Cincinnati frees up; Wastequip, Qdoba revised; KBR, Altisource, Freedom, LifeMiles set talk

By Sara Rosenberg

New York, March 14 – Cincinnati Bell Inc.’s term loan B surfaced in the secondary market during Wednesday’s trading session and the debt was seen quoted above its issue price.

Meanwhile, in the primary market, Wastequip LLC moved some funds between its first- and second-lien term loans and updated pricing, and Qdoba Restaurant Corp. (Quidditch Acquisition Inc.) raised the spread on its term loan B, widened the original issue discount and sweetened the call protection.

Also, KBR Inc., Altisource Holdings Sarl, Freedom Mortgage Corp. and LifeMiles Ltd. came out with price talk with launch, and Camping World emerged with new deal plans.

Cincinnati Bell breaks

Cincinnati Bell’s $600 million senior secured covenant-light term loan B (Ba3/BB-) due Oct. 2, 2024 began trading on Wednesday, with levels quoted at par 5/8 bid, 101 1/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 325 basis points with a 1% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., CoBank, PNC Capital Markets LLC, Regions Capital Markets, Citizens Capital Markets, Barclays, Citigroup Global Markets Inc. and MUFG are leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.

Closing is expected on April 5.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions.

Wastequip modified

Moving to the primary market, Wastequip lifted its first-lien term loan due 2025 to $265 million from $245 million and trimmed pricing to Libor plus 350 bps from Libor plus 375 bps, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

Furthermore, the company scaled back its second-lien term loan due 2026 to $80 million from $100 million and widened the discount to 98 from 99, the source said. This tranche is still priced at Libor plus 775 bps with a 1% Libor floor and has hard call protection of 102 in year one and 101 in year two.

The company’s $395 million of credit facilities also include a $50 million revolver due 2023.

Recommitments are due at noon ET on Thursday, the source added.

Barclays, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

Wastequip is a Charlotte, N.C.-based manufacturer of waste and recycling equipment.

Qdoba reworks loan

Qdoba Restaurant lifted pricing on its $203 million seven-year covenant-light term loan B (B) to Libor plus 700 bps from Libor plus 650 bps, moved the original issue discount to 98 from 98.5, and changed the call protection to non-callable for two years, then at 102 in year three and 101 in year four, from non-callable for one year, then at 102 in year two and 101 in year three, according to a market source.

Additionally, the incremental allowance was revised to $35 million free and clear, from $50 million free and clear plus a corresponding multiple of EBITDA, with a first-lien accordion unlimited ratio of 0.25 times inside closing net first-lien leverage, from 0.25 times above closing net first-lien leverage, and a total secured accordion unlimited ratio of 0.25 times above closing net secured leverage, from 0.75 times, the source said.

The term loan still has a 1% Libor floor.

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

Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC from Jack in the Box Inc. for about $305 million in cash, subject to customary closing conditions and adjustments.

Qdoba is a Mexican fast-casual restaurant chain.

KBR discloses guidance

Also in the primary market, KBR held its bank meeting on Wednesday and launched its $800 million seven-year covenant-light term loan B at talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 28, the source added.

The company’s $2.2 billion of senior secured credit facilities also include a $400 million five-year delayed-draw term loan A, a $500 million five-year revolver and a $500 million five-year performance letter-of-credit facility.

Bank of America Merrill Lynch is the left lead on the deal that will be used to finance the $355 million acquisition of SGT from Kamco Holdings, to refinance existing revolver borrowings, to fund KBR’s share in a joint venture and for general corporate purposes.

KBR is a Houston-based provider of full life-cycle professional services and technologies supporting the government services and hydrocarbons markets.

Altisource launches

Altisource disclosed talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $414 million senior secured covenant-light term loan B due March 31, 2024 that launched with a lender presentation in the morning, a market source said.

The company’s $429 million of senior secured credit facilities (B3/B+) also include a $15 million five-year revolver talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, the source added.

Commitments are due on March 28.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B.

Total leverage is 3.3 times and net leverage is 2.1 times.

Altisource is a Luxembourg-based service provider and marketplace for the real estate and mortgage industries.

Freedom reveals talk

Freedom Mortgage launched with its afternoon call its $688.4 million senior secured term loan due Feb. 23, 2022 at talk of Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 21.

Barclays and JP Morgan Chase Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

As part of the transaction, the company is asking to remove a corporate debt to tangible equity financial maintenance covenant from its credit agreement, the source added.

Freedom Mortgage is a Mount Laurel, N.J.-based top tier residential mortgage company engaged in the origination, servicing, selling and securitizing of primarily agency-eligible residential mortgage loans.

LifeMiles details surface

LifeMiles held its lender call in the morning, launching a $65 million add-on term loan B (Ba2) due August 2022 talked with an issue price of 101, according to a market source.

Pricing on the add-on loan is Libor plus 550 bps with a 1% Libor floor, and the debt has hard call protection of 102 through August 2018 and 101 through August 2019, which is all in line with existing term loan B terms.

Commitments are due on March 21, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund a distribution to shareholders and related fees and expenses alongside an amendment to the credit agreement.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Camping World on deck

Camping World set a lender call for 11 a.m. ET on Thursday to launch a fungible $250 million add-on senior secured term loan and a repricing of its existing $937 million senior secured term loan B, a market source said.

Goldman Sachs Bank USA is leading the deal.

The add-on loan will be used to fund future acquisitions of RV dealerships and expand Retail platform.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

Las Vegas sets deadline

In other news, Las Vegas Sands LLC came out with a commitment deadline of 5 p.m. ET on March 21 for its $2,183,000,000 term loan B due March 2024 that launched with an afternoon call, a market source remarked.

As previously reported, the term loan is talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months.

Bank of Nova Scotia, Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third Bank and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. Scotia is the administrative agent.

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

Swissport call protection

Swissport Group revealed ahead of its lender call on Thursday that its €325 million incremental term loan B (B-) due 2022 includes 101 soft call protection for six months and a 0% floor, and that commitments for the debt will be due at noon GMT on March 27, sources said.

Barclays is leading the deal.

Proceeds will be used to help fund the acquisition of Aerocare, a ground handling operator in Australia and New Zealand.

Pro forma for the acquisition, secured and total net leverage are 3.9 times and 4.9 times respectively.

Swissport is a Zurich-based provider of best-in-class airport ground services.

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