WideOpenWest, Hilton, CAMP, M/A-COM break; Concordia dips; Harbor, Gulf, Ziggo update deals

By Sara Rosenberg

New York, Aug. 12 – WideOpenWest Finance LLC’s term loan B made its way into the secondary market on Friday, as did deals from Hilton Worldwide Finance LLC, CAMP International Holding Co. and M/A-COM Technology Solutions Holdings Inc.

In more trading happenings, Concordia International Corp.’s term loan softened as the company announced that its chief financial officer is leaving and slashed its full year 2016 guidance.

Moving to the primary market, Harbor Freight Tools USA Inc. lowered pricing on its term loan, added a step-down, trimmed the Libor floor and extended the call protection, and Gulf Finance LLC downsized its term loan B, widened the spread as well as the issue price and sweetened the call premium.

In addition, Ziggo increased sizes of its U.S. and euro term loans, ESH Hospitality Inc. moved up the commitment deadline on its term loan B, and XPO Logistics Inc. came to market with a fungible term loan B-2 one day after launching and pricing its original term loan B-2.

WideOpenWest frees up

WideOpenWest’s $2,065,000,000 seven-year term loan B (B1/B) broke for trading on Friday, with levels quoted at 99 5/8 bid, par offered, according to a trader.

Pricing on the term loan B is Libor plus 350 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B, partially redeem the company’s 13 3/8% senior subordinated notes due 2019 and fund the acquisition of NuLink.

Closing is expected during the week of Aug. 15.

WideOpenWest is a Denver-based provider of data, video and telephone services. NuLink is a Newnan, Ga.-based provider of high-speed Internet, digital cable TV and phone services.

Hilton breaks

Hilton’s $3,225,000,000 covenant-light term loan B-2 (Ba1/BBB) due October 2023 also emerged in the secondary market, with levels seen at 100 1/8 bid, 100 3/8 offered, according to a market source.

Pricing on the term loan B-2 is Libor plus 250 bps with no floor. The debt has 101 soft call protection for six months and was issued with a 25-bps extension fee/original issue discount.

During syndication, the spread on the loan firmed at the low end of the Libor plus 250 bps to 275 bps talk.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to amend and extend by three years a portion of the company’s existing $4,225,000,000 term loan B.

The company’s non-extended term loan was quoted at par bid, 100¼ offered on Friday, the source added.

Hilton is a McLean, Va.-based hospitality company.

CAMP starts trading

CAMP International’s credit facility freed up for trading too, with the $529 million seven-year first-lien term loan (B2/B-) quoted at 99 5/8 bid, par offered and the $188 million eight-year second-lien term loan (Caa2/CCC) quoted at 100¼ bid, 101 offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

On Thursday, first-lien loan pricing was lowered from Libor plus 425 bps and the discount was tightened from 99, and second-lien loan pricing was cut from Libor plus 850 bps and the discount was revised from 98.

The company’s $757 million senior secured facility also includes a $40 million five-year revolver (B2/B-).

UBS Investment Bank is leading the deal that will be used to refinance an existing holdco facility.

CAMP is a Merrimack, N.H.-based provider of aircraft maintenance tracking software and information services to business aviation.

M/A-COM tops OID

Another deal to begin trading was M/A-COM Technology’s $250 million add-on term loan due May 8, 2021, with levels quoted at par bid, 100¾ offered, according to a market source.

The add-on loan is priced at Libor plus 375 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.05.

It was upsized during syndication from an original size of $175 million.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the deal that will be used to add cash to the balance sheet.

M/A-COM is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

Concordia retreats

Also in trading, Concordia’s term loan fell to 94 bid, 96 offered from 97¼ bid, 98¼ offered after the company revealed that Adrian de Saldanha, chief financial officer, is leaving to pursue other opportunities, and full year 2016 guidance was revised, according to a trader.

Saldanha will be replaced by Concordia’s current executive vice president, Edward Borkowski.

Regarding full year guidance, the company said in a new release that it now expects revenues of $859 million to $888 million, down from prior estimates of $1.02 billion to $1.06 billion, and adjusted EBITDA between $510 million to $540 million, down from previous guidance of $610 million to $640 million.

The release went on to say that target 2016 year end net debt to EBITDA is 6.4 times or below, compared to the prior target of around 5.5 times.

