Sears, AWAS Finance break; Surgery Center tweaks deal; Diebold, Huntsman reveal price talk

By Sara Rosenberg

New York, March 18 – Sears Holdings Corp.’s ABL term loan made its way into the secondary market on Friday, where the debt was seen trading above its original issue discount, and AWAS Finance’s extended term loan freed up as well.

Shifting to the primary market, Surgery Center Holdings Inc. (Surgery Partners Inc.) made a minor technical change to its term loan and extended the commitment deadline.

Also, Diebold Inc. released price talk on its term loan B in connection with its New York bank meeting, Huntsman International LLC disclosed talk on its refinancing transaction with launch and Global Payments Inc. joined the near-term new issue calendar.

Sears’ $750 million incremental senior secured ABL term loan (B) due July 20, 2020 freed up for trading on Friday, with levels quoted at 98 bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 750 basis points with a 1% Libor floor and it was sold at an original issue discount of 97. The debt includes hard call protection of 102 in year one and 101 in year two.

During syndication the spread on the term loan was reduced from Libor plus 800 bps and the discount firmed at the tight end of the 96 to 97 talk.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the loan that will be used to reduce borrowings under the company’s asset-based revolver.

Sears is a Hoffman Estates, Ill.-based retailer.

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