97 from talk of 98½ to 99, according to a market source. The tack-on is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing first-lien term loan, and has 101 soft call protection for six months.

As for the $32.5 million tack-on second-lien term loan due Jan. 7, 2023, the issue price finalized at par, the tight end of the 99½ to par talk, the source remarked. Pricing on the tack-on second-lien term loan is Libor plus 675 bps with a 1% Libor floor, in line with the existing second-lien term loan, and the debt has hard call protection of 102 through July 2015 and 101 for a year thereafter.

The tack-on loans still have a ticking fee of the full spread after 30 days.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Liberty Cablevision leads

Credit Suisse Securities (USA) LLC and Scotia Bank are leading Liberty Cablevision’s term loans, with Scotia the administrative agent.

Proceeds from the $257.5 million of tack-on term loans will be used to fund the acquisition of Choice Cable TV, a cable and broadband services provider in Puerto Rico, by Liberty Global plc and Searchlight Capital Partners LP and combination with Liberty Cablevision of Puerto Rico. The combined business will be 60%-owned by Liberty Global and 40%-owned by Searchlight.

The acquisition values Choice at an enterprise value, before transaction costs, of about $272.5 million.

Closing is expected in the first half of 2015, subject to customary conditions, including regulatory approvals.

Liberty Cablevision of Puerto Rico is a cable TV service provider in Puerto Rico.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.