Segra breaks for trading; Chefs’ Warehouse, Douglas Dynamics ready loan transactions

By Sara Rosenberg

New York, May 27 – Segra (MTN Infrastructure TopCo Inc.) set the original issue discount on its term loan at the tight end of guidance and then freed to trade on Wednesday afternoon.

In more happenings, Chefs’ Warehouse Inc. and Douglas Dynamics Inc. joined this week’s loan calendar.

Segra updated, frees up

Segra firmed the original issue discount on its $275 million term loan (B) at 96, the tight end of revised talk of 95.5 to 96 and tighter than initial talk in the range of 94 to 95, according to a market source.

As before, pricing on the term loan is Libor plus 400 basis points with a 1% Libor floor and the debt has 101 soft call protection for six months.

The term loan made its way into the secondary market in the afternoon, with levels quoted at 96½ bid, 97¼ offered on the break, another source remarked. Shortly thereafter, the loan traded up to 96¾ bid, 97¾ offered.

TD Securities (USA) LLC and CoBank are leading the deal that will primarily be used to support the recently completed acquisition of NorthState, a provider of high-speed bandwidth services in the Piedmont Triad region of North Carolina, for $80.00 in cash per share.

Segra is a fiber infrastructure bandwidth company.

Chefs’ Warehouse on deck

Chefs’ Warehouse set a lender call for 10 a.m. ET on Thursday to launch a three-year extension of its first-lien term loan to June 22, 2025 from June 22, 2022, a market source said.

Price talk on the extended term loan is Libor plus 550 bps with a 0% Libor floor, and any non-extended amount of the term loan will continue to be priced at Libor plus 350 bps with a 0% Libor floor, the source continued. Call protection on the term loan debt will be the same as the existing call protection.

The size of the extended term loan and non-extended term loan are still to be determined.

With the extension, the company will pay a 50 bps amendment fee to consenting lenders, pay down 15% of the outstanding principal amount of the first-lien term loan, payable to extending lenders only, and add a minimum liquidity covenant subject to no less than $35 million of aggregate cash and ABL availability.

Jefferies LLC is leading the deal.

Consents are due at noon ET on June 4.

The amendment has a minimum 85% consent threshold, the source added.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Douglas coming soon

Douglas Dynamics will hold a lender call on Thursday to launch a $250 million term loan (B2), according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan and repay some asset-based revolver borrowings.

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment.

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