Zayo loan dips; Pinnacle moves deadline; PGT, American Renal, Gray Television set talk

By Sara Rosenberg

New York, Jan. 11 – Zayo Group LLC’s term loan B headed lower in the secondary market during Monday’s session after the company launched a new term loan B-2 to investors.

And, over in the primary market, Pinnacle Foods Inc. accelerated the commitment deadline on its incremental term loan, PGT Inc. and American Renal Holdings Inc. released price talk on their loans with launch, and Gray Television Inc. came out with guidance on its incremental term loan ahead of its upcoming bank meeting.

Zayo softens

Zayo’s term loan B dropped by about half a point in trading on Monday to 97¾ bid, 98¼ offered in reaction to news that the company is seeking to take on additional debt in the form of a new $400 million covenant-light term loan B-2 (Ba2) due May 6, 2021, according to a trader.

Talk on the term loan B-2, which was launched to investors in the morning, is Libor plus 375 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, another source remarked.

A quick turnaround is being sought on the new loan, with commitments due at noon ET on Tuesday.

Morgan Stanley Senior Funding Inc. is leading the term loan B-2 that will be used to fund previously announced acquisitions.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Pinnacle shutting early

In more happenings, Pinnacle Foods moved up the commitment deadline on its $550 million incremental term loan (Ba2/BB+) to Tuesday from Wednesday, according to a market source.

The loan is talked in the Libor plus 350 bps area with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $350 million in notes and cash on hand to fund the acquisition of Boulder Brands Inc. for $11.00 per share, in a transaction valued at about $975 million, including around $265 million of net debt.

Closing is expected this quarter, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

PGT discloses guidance

PGT held its bank meeting in the afternoon, launching its $310 million seven-year covenant-light term loan B (B2/B+) with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

Commitments are due on Jan. 26.

Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the loan that will be used to fund the roughly $102 million acquisition of WinDoor Inc. and to refinance existing debt.

Closing is expected in the middle of this quarter, subject to customary conditions.

PGT is a Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors. WinDoor is an Orlando, Fla.-based provider of high-performance, impact-resistant windows and doors for five-star resorts, luxury high-rise condominiums, hotels and custom residential homes.

American Renal holds call

American Renal launched on a morning call its $60 million add-on first-lien term loan with talk of Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to market sources.

Commitments are due at noon ET on Jan. 20.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Barclays and Goldman Sachs Bank USA are leading the deal that will be used to repay second-lien term loan borrowings and fund a dividend.

In connection with the add-on loan, pricing on the company’s existing first-lien term loan will increase to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, sources added.

American Renal is a Beverly, Mass.-based provider of dialysis services.

Gray reveals talk

Gray Television disclosed talk of Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $400 million incremental senior secured term loan due June 2021 that is scheduled to launch with a bank meeting at 10 a.m. ET in New York on Tuesday, a source remarked.

Commitments are due on Jan. 20, the source added.

Wells Fargo Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to help fund the $442.5 million acquisition of all of the television and radio stations of Schurz Communications Inc.

Net leverage is expected to be around 5.5 times at closing.

Closing is expected on Feb. 1.

Gray Television is an Atlanta-based television broadcast company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.