Waste Industries, BATS break; National Mentor accelerates deadline; DBRS cuts loan size

By Sara Rosenberg

New York, Feb. 20 – Waste Industries USA Inc.’s term loan B freed up for trading during Friday’s market hours with levels quoted above its original issue discount, and BATS Global Markets Inc. hit the secondary as well.

Over in the primary, National Mentor Holdings Inc. (Civitas Solutions Inc.) moved up the commitment deadline on its incremental term loan B, DBRS downsized its term loan, and Energy Transfer Equity LP and Tank Holding Corp. emerged with new loan plans.

Waste Industries tops OID

Waste Industries’ $700 million five-year covenant-light term loan B (B1/BB-) began trading on Friday with levels seen at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 99¾. There is 101 soft call protection for one year.

Recently, pricing on the term loan was reduced from talk of Libor plus 350 bps to 375 bps, the discount tightened from 99 and the call protection was extended from six months.

Bank of America Merrill Lynch, Macquarie Capital (USA) Inc., Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing credit facilities, repay industrial revenue bonds, redeem class A equity units and pay a distribution to class B shareholders.

Waste Industries is a Raleigh, N.C.-based solid waste management company.

BATS frees up

BATS Global Markets’ new debt broke too, with the $150 million three-year term loan quoted at 99 3/8 bid, 99 7/8 offered, a trader said.

Pricing on the term loan is Libor plus 375 basis points with no Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company is also getting a fungible $228 million add-on term loan priced at Libor plus 475 bps with a 1% Libor floor and sold at a discount of 99. This tranche has 101 soft call protection for one year as well.

During syndication, the three-year term loan was downsized from $250 million and the discount widened from 99½, and the add-on term loan was upsized from $128 million.

J.P. Morgan Securities LLC is leading the $378 million of term debt (BB-) that will be used to fund the $365 million acquisition of Hotspot FX from KCG Holdings, which is expected to close in the first half of this year.

BATS is a Kansas City, Mo.-based operator of securities markets. Hotspot is a Jersey City, N.J.-based institutional spot foreign exchange market,

National Mentor shutting early

Moving to the primary market, National Mentor accelerated the commitment deadline on its fungible $55 million incremental term loan B due Jan. 31, 2021 to noon ET on Monday from 5 p.m. ET on Tuesday, a market source said.

Pricing on the incremental loan is Libor plus 325 basis points with a 1% Libor floor, in line with the company’s existing $595.5 million term loan B due Jan. 31, 2021, and it is being offered at an original issue discount in the 98¾ area.

With this transaction, the incremental and the existing term loan will get 101 soft call protection for six months.

Barclays, Bank of America Merrill Lynch and UBS AG are leading the deal that will be used to redeem 12½% senior notes.

National Mentor is a Boston-based provider of home and community-based health and human services.

DBRS tweaks size

DBRS trimmed its seven-year first-lien covenant-light term loan to $225 million from $250 million due to the U.S./Canadian dollar exchange rate moving in issuer’s favor, and kept pricing at Libor plus 525 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s now $275 million credit facility also includes a $50 million five-year revolver.

Credit Suisse Securities (USA) LLC, UBS AG and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the Toronto-based credit rating agency by The Carlyle Group and Warburg Pincus.

Closing is expected this quarter.

Energy Transfer readies loan

Energy Transfer Equity set a lender call for 11:30 a.m. ET on Monday to launch a $500 million first-lien term loan (Ba2/NA/BB+) due Dec. 2, 2019, according to a market source, who said price talk is not yet available.

Commitments are due on March 2, the source added.

Credit Suisse Securities (USA) LLC, Bank of Tokyo-Mitsubishi, BBVA Compass, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., DNB Bank, Mizuho Securities USA Inc., Sumitomo Mitsui Banking Corp., Intesa Sanpaolo, Natixis Securities North America Inc., ING Capital LLC, ABN Amro Inc., SunTrust Robinson Humphrey Inc., PNC Capital Markets LLC and HSBC Securities (USA) Inc. are leading the deal.

Proceeds will be used to help fund the transfer of 30.8 million Energy Transfer Partners LP common units, Energy Transfer Equity’s 45% interest in the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline (the Bakken pipeline project), and $879 million in cash (less amounts funded prior to closing for capital expenditures for the Bakken pipeline project) in exchange for 30.8 million newly issued class H units of Energy Transfer Partners.

Energy Transfer, a Dallas-based midstream oil and gas company, expects the transaction to close in March.

Tank joins calendar

Tank Holding scheduled a bank meeting for Thursday in New York to launch a $490 million senior secured credit facility, a market source remarked.

The facility consists of a $50 million six-year revolver and a $440 million seven-year term loan B, the source said.

GE Capital Markets is leading the deal that will be used to refinance existing debt, including the pay down of $25 million of senior notes, and fund a distribution to shareholders.

Tank Holding is a St. Bonifacius, Minn. and Lincoln, Neb.-based manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers used in above-ground, below-ground and portable applications.

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