Windstream exit term loan breaks atop OID; PLZ Aeroscience, AmeriLife on deck

By Sara Rosenberg

New York, Aug. 11 – Windstream Holdings Inc. extended the call protection on its term loan B and added a ticking fee, and then the debt made its way into the secondary market on Tuesday with levels quoted above its original issue discount.

In other news, PLZ Aeroscience Corp. and AmeriLife Holdings LLC joined this week’s primary loan calendar.

Windstream tweaked

Windstream extended the 101 soft call protection on its $750 million exit financing seven-year term loan B (B3) to one year from six months, added a ticking fee of the full spread after Aug. 25 and removed pricing step-downs, according to a market source.

Also, the MFN sunset was changed to 18 months from six months, the source said.

Pricing on the term loan remained at Libor plus 625 basis points with a 1% Libor floor and an original issue discount of 96.

Recommitments were scheduled to be due at 10 a.m. ET on Tuesday.

The company allocated $650 million of the total term loan amount. Holders of Midwest notes claims will receive the remaining $100 million of the term loan upon the company’s emergence from bankruptcy.

Windstream frees up

On Tuesday, Windstream’s term loan began trading, with levels quoted at 96¼ bid, 97¼ offered, another source added.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Truist Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds will be used with a new $500 million four-year super-senior revolver, $1.4 billion of senior first-lien notes and cash on hand to fund the repayment of a superpriority secured debtor-in-possession facility, fund other distributions provided for under the bankruptcy plan, and pay related fees and expenses.

Pricing on the revolver is Libor plus 300 bps with two 25 bps step-downs based on achievement of certain first-lien secured leverage ratios and a 1% Libor floor.

Windstream is a Little Rock, Ark.-based provider of advanced network communications and technology solutions.

PLZ readies deal

PLZ Aeroscience set a lender call for Thursday to launch $385 million of incremental bank debt, split between a $25 million incremental revolver and a non-fungible $360 million incremental term loan due Aug. 2, 2026, according to a market source.

The incremental term loan is co-terminus with the company’s existing $640.8 million term loan.

Antares Capital is leading the deal that will be used to repay existing debt and fund certain acquisitions.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol and liquid packaging for various consumer and industrial products.

AmeriLife joins calendar

AmeriLife scheduled a lender call for 9:30 a.m. ET on Wednesday to launch a fungible $80 million incremental covenant-lite first-lien term loan due March 18, 2027, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through Sept. 18.

Original issue discount talk on the incremental term loan is not yet available, the source added.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

AmeriLife is a Clearwater, Fla.-based insurance marketing organization.

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