Equinix breaks; Dexter Axle revises deal; Camping World, DTZ join this week’s calendar

By Sara Rosenberg

New York, Dec. 7 – Equinix Inc.’s U.S. term loan B made its way into the secondary market on Monday, with the debt bid above its original issue discount.

Meanwhile, in the primary market, Dexter Axle reworked its credit facility, downsizing its U.S. term loan B, and widening the spread and extending the call protection on the U.S. tranche as well as on a euro term loan B, and Camping World Inc. and DTZ emerged with new loan plans.

Equinix starts trading

Equinix’s $250 million seven-year covenant-light term loan B (Ba2/BBB-) freed up for trading on Monday at par bid, according to a trader.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75.

The company is also getting a £300 million seven-year covenant-light term loan B (Ba2/BBB-) priced at Libor plus 375 bps with a 0.75% Libor floor, and issued at a discount of 99.5.

Last week, the U.S. and sterling term loan tranche sizes were determined, versus launching as a $700 million equivalent loan with U.S. dollar and sterling sizes to be determined, the discount on the U.S. term loan was revised from talk of 99 to 99.5, and the discount on the sterling term loan firmed at the tight end of the 99 to 99.5 talk.

Equinix lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets and TD Securities (USA) LLC are leading Equinix’s term debt.

Proceeds from loans, the sale of common stock, $1.1 billion of bonds and cash on hand will be used to finance the purchase of TelecityGroup plc.

Closing on the acquisition is expected early in the first half of 2016.

Equinix is a Redwood City, Calif.-based interconnection and data center company. Telecity is a London-based carrier-neutral data center and colocation center provider.

Dexter changes surface

Moving to the primary market, Dexter Axle cut is U.S. seven-year covenant-light term loan B to $310 million from $420 million, raised pricing on the U.S. loan and on its €135 million seven-year covenant-light term loan B to Libor/Euribor plus 525 bps from talk of Libor/Euribor plus 450 bps to 475 bps, and pushed out the 101 soft call protection on the term debt to one year from six months, according to a market source.

As before, the term loans have a 1% floor and an original issue discount of 99.

The company’s credit facility still includes a $60 million five-year revolver.

Commitments to the reworked deal are due mid-next week, the source said.

BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are leading the debt.

Dexter funding acquisition

Proceeds from Dexter Axle’s credit facility will be used to help finance the purchase of AL-KO Vehicle Technology from AL-KO Kober SE. The combined company will be named DexKo Global Inc. and majority owned by funds managed by the Sterling Group, Dexter’s current majority owners.

To make up for the lost term loan funds, the company added a $65 million mezzanine tranche to its acquisition financing package and additional equity is being invested, the source remarked.

Closing is expected at year-end.

Net first-lien leverage is 3.2 times and net total leverage through the mezzanine is 3.7 times, the source added.

Dexter is an Elkhart, Ind.-based designer and manufacturer of trailer axles, brakes and related components. AL-KO is a manufacturer of chassis and running gear components.

Camping World on deck

Camping World scheduled a call for Tuesday to launch a $55 million add-on term loan talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 98.5, a market source remarked.

Goldman Sachs Bank USA is leading the deal that will be used to fund an acquisition.

In connection with the add-on, the company will increase pricing on its existing term loan to Libor plus 475 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor.

All of the term loan debt is getting 101 soft call protection for six months, the source added.

Camping World is a supplier of RV parts, supplies and accessories.

DTZ joins calendar

DTZ set a conference call for Tuesday to launch an add-on term loan that will be used for general corporate purposes, a market source said.

UBS AG is leading the deal.

The company’s existing term loan was quoted at 98 3/8 bid, 98 7/8 offered in trading on Monday, pretty much unchanged from levels prior to the add-on news, a trader added.

DTZ is a real estate services company.

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