Concordia quarterly numbers

Concordia disclosed second quarter results on Friday as well, showing a net loss of $570.4 million, or $11.18 per share, compared to a net loss of $3.3 million, or $0.1 per share, in the prior year. The net loss was a result of the impairment of $567.1 million recorded during the second quarter and the deduction of certain other significant cash and non-cash expenses.

Revenue for the quarter was $231.7 million, versus $75.2 million, in the comparable period in 2015.

And, adjusted EBITDA for the quarter was $142.3 million, compared to $54.4 million, in the previous year.

The company also announced that it is suspending its $0.075 dividend per common share, payable quarterly, as the belief is that the dividend payments can be better used towards long-term value-creating initiatives or debt repayment.

Concordia is an Oakville, Ont.-based pharmaceutical company focused on legacy pharmaceutical products and orphan drugs.

Harbor Freight reworked

Switching to the primary market, Harbor Freight Tools cut pricing on its $2.2 billion seven-year covenant-light first-lien term loan (Ba3/BB-) to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, added a 25-bps step-down at 3 times total net leverage, lowered the Libor floor to 0.75% from 1%, extended the 101 soft call protection to one year from six months and eliminated the MFN sunset, according to a market source.

As before, the term loan has an original issue discount of 99.5.

Recommitments were due at 1 p.m. ET on Friday, the source said.

The company’s $2.9 billion credit facility also includes a $700 million ABL revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

Gulf Finance sets changes

Gulf Finance trimmed its seven-year senior secured term loan B to $1.15 billion from $1.2 billion, lifted pricing to Libor plus 525 bps from talk of Libor plus 475 bps to 500 bps, moved the original issue discount to 97 from talk of 98.5 to 99 and pushed out the 101 soft call protection to one year from six months, a market source said.

Additionally, the excess cash flow sweep was changed to 100% at more than 5 times leverage, 75% at more than 3.5 times leverage, 50% at more than 3 times leverage and 25% at more than 2.5 times leverage, from 75% with total net leverage based step-downs, and the debt-service coverage ratio was modified to 1.5 times from 1.1 times.

Lastly, leverage based asset-sale step-downs were removed, and the company is now required to hold quarterly investor calls, the source continued.

The term loan still has a 1% Libor floor.

Recommitments are due at noon ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc., Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt at Penn Products Terminals LLC and Chelsea Petroleum Products I LLC, to fund a dividend, which was decreased due to the term loan B downsizing, and for general corporate purposes.

Ziggo upsizes

Ziggo raised its U.S. eight-year term loan B to $1 billion from $750 million and its euro eight-year term loan B to €2,589,000,000 from €750 million, according to a market source.

The U.S. term loan is still priced at Libor plus 300 bps with no floor and an original issue discount of 99.5, the euro term loan is still priced at Euribor plus 375 bps with no floor and a discount of 99.5, and both tranches still have 101 soft call protection for six months.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Scotiabank are the global coordinators on the deal (Ba3/BB-) and mandated lead arrangers with ABN Amro, BNP Paribas Securities Corp., Goldman Sachs Bank USA, ING Capital Markets, Morgan Stanley Senior Funding Inc. and Rabobank. Scotia is the administrative agent.

Ziggo, a Utrecht, Netherlands-based television, internet and telephone services provider, will use the new debt to refinance existing U.S. and euro term loans.

ESH revises deadline

ESH Hospitality accelerated the commitment deadline on its $1.3 billion seven-year covenant-light term loan B to noon ET on Tuesday from close of business on Wednesday, a source remarked.

The loan is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.65 billion credit facility (B1/BB+) also includes a $350 million revolver.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with cash on hand to refinance the remainder of the company’s roughly $1.5 billion CMBS loan.

ESH Hospitality is a subsidiary of Extended Stay America Inc., a Charlotte, N.C.-based owner/operator of company-branded hotels.

XPO launches

XPO launched on Friday a fungible $1,592,000,000 first-lien term loan B-2 due Oct. 30, 2021 at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due October 2021.

Closing and funding is expected on Nov. 1, the source added.

The company launched and allocated on Thursday a $400 million first-lien term loan B-2 due Oct. 30, 2021 that will be used with $535 million of senior notes to fund the repurchase of 7 7/8% senior notes due 2019. The loan had launched in the morning with talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, and then in the afternoon, the discount finalized at the tight end of guidance.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

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