Charter, AlixPartners, Kenan Advantage break; Hostess, Alliant Insurance revise deadlines

By Sara Rosenberg

New York, July 23 – Charter Communications Inc.’s term loans freed up for trading during Thursday’s market hours, with the loans quoted above their original issue discounts, and AlixPartners LLP and Kenan Advantage Group Inc. began trading too.

Switching to the primary market, Hostess Brands LLC and Alliant Insurance Services Inc. (Alliant Holdings I LP) accelerated the commitment deadlines on their credit facilities.

Also, Prolamina Corp./Ampac Holdings LLC (Intermediate Holdco (US)) came out with price talk with launch, and details on Water Pik Inc.’s add-on term loans surfaced.

Charter frees up

Charter Communications’ new term loan debt made its way into the secondary market on Thursday, with the $1 billion six-year term loan H quoted at par bid, par ¼ offered, and the $2.8 billion 7.5-year term loan I quoted at par ¼ bid, par ½ offered, according to a trader.

The term loan H is priced at Libor plus 250 basis points, and the term loan I is priced at Libor plus 275 bps, with both tranches having a 0.75% Libor floor and 101 soft call protection for six months. Both sold at an original issue discount of 99.75.

During syndication, the company revised its financing plans from an originally proposed $3.5 billion seven-year term loan H talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS AG and Deutsche Bank Securities Inc. are leading the term loans.

Charter funding acquisitions

Proceeds from Charter’s term loans will be used to help fund the purchases of Time Warner Cable Inc. and Bright House Networks.

Time Warner Cable is being acquired in a cash and stock deal valued at $78.7 billion, and Bright House Networks is being bought from Advance/Newhouse Partnership for $10.4 billion.

Closing on the transactions is expected to occur by the end of this year, subject to approval by both Charter and Time Warner Cable shareholders, regulatory review and other customary conditions.

The combination of Stamford, Conn.-based Charter with Time Warner Cable and Bright House will create a broadband services and technology company with 23.9 million customers in 41 states.

AlixPartners hits secondary

AlixPartners’ $1.1 billion seven-year covenant-light term loan B (B2/B+) broke as well, with levels quoted at par ¼ bid, par ¾ offered, and then it came in a little to par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at a discount of 99.75. There is 101 soft call protection for six months.

Recently, the spread on the loan was revised from Libor plus 375 bps, and the discount was changed from 99.5.

Deutsche Bank Securities, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS AG are leading the deal that will be used to refinance the company’s existing first- and second-lien term loans and fund a distribution to shareholders.

Closing is expected during the week of July 27.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Kenan tops OID

Kenan Advantage Group’s credit facility also freed up, with the $750 million term loan quoted at par bid, par 3/8 offered, according to a trader.

Pricing on the term loan, as well as on a $150 million delayed-draw term loan, is Libor plus 300 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

Recently, pricing on the term loan debt was reduced from Libor plus 350 bps.

The company’s $1,025,000,000 senior secured credit facility (Ba3/BB) also includes a $125 million revolver.

KeyBanc Capital Markets LLC and Goldman Sachs Bank USA are leading the deal.

Kenan buyout

Proceeds from Kenan’s credit facility and $405 million of bonds will be used to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.

Of the total delayed-draw term loan amount, some was sold as a strip with the funded term loan and some was held by relationship banks. The debt can only be used for permitted acquisitions.

Closing is expected in the third quarter.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services.

Hostess shutting early

Moving to the primary market, Hostess moved up the commitment deadline on its $1,325,000,000 credit facility to 5 p.m. ET on Monday from 5 p.m. ET on July 30, a market source said.

The facility consists of a $100 million revolver (B+), an $825 million seven-year first-lien covenant-light term loan (B+) and a $400 million eight-year second-lien covenant-light term loan (CCC+).

Talk on the first-lien term loan is Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan (CCC+) is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities, Deutsche Bank Securities, UBS AG, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Nomura are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

Alliant moves deadline

Alliant Insurance Services accelerated the commitment deadline on its $1.54 billion senior secured credit facility (B2/B) to 5 p.m. ET on Friday from Wednesday, according to a market source.

The facility consists of a $200 million five-year revolver talked at Libor plus 375 bps with leverage-based step-downs, and a $1.34 billion seven-year covenant-light term loan B talked at Libor plus 400 bps with a 1% Libor floor, a discount of 99 to 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding, UBS AG, Jefferies Finance, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will be used with bonds backed by a $495 million opco bridge loan and a $175 million holdco bridge loan to help fund the purchase of the company by Stone Point Capital LLC.

At closing, which is expected in early- to mid-August, funds managed by Stone Point will be Alliant’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Prolamina reveals guidance

Prolamina held its bank meeting on Thursday morning, and with the event price talk on its first- and second-lien term loans was announced, according to a market source.

The $400 million seven-year first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99, and the $110 million eight-year second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5 to 99, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $560 million credit facility also includes a $50 million five-year revolver.

Commitments are due on Aug. 6, the source added.

RBC Capital Markets is leading the deal that will fund the acquisition of Ampac by Wellspring Capital Management LLC and combination with Wellspring’s portfolio company Prolamina.

The combination will create a new flexible packaging company.

Water Pik details emerge

Water Pik held its call, launching a fungible $75 million add-on first-lien term loan and a fungible $35 million add-on second-lien term loan, a market source said.

Original issue discount talk on the add-on first-lien term loan is 99.5, and the add-on second-lien term loan is talked at a discount of 99.25, the source continued.

Pricing on the first-lien term loan debt is Libor plus 475 bps with a 1% Libor floor, and pricing on the second-lien debt is Libor plus 875 bps with a 1% Libor floor.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on July 30.

Water Pik recapitalization

GE Capital Markets is leading Water Pik’s $110 million in term loans that will be used for a dividend recapitalization.

First- and second-lien lenders are being asked to approve an amendment allowing for the proposed dividend, and are offered a 12.5-bps amendment fee, the source added.

Water Pik is a Fort Collins, Colo.-based marketer and supplier of branded oral health and replacement showerhead products.

Garda on deck

Garda World Security emerged with plans to hold a lender call on Monday to launch an add-on term loan, a market source remarked.

Jefferies Finance is leading the deal that will be used to fund an acquisition.

Garda is a Montreal-based provider of business solutions and security services.

Eldorado closes

In other news, Eldorado Resorts Inc. completed its $575 million credit facility (Ba3/BB-), according to an 8-K filed with the Securities and Exchange Commission.

The facility consists of a $150 million revolver and a $425 million term loan.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was cut from talk of Libor plus 375 bps to 400 bps.

J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. led the deal that helped fund the purchase of MGM Resorts International’s 50% interest in the Silver Legacy Resort Casino Reno (Eldorado already owns the other 50%) and the assets of Circus Circus Reno for total consideration of $72.5 million cash, to repay amounts outstanding under the Silver Legacy credit facility, which totaled about $60 million at March 31, and to redeem notes.

Eldorado Resorts is a Reno, Nev.-based casino entertainment company.

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