Allison, Suddenlink, Greatbatch, Cyxtera, DuBois, Cologix break; Foresight, Summit tweaked

By Sara Rosenberg

New York, March 15 – Allison Transmission Inc. firmed pricing on its term loan B at the low end of guidance, and Suddenlink Communications lowered the spread on its term loan B while widening the original issue discount, and then both deals freed up for trading on Wednesday.

Also, Greatbatch Ltd. (Integer Holdings Corp.) cut the size of its repriced term loan B with a voluntary prepayment and broke for trading, and deals from Cyxtera Technologies Inc. (Colorado Buyer Inc.), DuBois Chemicals and Cologix Holdings Inc. hit the secondary market as well.

In more happenings, Foresight Energy LLC set pricing on its first-lien term loan at the high end of talk and modified the issue price, Summit Midstream Partners Holdings LLC firmed the spread on its term loan B at the low end of guidance, and PPC Industries revised the bank meeting date for its credit facility as a result of the inclement weather in New York.

Furthermore, United Airlines Inc., Dole Food Co. Inc., Springer Science + Business Media (Springer Nature), Hargray Communications Group Inc., INAP (Internap Corp.) and American Teleconferencing Services Ltd. (Premiere Global Services) released talk with launch.

Additionally, Associated Asphalt Partners LLC came out with pricing guidance on its term loan ahead of its bank meeting, and Altice Financing, Las Vegas Sands LLC and Technicolor SA joined this week’s primary calendar.

Allison sets spread, trades

Allison Transmission finalized pricing on its $1,188,000,000 senior secured covenant-light term loan B due September 2022 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and left the 0% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

After terms firmed up, the loan made its way into the secondary market, and levels were seen at par 5/8 bid, 101 offered before moving up to par 7/8 bid, 101¼ offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on March 24.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Suddenlink updated, breaks

Suddenlink Communications trimmed the spread on its $1,265,000,000 eight-year senior secured term loan B (Ba3/BB-) to Libor plus 225 bps from talk of Libor plus 250 bps to 275 bps and widened the original issue discount to 99.5 from 99.75, a market source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, and the term loan freed to trade later in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B and repay some notes.

Suddenlink is a cable and broadband service provider.

Greatbatch downsizes, frees up

Greatbatch trimmed its term loan B due Oct. 27, 2022 to $954 million from $1,015,000,000 with a voluntary prepayment, a market source remarked.

The term loan is still priced at Libor plus 350 bps with a 1% Libor floor and a par issue price and has 101 soft call protection for six months.

By late afternoon, the term loan emerged in the secondary market, with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Greatbatch is a Plano, Texas-based medical device company.

Cyxtera hits secondary

Cyxtera’s credit facility also broke, with the $815 million seven-year covenant-light first-lien term loan (Ba3/B+) seen at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company is also getting a $310 million eight-year covenant-light second-lien term loan (B3/CCC+) priced at Libor plus 725 bps with a 1% Libor floor and issued at a discount of 99. This loan has hard call protection of 102 in year one and 101 in year two but is callable at 101 in the first year in the event the U.S. tax code eliminates tax deductibility of interest for federal income tax.

There is a ticking fee of 50% of the drawn spread from days 46 to 60 and the full spread plus the greater of Libor and the floor thereafter.

On Monday, pricing on the first-lien term loan was lowered from talk of Libor plus 350 bps to 375 bps and pricing on the second-lien term loan was trimmed from talk of Libor plus 750 bps to 775 bps.

Cyxtera getting revolver

In addition to the first- and second-lien term loans, Cyxtera’s $1,275,000,000 credit facility includes a $150 million five-year revolver (Ba3/B+).

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc. and Citizens are leading the deal, with Citi the left lead on the first-lien debt and JPMorgan the left lead on the second-lien debt.

Proceeds will be used to help fund the acquisition of 57 data centers from CenturyLink Inc. by a joint venture being formed by BC Partners and Medina Capital, along with Longview Asset Management, and the combination of the data centers with Medina Capital’s security and data analytics portfolio.

The CenturyLink data centers are being purchased for $2.15 billion in cash, subject to offsets for capital lease obligations and various working capital and other adjustments, and CenturyLink will receive a minority stake to be valued at $150 million in the consortium’s newly formed global secure infrastructure company.

Closing on the data centers acquisition is expected early in the second quarter, subject to regulatory approvals and other customary conditions.

DuBois tops OID

DuBois Chemicals’ credit facility began trading too, with the $300 million seven-year covenant-light first-lien term loan (B1/B-) quoted at par ½ bid, 101 offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps based on leverage and a 1% Libor floor, and it was sold at a discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk of Libor plus 400 bps to 425 bps and the step-down was added.

