Atlas Energy trims term loan pricing, Arctic Glacier sets OID talk; Keystone readies deal

By Sara Rosenberg

New York, July 19 - In the primary market on Friday, Atlas Energy LP lowered the coupon on its term loan B that was well received by lenders, Arctic Glacier LLC released original issue discount talk on its add-on term loan with the launch, and Keystone Automotive Operations Inc. surfaced with plans to bring a new deal to market.

Atlas flexes lower

Atlas Energy cut pricing on its $240 million six-year term loan B (B3/B) on Friday to Libor plus 550 basis points from talk of Libor plus 600 bps to 625 bps, while keeping the 1% Libor floor, original issue discount of 99 and hard call protection of 102 in year one and 101 in year two intact, according to a market source.

Recommitments were due in the afternoon and allocations are expected during the week of July 22, the source said.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the transaction.

Proceeds help fund the $800 million acquisition of natural gas proved reserves in the Raton, N.M., Black Warrior, Ala., and Arkoma Basin, Okla., basins from EP Energy E&P Co. LP.

Closing is expected in the third quarter, subject to purchase price adjustments.

Atlas Energy is a Pittsburgh-based master limited partnership that owns an interest in producing natural gas and oil wells.

Arctic Glacier OID emerges

Arctic Glacier held its call at 11 a.m. ET on Friday to launch a $20 million add-on first-lien covenant-light term loan due May 2019, and shortly ahead of the call, original issue discount talk on the loan came out at 991/2, according to a market source.

As previously reported the add-on is priced at Libor plus 475 bps with a 1.25% Libor floor and has 101 repricing protection through November 2013.

The add-on is fungible with the existing $260 million term loan that has the same spread, floor and call premium.

Commitments are due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC is leading the deal, which will be used to repay revolver debt and for general corporate purposes.

Arctic Glacier is a Winnipeg-based manufacturer and distributor of packaged ice.

Keystone on deck

Also on the new deal front, Keystone Automotive revealed plans to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a $235 million six-year first-lien term loan and a $100 million seven-year second-lien term loan, according to a market source.

The company is also getting a $25 million ABL revolver that is not being syndicated, the source said.

UBS Securities LLC, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the $360 million deal that will be used to repay existing debt and fund a dividend to shareholders.

Keystone is an Exeter, Pa.-based distributor and marketer of aftermarket automotive equipment and accessories.

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