Westmoreland Coal breaks; Presidio, Stonewall Gas surface with investor-friendly changes

By Sara Rosenberg

New York, Jan. 21 – Westmoreland Coal Co.’s add-on term loan freed up for trading during Wednesday’s market hours with levels quoted above its original issue discount.

Moving to the primary, Presidio Inc. adjusted the spread, offer price and call protection on its term loan, and Stonewall Gas Gathering LLC lifted price talk on its term loan B, widened the original issue discount and sweetened the call protection.

Also, Digital River Inc. and US Farathane Corp. disclosed talk with launch, New Media Investment Group Inc. came to market with a term loan that would combine all of its existing term loans into one tranche, and Heartland Dental Care LLC surfaced with new deal plans.

Westmoreland Coal’s fungible $75 million add-on senior secured term loan broke for trading on Wednesday with levels seen at 97¾ bid, 98¾ offered, according to a trader.

Pricing on the add-on loan is Libor plus 650 basis points with a 1% Libor floor, in line with the existing term loan, and it was sold at an original issue discount of 97½.

BMO Capital Markets Corp. is the lead on the deal that is being used to back the $34 million acquisition of Buckingham Coal Co. LLC.

Switching to the primary, Presidio lifted pricing on its $600 million seven-year first-lien covenant-light term loan to Libor plus 525 bps from Libor plus 475 bps, changed the original issue discount to 97 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

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