Crown Castle, Summit Materials trim pricing; Kaleb Deutschland seeks maturity extensions

By Paul A. Harris

Portland, Ore., Jan. 23 - Crown Castle Operating Co. and Summit Materials LLC trimmed the Libor spreads to their term loans currently undergoing syndication.

At the same time, Kabel Deutschland Holding AG is attempting to extend the maturities of three term loan tranches to 2017 from 2014.

The LCDX 17 bank loan index closed a quarter-point lower on Monday at 96¾ bid, 97¼ offered, according to a buyside source.

Crown Castle shaves spread

Crown Castle Operating shaved 25 basis points from the Libor spread on its $1.6 billion seven-year term loan B on Monday, reducing the spread to 300 bps from 325 bps.

The term loan features a 1% Libor floor and is talked at an original issue discount of 99. There is 101 soft call protection for one year on the term loan B, which remained unchanged from prior talk.

Recommitments were due by the Monday close.

The overall $3.1 billion senior secured credit facility (Ba3/B+/BB+) also features $1 billion five-year revolver and $500 million five-year delayed-draw term loan A that can be drawn on or before April 1, both talked at Libor plus 250 basis points, the source said.

Upfront fees on the revolver and term loan A are 25 bps for a $25 million commitment and 37.5 bps for more than $25 million. The term loan A also has a 50 bps delayed-draw fee.

Bank of America Merrill Lynch is the left lead on the term loan B, and RBS Securities Inc. is the left lead on the revolver and term loan A. Morgan Stanley & Co. LLC is a joint lead arranger and bookrunner on the deal as well.

Proceeds will be used to refinance the company's existing revolver, under which $251 million is drawn, and $619 million term loan and to fund the roughly $1 billion acquisition of NextG Networks Inc.

Remaining proceeds will be available for general corporate purposes, including acquisitions and purchases of shares of common stock.

Summit trims 25 bps

Summit Materials also reduced the Libor spread on its $400 million seven-year term loan B by 25 bps, to 475 basis points from 500 bps.

The remainder of the loan's terms remains unchanged. It features a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $550 million credit facility (B1) also provides for a $150 million five-year revolver.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Kabel seeks extensions

On the heels of syndicating its $750 million term loan F last Friday, Kabel Deutschland is attempting to extend the maturities of three term loan tranches to 2017 from 2014.

A conference call is set for Tuesday.

The deal would roll lenders in the company's term loan A-1, A-2 and C-1 tranches into a new Euribor plus 350 basis points term loan G tranche.

The Euribor spread steps down to 325 bps if leverage falls below 2 times.

The deal comes with a 15 bps consent fee.

Last Friday, Kabel Deutschland's upsized $750 million seven-year senior secured term loan F (NA/NA/BB+) allocated and began trading.

Pricing on the term loan F is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 981/2. There is 101 soft call protection for one year.

Goldman Sachs & Co., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and RBS Securities Inc. are the mandated lead arrangers on the deal, which was upsized from $500 million.

Cardone Industries pulls deal

Cardone Industries postponed its $300 million credit facility in conjunction with the termination of the LBO of the company by TPG Capital, LP.

RBC Capital Markets LLC, BMO Capital Markets Corp. and Mizuho Securities USA Inc. are the lead banks on the deal, which included a $50 million revolver and a $250 million term loan.

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