Ziply updates deal, frees to trade; Xplornet Communications, Ventia set price talk

By Sara Rosenberg

New York, May 21 – Ziply Fiber (Northwest Fiber) modified the original issue discount on its term loan B and then the debt made its way into the secondary market on Thursday.

Additionally, Xplornet Communications Inc. and Ventia Finco Pty Ltd. released price guidance on their term loans in connection with their lender calls.

Ziply tweaked, breaks

Ziply Fiber changed the original issue discount on its $790.5 million seven-year term loan B (B2/B) to 96.25 from 95, a market source remarked.

As before, the term loan is priced at Libor plus 550 basis points with a 0% Libor floor and has 101 soft call protection for one year.

The term loan freed to trade later in the day, with levels quoted at 96¾ bid, 97¾ offered, another source added.

BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the recently completed $1,352,000,000 acquisition of Frontier Communications Corp.’s operations and associated assets in Washington, Oregon, Idaho and Montana by WaveDivision Capital LLC, Searchlight Capital Partners LLC, PSP Investments, British Columbia Investment Management Corp. and Canada Pension Plan Investment Board.

The company is also getting $250 million of notes for the transaction.

Ziply Fiber is a Kirkland, Wash.-based broadband provider.

Xplornet proposed terms

Xplornet held its call on Thursday and announced price talk on its C$1.275 billion U.S. dollar equivalent seven-year covenant-lite first-lien term loan (B3/B-) at Libor plus 475 bps with a 0% Libor floor and an original issue discount of 95, according to a market source.

The term loan has 101 soft call protection for one year.

The company is also getting a C$150 million revolver.

Commitments are due at 5 p.m. ET on May 28.

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets and Natixis are leading the deal that will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners. Current chairman of the board Steve Weed and his fund WaveDivision Capital will remain material investors in the business.

Closing is subject to regulatory approval.

Xplornet is a Woodstock, New Brunswick-based broadband service provider in Canada.

Ventia holds call

Ventia hosted a call during the session to launch a fungible roughly A$525 million equivalent incremental senior secured term loan due May 21, 2026 available in U.S. and Australian dollars, a market source said.

Talk on the incremental U.S. term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor and talk on the incremental Australian term loan is BBSY plus 550 bps to 575 bps with a 0% floor. Both tranches are talked with an original issue discount in the 97 area and have 101 soft call protection for one year, the source continued.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and UBS Investment Bank are leading the deal that will be used to fund the A$485 million acquisition of Broadspectrum, an Australian company that provides infrastructure maintenance services.

With this transaction, pricing on the company’s existing A$410 million senior secured term loan and existing $392 million senior secured term loan will be increased to match pricing on the incremental term debt.

Lenders are being offered a 25 bps amendment consent fee, the source added.

Ventia is a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors. The company was formed by a 50/50 investment partnership between funds managed by affiliates of Apollo Global Management and the Cimic Group.

Learning Care prices

In other news, Learning Care Group Inc. wrapped syndication of its $190 million non-fungible incremental covenant-lite term loan B due March 13, 2025 at pricing of Libor plus 850 bps with a 1% Libor floor and an original issue discount of 97, according to a market source. The debt is non-callable for one year, then has a 101 hard call in year two.

Morgan Stanley Senior Funding Inc., BofA Securities, Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BMO Capital Markets, Fifth Third and ING are leading the deal that will be used to repay revolver borrowings, fund cash on the balance sheet, and pay related fees and expenses.

Closing is expected on Tuesday.

Learning Care Group is a Novi, Mich.-based provider of early education and childcare services.

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