Heritage frees to trade; Sinclair, ION, Pike, Ensemble, Ineos, Glass Mountain, Garda on deck

By Sara Rosenberg

New York, July 8 – Heritage Power LLC’s credit facilities hit the secondary market on Monday and the term loan B was quoted above its original issue discount.

In other news, Sinclair Broadcast Group Inc. (Diamond Sports Group LLC)/Sinclair Television Group, ION Media Networks, Pike Corp., Ensemble Health Partners, Ineos Enterprises, Glass Mountain Pipeline Holdings LLC and Garda World Security Corp. all joined this week’s primary calendar.

Heritage Power breaks

Heritage Power’s $520 million seven-year term loan B freed up for trading on Monday, with levels quoted at 98¼ bid, 99 offered, a market source remarked.

Pricing on the term loan B is Libor plus 600 basis points with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months and a debt service coverage ratio covenant. There is a debt service account and a liquidity reserve as well.

During syndication, the term loan B was downsized from $550 million, pricing was increased from Libor plus 475 bps, the Libor floor was revised from 0% and the discount widened from 98.5. Also, a $61.1 million seven-year term loan C that was planned to be sold as a strip with the term loan B was eliminated from the transaction.

In addition to the term loan B, the company’s $565 million of credit facilities (B1/B+) include a $45 million five-year revolver.

Jefferies LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing indebtedness at the GenOn corporate level, fund a liquidity reserve, and pay related transaction fees and expenses.

Closing is expected this month.

Heritage is an owner of natural gas and oil-fueled power generation facilities.

Sinclair timing surfaces

Moving to the primary market, Sinclair Broadcast scheduled a lender meeting for 10:30 a.m. ET in New York on Tuesday to launch its previously announced $3.3 billion seven-year term loan B and Sinclair Television will launch at the meeting its previously announced $700 million seven-year incremental term loan B, according to a market source.

Commitments are due at noon ET on July 18, the source said.

Based on filings with the Securities and Exchange Commission, Sinclair Broadcast is also expected to get a $300 million five-year revolver and Sinclair Television is expected to amend its existing credit agreement to get a $650 million revolver.

JPMorgan Chase Bank, Deutsche Bank Securities Inc., RBC Capital Markets and BofA Securities Inc. provided the debt commitment.

Sinclair funding acquisition

Proceeds from the Sinclair loans will be used with an expected offering of $2.55 billion of senior secured notes and an expected offering of $2,325,000,000 of senior unsecured notes to help fund the acquisition of 21 Regional Sports Networks and Fox College Sports from the Walt Disney Co.

Also, to help fund this acquisition, Diamond Sports has received a commitment from JPMorgan Chase Funding Inc. to purchase newly issued perpetual preferred equity of Diamond Sports for $1,025,000,000.

The transaction ascribes a total enterprise value to the assets equal to $10.6 billion, reflecting a purchase price of $9.6 billion, after adjusting for minority equity interests.

Closing is subject to customary conditions, including the approval of the U.S. Department of Justice.

Consolidated net leverage is expected to be 4.7 times and 5.1 times through the preferred financing.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

ION Media on tap

ION Media Networks set a lenders’ presentation for 2 p.m. ET on Tuesday to launch a $1,365,635,015 first-lien term loan B (B1), a market source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to extend an existing term loan and fund a distribution to shareholders.

ION is a West Palm Beach, Fla.-based television broadcast network.

Pike joins calendar

Pike scheduled a lenders’ presentation for 2 p.m. ET on Wednesday to launch a $1.02 billion first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt, fund an acquisition and pay related fees and expenses.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Ensemble coming soon

Ensemble Health Partners will hold a bank meeting at 1 p.m. ET in New York on Tuesday to launch a $672 million first-lien term loan (B), a market source remarked.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Guggenheim are leading the deal that will be used to help fund the buyout of a majority stake in the company by Golden Gate Capital from Bon Secours Mercy Health.

Closing is subject to regulatory approvals.

Ensemble Health is a revenue cycle management provider.

Ineos readies deal

Ineos set a bank meeting in London for Tuesday and a meeting in New York for Wednesday to launch €1.7 billion equivalent credit facilities, according to a market source.

The facilities consist of a €525 million equivalent U.S. dollar seven-year term loan B, a €525 million seven-year term loan B, a €350 million five-year term loan A and a €300 million three-year receivables securitization facility, the source said.

Commitments are due on July 25.

Barclays, BNP Paribas and NatWest Markets are leading the deal that will be used to fund acquisitions, refinance existing debt and pay transaction expenses.

Ineos is a London-based producer of intermediate chemicals.

Glass Mountain on deck

Glass Mountain Pipeline emerged with plans to hold a lender call on Wednesday to launch a roughly $129 million incremental term loan B due December 2024, a market source said.

Barclays is the left lead on the deal that will be used for general corporate purposes and to pay related fees and expenses.

The company will also seek an amendment to its existing credit agreement to allow for the one-time incurrence of the incremental loan and to increase the capital expenditures basket to permit the use of projected internally generated cash flow.

Glass Mountain Pipeline is a multi-play crude oil transportation system located in the Stack/Merge, Granite Wash and Mississippi Lime plays.

Garda plans call

Garda World Security scheduled a lender call for 10:30 a.m. ET on Tuesday to launch $190 million incremental first-lien term loan B due May 26, 2024 that is expected to be fungible with the existing term loan B, according to a market source.

Barclays is leading the deal.

The new loan will be used to fund acquisitions, including Whelan Security and CPS Security.

Rhone Group is the sponsor.

Garda is a Montreal-based provider of cash logistics and security solutions.

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