The company’s $555 million credit facility also provides for a $50 million six-year revolver (B1/B-), a $75 million seven-year delayed-draw first-lien term loan (B1/B-) that has a 1% undrawn fee and 12-month availability and a $130 million eight-year second-lien term loan (Caa1/CCC) priced at Libor plus 800 bps with a 1% Libor floor and sold at a discount of 99. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

Antares Capital, BMO Capital Markets, Deutsche Bank Securities Inc. and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by funds managed by the Jordan Co. LP.

DuBois is a Sharonville, Ohio-based provider of customized chemical solutions and services for mission critical business applications.

Cologix starts trading

Cologix Holdings’ credit facility broke as well, with the $300 million seven-year covenant-light first-lien term loan (B2/B+) and the $60 million 4.75-year delayed-draw for six months first-lien term loan (B2/B+) quoted at par bid, 101 offered, and the $135 million eight-year covenant-light second-lien term loan (Caa2/B-) quoted at 99¼ bid, par ¾ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The delayed-draw term loan is priced at Libor plus 300 bps with a 0% Libor floor, and it was sold at a discount of 99.5. This tranche has 101 soft call protection for six months and a ticking fee of the full spread.

Pricing on the second-lien term loan is Libor plus 700 bps with a 1% Libor floor, and it was issued at a discount of 99. The debt has hard call protection of 102 in year one and 101 in year two.

The company’s credit facility.

Cologix lead banks

Barclays, TD Securities (USA) LLC and Jefferies Finance LLC are leading Cologix’s $570 million senior secured credit facility, which also provides for a $75 million revolver (B2/B+).

During syndication, pricing on the first-lien and delayed-draw term loans was trimmed from talk of Libor plus 350 bps to 375 bps, and pricing on the second-lien term loan was cut from talk of Libor plus 750 bps to 775 bps.

Proceeds will be used to help fund the acquisition of Cologix by Stonepeak Infrastructure Partners. The existing Cologix investors, including Grant van Rooyen, the van Rooyen Group, company management, Columbia Capital and Greenspring Associates, will continue to hold a material interest in the company.

Closing is subject to regulatory approvals.

Cologix is a Denver-based data center and interconnection solutions provider.

Foresight reworked

Back in the primary market, Foresight Energy firmed pricing on its $750 million five-year first-lien term loan at Libor plus 575 bps, the high end of the Libor plus 550 bps to 575 bps talk, and widened the original issue discount to 98.5 from 99, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

The company’s $920 million senior secured first-lien credit facility (B2/B/B+) also includes a $170 million revolver.

Goldman Sachs Bank USA, Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used with $500 million in second-lien notes and about $78 million of cash on hand to refinance about $349 million in second-lien senior secured PIK notes due 2021, about $300 million in second-lien senior secured exchangeable PIK notes due 2017 and existing credit facilities, including the roughly $353 million outstanding under the revolver and the roughly $296 million term loan.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

Summit firms pricing

Summit Midstream set pricing on its $300 million first-lien term loan B (B3/B-) due May 2022 at Libor plus 600 bps, the low end of the Libor plus 600 bps to 625 bps talk, and kept the 1% Libor floor, original issue discount of 99 and call protection of 102 in year one and 101 in year two unchanged, a market source said.

Commitments are due at noon ET on Thursday, moved up from 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to refinance preferred debt and to fund a shareholder distribution.

Summit Midstream Partners is a The Woodlands, Texas-based owner and operator of midstream energy infrastructure assets.

PPC reschedules meeting

PPC Industries pushed off the New York bank meeting for its $517 million credit facility to March 22 from March 16 due to severe weather conditions, according to a market source.

The facility consists of a $40 million five-year revolver, a $360 million seven-year first-lien term loan and a $117 million eight-year second-lien term loan.

Antares Capital is leading the deal that will be used to help fund the acquisition of Pexco LLC.

PPC, a portfolio company of Kohlberg & Co., is a provider of highly engineered consumable specialty plastics to the medical, food and industrial markets. Pexco is a custom plastic extruder serving the medical and specialty industrial end markets. The combined entity will be based in Alpharetta, Ga.

United Airlines sets talk

United Airlines released talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $1.5 billion seven-year term loan B that launched with a lender call on Wednesday, a market source said.

The company’s $3.5 billion credit facility (Baa3/BB+) also include a $2 billion five-year revolver.

Commitments are due at 1 p.m. ET on March 23, the source added.

Barclays and J.P. Morgan Securities LLC are the bookrunners on the deal, with Barclays the left lead and JPMorgan the agent.

The credit facility will be used to refinance the company’s revolvers due 2018 and 2019, term loan B due 2019 and term loan B-1 due 2021 and for general corporate purposes.

United Airlines is a Chicago-based airline operator.

Dole releases terms

Dole Food held its lenders’ presentation in the afternoon, launching an $875 million seven-year term loan B (B1/B-) at talk of Libor plus 325 bps to 350 bps with a 25 bps step-down at 3.75 times first-lien net leverage, a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 24, the source said.

