Hunterstown Generation hits secondary after size change; FR BR Holdings term loan on deck

By Sara Rosenberg

New York, Nov. 21 – Hunterstown Generation LLC (Kestrel Acquisition LLC) trimmed the size of its incremental term loan B and then freed up for trading on Wednesday afternoon.

In other happenings, FR BR Holdings joined the near-term primary calendar with a planned term loan offering.

Hunterstown tweaked, breaks

Hunterstown Generation cut its incremental term loan B due June 30, 2025 to $50 million from $150 million, and left pricing at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The incremental term loan still has 101 soft call protection for six months.

Final consents were due at 12:30 p.m. ET on Wednesday, and the loan began trading later in the session, with levels quoted at 99˝ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to fund a distribution.

An amendment was sought with this transaction and lenders were offered a 50 bps consent fee.

Closing is expected during the week of Nov. 26.

Hunterstown is a natural gas-fired combined cycle power plant located in the PJM-MAAC capacity region in Gettysburg, Pa.

FR BR readies loan

FR BR Holdings set a bank meeting for 1 p.m. ET in New York on Tuesday to launch a $500 million senior secured term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays and RBC Capital Markets are leading the deal that will be used to help fund First Reserve’s acquisition of a 50% interest in Blue Racer Midstream LLC from Dominion Energy, to pay associated fees and expenses, and for general corporate purposes.

Closing is expected by year end, subject to regulatory approvals.

Blue Racer is a Dallas-based midstream company formed in November 2012 by Caiman Energy II LLC and Dominion to own, operate, develop, and acquire midstream assets in the Utica and Marcellus Shales.

Office Depot closes

In other news, Office Depot Inc. closed on its $500 million senior secured first-lien term loan B (Ba3/BB-) due November 2022, according to a news release.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was issued at par. The loan has 101 hard call protection through Nov. 8, 2019 and amortization of 10% per annum.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 525 bps to 550 bps talk.

Goldman Sachs Bank USA led the deal that was used to reprice an existing term loan B down from Libor plus 700 bps with a 1% Libor floor.

Office Depot is a Boca Raton, Fla.-based provider of office supplies and business products and services.

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