Terex frees to trade; Windstream, Equinox Holdings tweak deals; MYOB modifies deadline

By Sara Rosenberg

New York, March 5 – Terex Corp. saw its incremental first-lien term loan B-1 surface in the secondary market on Tuesday, and the debt was trading above its original issue discount.

Moving to the primary market, Windstream Services LLC trimmed the spread on its debtor-in-possession term loan, Equinox Holdings Inc. upsized its incremental term loan B and MYOB accelerated the commitment deadline on its U.S. first-lien term loan.

Additionally, AMC Entertainment Holdings Inc. came to market with a new term loan B, Nine West announced price talk on its term loan with launch, and Carbonite Inc. joined this week’s new issue calendar.

Terex hits secondary

Terex’s non-fungible $200 million incremental first-lien term loan B-1 (Ba2/BBB-) due Jan. 31, 2024 began trading on Tuesday, with levels quoted at 98¾ bid, 99½ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 275 basis points with a step-down to Libor plus 250 bps based on corporate ratings of at least Ba3/BB- and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the incremental term loan was lowered from Libor plus 300 bps, the step-down was added, and the discount was tightened from talk in the range of 98.5 to 99.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., Credit Agricole, Commerzbank and Barclays are leading the deal that will be used to repay revolver borrowings.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

Windstream flexes lower

Switching to the primary market, Windstream Services reduced pricing on its $500 million DIP covenant-light term loan to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps, a market source said.

As before, the term loan has no Libor floor, an original issue discount of 99.5 and 101 call protection during the first six months.

The company’s $1 billion 24-month DIP facilities (//BBB-) also include a $500 million revolver.

Commitments remain due at noon ET on Wednesday, the source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities are leading the deal that will be used for general corporate purposes, adequate protection payments and restructuring expenses.

Windstream is a Little Rock, Ark.-based telecommunications provider.

Equinox upsizes

Equinox lifted its incremental covenant-light term loan B (B1/B+) due March 2024 to $225 million from $200 million, according to a market source.

The incremental term loan is priced at Libor plus 300 bps with an original issue discount of 98.8, and has 101 soft call protection for six months.

Previously in syndication, pricing on the incremental loan was cut from talk in the range of Libor plus 375 bps to 400 bps, the discount widened from 99, the maturity was shortened from seven years, and the debt was revised to be fungible with the existing term loan due March 2024 from non-fungible.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding, City National Bank, Citigroup Global Markets, J.P. Morgan Securities and Goldman Sachs Bank USA are leading the deal that will be used for capital expenditures associated with new club openings and for general corporate purposes.

Equinox is a New York-based exercise and fitness company.

MYOB changes deadline

MYOB moved up the commitment deadline on its $486 million seven-year covenant-light first-lien term loan (B2/B) to noon ET on Thursday from noon ET on Friday, a market source remarked.

Talk on the term loan is Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities, KKR Capital Markets, Jefferies LLC, Macquarie Capital (USA) Inc., Credit Agricole, Natixis and Crescent are leading the deal that that will help fund the buyout of the company by KKR.

In addition to the U.S. term loan, the company is getting an A$50 million revolver, a A$250 million first-lien term loan, a A$75 first-lien delayed-draw term loan, a A$145 second-lien term loan and a A$25 million second-lien delayed-draw term loan.

MYOB is an Australia-based provider of online business management solutions.

AMC holds call

AMC Entertainment hosted a lender call at 2 p.m. ET on Tuesday to launch a $2 billion seven-year covenant-light term loan B talked at Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on March 14, the source added.

Citigroup Global Markets is leading the loan that will be used to refinance existing credit facilities and redeem 5.875% senior subordinated notes due 2022 and 6% senior secured notes due 2023.

AMC is a Leawood, Kan.-based movie exhibitor.

Nine West sets talk

Nine West held its lender call in the morning and disclosed price talk on its $325 million five-year first-lien term loan at Libor plus 800 bps with a 1% Libor floor and an original issue discount of 96 to 97, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Commitments are due on March 15, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to fund the company’s emergence from bankruptcy.

Nine West is a New York-based designer, wholesaler and brand licensor of denim, women’s apparel and jewelry.

Carbonite on deck

Carbonite set a bank meeting for Thursday to launch up to $725 million of credit facilities, a market source remarked.

The facilities consist of an up to $175 million five-year revolver and a $550 million seven-year term loan B, the source added.

Barclays, Citizens Bank, RBC Capital Markets and HSBC Securities are leading the senior secured deal that will be used with cash on hand to fund the acquisition of Webroot Inc. for about $618.5 million.

Closing is expected this quarter, subject to the regulatory clearance and other customary conditions.

Pro forma net leverage will be around 4.3 times, including the benefit of identified cost synergies.

Carbonite is a Boston-based cloud-based data protection provider. Webroot is a Broomfield, Colo.-based cybersecurity company.

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