Atlantic Power breaks; Reynolds, iHeart tweak deals; EyeCare accelerates deadline

By Sara Rosenberg

New York, Jan. 29 – Atlantic Power Corp. firmed the issue price on its term loan B at the tight end of revised and initial talk, and then the debt freed to trade on Wednesday.

In more happenings, Reynolds Consumer Products LLC finalized the spread on its term loan at the low end of guidance and tightened the original issue discount.

Also, iHeartCommunications Inc. raised pricing on its term loan, and EyeCare Partners LLC moved up the commitment deadline for its first-lien term loan.

Furthermore, Spring Education Group and Dynatrace LLC disclosed price talk with launch, and Zotec Partners, Floor & Decor and Inovalon emerged with new deal plans.

Atlantic Power firms, trades

Atlantic Power set the issue price on its $380 million term loan B (Ba2/BB) due April 2025 at par, the tight end of revised talk of 99.75 to par and the tight end of initial talk of 99.875 to par, according to a market source.

The term loan is still priced at Libor plus 250 basis points with a step-down to Libor plus 225 bps at 2.75x consolidated total leverage and a 1% Libor floor, and still has 101 soft call protection for six months.

On Wednesday, the term loan broke for trading and levels were quoted at par 1/8 bid, par 5/8 offered in the afternoon, another source added.

Goldman Sachs Bank USA, BofA Securities, Inc., RBC Capital Markets, MUFG and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor and extend the maturity from April 2023.

Previously in syndication, the company added the pricing step-down to the term loan and the two-year maturity extension request.

Closing is expected during the week of Feb. 3.

Atlantic Power is a Dedham, Mass.-based power generation and infrastructure company.

Reynolds Consumer updated

Reynolds Consumer Products firmed pricing on its $2.475 billion seven-year first-lien term loan (Ba1/BB+) at Libor plus 175 bps, the low end of the Libor plus 175 bps to 200 bps talk, and changed the original issue discount to 99.875 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing Reynolds Group Holdings debt.

Reynolds Consumer is a Lake Forest, Ill.-based consumer products company.

iHeart lifts spread

iHeartCommunications widened pricing on its $2.101 billion term loan to Libor plus 300 bps from talk in the range of Libor plus 250 bps to 275 bps, a market source remarked.

The term loan still has a par issue price.

BofA Securities, Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 400 bps.

iHeartCommunications San Antonio-based media company.

EyeCare revises timing

EyeCare Partners accelerated the commitment deadline for its $900 million seven-year covenant-lite first-lien term loan (B2/B) to 5 p.m. ET on Monday from 5 p.m. ET on Feb. 5, a market source said.

Talk on the first-lien term loan, which includes a $175 million delayed-draw tranche, is Libor plus 400 basis points to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1.185 billion of credit facilities also include a $110 million revolver and a $175 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, Deutsche Bank Securities Inc., UBS Investment Bank and Nomura are leading the deal that will help fund the buyout of the company by Partners Group.

Closing is expected this quarter.

EyeCare Partners is a St. Louis-based eye care services provider.

Spring sets guidance

Also in the primary market, Spring Education Group held its lender call on Wednesday and launched its $634 million term loan at talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Macquarie Capital (USA) Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps.

Spring Education is a California-based provider of pre-K through 12th grade education.

Dynatrace repricing

Dynatrace launched during the session a $521 million first-lien term loan due August 2025 talked at Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Consents/commitments are due at noon ET on Tuesday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 275 bps.

Dynatrace is a Waltham, Mass.-based software company providing software intelligence for the enterprise cloud.

Zotec joins calendar

Zotec Partners set a bank meeting for 10 a.m. ET in New York on Thursday to launch a $292 million first-lien term loan B, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to refinance an existing term loan B.

Zotec Partners is a Carmel, Ind.-based provider of comprehensive revenue cycle management solutions for hospitals and office-based physician practices.

Floor & Decor on deck

Floor & Decor scheduled a lender call for 10 a.m. ET on Monday to launch an amendment and extension of its existing term loan, a market source remarked.

UBS Investment Bank, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal.

Floor & Decor, which is majority owned by Ares and Freeman Spogli, is an Atlanta-based specialty retailer in the hard surface flooring market.

Inovalon coming soon

Inovalon emerged with plans to hold a lender call at 2 p.m. ET on Thursday to launch a new loan transaction to current and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Inovalon is a Bowie, Md.-based provider of cloud-based platforms empowering data-driven health care.

UPC Financing sizes

In other news, UPC Financing Partnership is targeting a size of about $700 million for its in market U.S. covenant-lite term loan due April 30, 2028 and about €400 million for its in market euro covenant-lite term loan due April 30, 2029 with the idea being to raise the amount needed to repay its $1.14 billion 5 3/8% 2025 notes, according to sources.

As previously reported, the U.S. term loan is talked at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5.

Talk on the euro term loan is Euribor plus 250 bps with 0% floor and a discount of 99.75.

Both term loans (Ba3/BB/BB+) have 101 soft call protection for six months.

Commitments are due at noon ET on Friday.

BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas Securities Corp., Credit Agricole, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., ING Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., NatWest and Bank of Nova Scotia are leading the deal, with BofA left on the U.S. and Credit Suisse left on the euro. Scotia is the administrative agent.

UPC is a European cable company.

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