Carroll County Energy breaks atop OID; Belfor, PSS Industrial reveal price guidance

By Sara Rosenberg

New York, Feb. 8 – Carroll County Energy LLC’s term loan B made its way into the secondary market on Friday and was quoted above its original issue discount.

Meanwhile, in the primary market, Belfor and PSS Industrial Group Corp. released price talk on their in-market first-lien term loans.

Carroll County frees up

Carroll County Energy’s $460 million seven-year first-lien term loan B (Ba2/BB) began trading on Friday, with the debt quoted at 99½ bid, according to a trader.

Pricing on the term loan B is Libor plus 350 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan B was lowered from Libor plus 375 bps.

Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Credit Agricole are leading the deal that will be used to refinance existing debt and pay a distribution to shareholders.

Carroll County Energy is the 100% owner of a recently commissioned, highly efficient natural gas fired combined-cycle electric generating facility with a nominal capacity of 700 megawatts in Carroll County, Ohio.

athenahealth fairly steady

Also in trading, athenahealth Inc.’s $3.66 billion seven-year first-lien term loan B (B2/B/BB) was quoted during the session by one trader at 98¼ bid, 98¾ offered and by a second trader at 98 1/8 bid, 98 5/8 offered. The debt freed to trade late Thursday at 98¼ bid, 98¾ offered.

Pricing on the first-lien term loan is Libor plus 450 bps with a 0% Libor floor, and it was sold at an original issue discount of 98. The loan has 101 soft call protection for one year.

On Thursday, pricing on the term loan firmed at the low end of the Libor plus 450 bps to 475 bps talk, the call protection was extended from six months and some documentation changes were made.

The company’s $4.86 billion of senior secured credit facilities also include a $400 million revolver (B2/B/BB) and an $800 million eight-year second-lien term loan (//B-).

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Ares Capital Management LLC and KKR Capital Markets LLC are leading the deal.

athenahealth funding buyout

Proceeds from athenahealth’s credit facilities, up to $600 million preferred equity and cash on hand will be used to finance its purchase by Veritas Capital and Evergreen Coast Capital for $135 in cash per share. The transaction is valued at about $5.7 billion.

Following the closing, Veritas and Evergreen expect to combine athenahealth with Virence Health, the GE health care value-based care assets that Veritas acquired earlier this year. The combined company is expected to operate under the athenahealth brand.

Closing is expected this quarter, subject to the approval of the holders of a majority of athenahealth’s outstanding shares, regulatory approvals and customary conditions.

athenahealth is a Watertown, Mass.-based provider of network-enabled services for hospital and ambulatory customers.

Belfor floats guidance

Belfor came out with talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99 on its $585 million seven-year first-lien term loan (Ba3/B) that launched with a bank meeting on Thursday, a market source remarked.

Commitments are due at noon ET on Feb. 14.

The company’s $935 million of credit facilities also include a $200 million revolver (Ba3/B) and a $150 million second-lien term loan.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by American Securities.

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

PSS talk surfaces

PSS Industrial Group is talking its $300 million term loan B at Libor plus 550 bps to 575 bps with an original issue discount of 98, according to a market source.

The company’s $350 million of senior secured credit facilities (B3/B), which launched with a bank meeting on Thursday, also include a $50 million revolver, the source said.

KeyBanc Capital Markets and ING Capital are leading the deal that will be used to refinance existing debt and for general corporate purposes.

PSS Industrial is a Houston-based distributor of consumable products and services to the energy and industrial sectors.

Alera launches

Alera Group held its lender call on Friday to launch its fungible $75 million add-on covenant-light term loan B (B2) due August 2025 that is priced at Libor plus 450 bps with a 0% Libor floor and is talked with an original issue discount of 99, a market source said.

Commitments are due at noon ET on Thursday, the source added.

In addition, the company is getting a $30 million privately placed delayed-draw first-lien term loan (B2).

J.P. Morgan Securities LLC is leading the deal, which will be used for acquisition financing.

Alera is a Deerfield, Ill.-based insurance brokerage and wealth management firm.

Dun & Bradstreet closes

In other news, the buyout of Dun & Bradstreet Corp. by an investor group led by CC Capital, Cannae Holdings, Bilcar LLC, Black Knight Inc. and Thomas H. Lee Partners LP for $145 in cash per share has been completed, according to a news release.

To help fund the transaction, Dun & Bradstreet got $2.93 billion of senior secured credit facilities that consist of a $400 million five-year revolver and a $2.53 billion seven-year term loan B.

Pricing on the term loan B is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the term loan B was downsized from $2.63 billion, pricing was increased from talk in the range of Libor plus 450 bps to 475 bps, a 25 bps pricing step-down at 3.7 times leverage was removed, the call protection was extended from six months, the asset-sale step-downs were eliminated and the inside maturity carve-out was reduced to $350 million with no grower from $575 million or 75% EBITDA.

Dun & Bradstreet leads

Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets, Credit Suisse Securities (USA) LLC, MUFG and Mizuho led Dun & Bradstreet’s credit facilities.

Other funds for the buyout came from $700 million of secured notes, which were upsized from $500 million during marketing, $750 million of unsecured notes, which were downsized from $850 million, equity and preferred equity.

Dun & Bradstreet is a Short Hills, N.J.-based provider of commercial data and analytics.

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