Morgan Stanley Senior Funding, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Bank of Nova Scotia are leading the deal that will be used to refinance an existing term loan B, existing secured notes and ABL borrowings.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

Springer details emerge

Springer Science + Business Media launched on its lender call a $1,432,000,000 term loan B-12 due August 2022 talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.875, a market source said.

The company also launched a €1,643,000,000 term loan B-11 due August 2022 talked at Euribor plus 325 bps to 350 bps with a 0.5% floor and a discount of 99.875 to par, and an up to €250 million revolver due February 2022 talked at Libor/Euribor plus 325 bps.

The term loans have 101 soft call protection for six months.

Commitments are due at noon ET on March 24, the source added.

Nomura is leading the deal that will be used to extend the existing U.S. term loan B-9 due August 2020 currently priced at Libor plus 350 bps with a 1% Libor floor into the new B-12 tranche, reprice from Euribor plus 350 bps with a 1% floor and extend from August 2020 the euro term loan B-8 and euro term loan B-10 into the new B-11 tranche, and extend the existing revolver due February 2020 currently priced at Libor/Euribor plus 325 bps.

Springer is a Germany-based STM publisher that provides scientific, professional and academic media content.

Hargray reveals guidance

Hargray Communications held its lender call, launching its $450 million seven-year covenant-light term loan B at talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $480 million credit facility (B2) also includes a $30 million revolver.

Commitments are due at 5 p.m. ET on March 24.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Antares Holdings are leading the deal that will be used to finance the acquisition of the company by Tom Pritzker Family Business Interests, Redwood Capital Investments, Stephens Capital Partners and management.

Closing is expected in the third quarter.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

INAP holds meeting

INAP had its bank meeting in the afternoon, and with the event, talk on its its $300 million first-lien term loan was announced at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, a market source remarked.

The company’s $320 million credit facility also includes a $20 million revolver.

Commitments are due on March 29, the source added.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

INAP is an Atlanta-based provider of IT Infrastructure solutions.

American Teleconferencing launches

American Teleconferencing Services came out with original issue discount talk of 98 on its $140 million add-on first-lien term loan (B) due December 2021 that launched with a lender call in the morning, a source said.

The add-on first-lien term loan is priced at Libor plus 650 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the debt will get 101 soft call protection for six months.

Commitments are due at noon ET on March 22.

The company is also getting a $70 million add-on second-lien term loan due June 2022 priced at Libor plus 950 bps with a 1% Libor floor, in line existing second-lien pricing. This tranche has call protection of 102, stepping down to 101 in November.

Deutsche Bank Securities Inc., Barclays, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are the bookrunners on the first-lien loan, and Eaglehill is the lead arranger on the second-lien loan.

Proceeds will repay an outstanding revolver draw and seller note and fund a dividend to shareholders.

American Teleconferencing is an Atlanta-based provider of audio conferencing, web and video collaboration solutions for businesses.

Associated Asphalt floats talk

Associated Asphalt disclosed price talk of Libor plus 550 bps to 575 bps with a 1% Libor floor and an original issue discount of 98.5 on its $325 million seven-year first-lien term loan B (B3) that is scheduled to launch with a bank meeting at 10:30 a.m. ET in New York on Thursday, according to a market source.

The term loan B has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 30.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc. and Capital One are leading the deal that will be used to refinance existing debt.

Associated Asphalt is a Roanoke, Va.-based operator of an asphalt terminalling, storage and distribution network.

Altice joins calendar

In more primary news, Altice Financing emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $425 million term loan B due 2025 and a €446 million term loan B due 2025, a market source said.

Talk on the U.S. term loan B is Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99.75, and talk on the euro term loan B is Euribor plus 300 bps to 325 bps with a 0% floor and a par issue price, with both tranches having 101 soft call protection for six months, the source continued.

Commitments are due on Tuesday.

Credit Suisse, BNP Paribas, Deutsche Bank and J.P. Morgan are the global coordinators on the deal, with Credit Suisse the lead on the U.S. loan, and BNP and Deutsche the co-leads on the euro loan.

Proceeds will be used to refinance $425 million of senior notes due 2020 and a €446 million term loan B.

Altice is a Luxembourg-based cable and telecom company.

Las Vegas Sands on deck

Las Vegas Sands scheduled a lender call for noon ET on Thursday to launch a refinancing of its $2.17 billion term loan B, according to a market source.

Bank of Nova Scotia is leading the deal.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Technicolor readies deal

Technicolor set a lender call for 11:30 a.m. ET on Thursday to launch a €560 million-equivalent U.S. and euro senior secured term loan B, a market source remarked.

Goldman Sachs International, Morgan Stanley Senior Funding Inc. and Natixis are leading the deal that will be used to refinance existing term loan debt due in 2020.

Technicolor is a France-based technology company focused on the media and entertainment sector.

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