United Mileage, PQ, Meredith, Cardtronics break for trading; Tech Data update surfaces

By Sara Rosenberg

New York, June 25 – United Mileage Plus revised the original issue discount on its first-lien term loan B, then upsized the tranche and, following those changes, finalized pricing at the low end of guidance, and freed to trade late in the day on Thursday.

Also, PQ Corp. changed the issue price on its term loan B and shortened the call protection, Meredith Corp. set the spread on its incremental term loan at the high end of talk and widened the original issue discount, and Cardtronics plc updated the original issue discount on its term loan B, and then all of these deals broke for trading as well.

In more happenings, Tech Data Corp. modified the issue price on its ABL term loan due to strong demand from investors.

United Mileage tweaked

United Mileage changed the original issue discount on its seven-year first-lien term loan B (Baa3//BBB-) to 98 from 97 and accelerated the commitment deadline to 1:30 p.m. ET on Thursday from noon ET on Friday, according to a market source.

In the afternoon, the loan was upsized to $3 billion from $2 billion and the commitment deadline was changed to 2:30 p.m. ET on Thursday.

And, later in the day, pricing firmed at Libor plus 525 basis points, the low end of the Libor plus 525 bps to 550 bps talk.

As before, the term loan has a 1% Libor floor and is non-callable for three years, then at 104 in year four and 102 in year five.

United Mileage frees up

Late Thursday, United Mileage’s term loan B emerged in the secondary market, with one source quoting the debt at 98¾ bid, 99½ offered and another source quoting the debt at 99 bid, 99¾ offered.

Goldman Sachs Bank USA, Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $3 billion of senior secured notes to refinance a bridge facility, to fund the notes reserve account and the reserve account for the term loan, and to make an intercompany loan to United Airlines Inc. that will be used for general corporate purposes.

Closing is expected during the week of June 29.

Mileage Plus is the loyalty program of United Airlines, a Chicago-based airline company.

PQ sets changes

PQ tightened the original issue discount on its non-fungible $650 million senior secured covenant-lite term loan B (B1/BB-) due Feb. 7, 2027 to 98.5 from revised talk of 98 and initial talk in the range of 97 to 98, and shortened the 101 soft call protection to six months from one year, a market source said.

As before, the term loan is priced at Libor plus 300 bps with a 1% Libor floor.

Earlier in syndication, the term loan was upsized from $450 million as the company was no longer contemplating getting $200 million of other unsecured debt.

Recommitments were due at noon ET on Thursday, the source continued.

PQ hits secondary

PQ’s term loan B broke for trading late in the day, with levels quoted at 99 bid, 99½ offered, another source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Jefferies LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KeyBanc Capital Markets, BofA Securities, Inc. and SunTrust Robinson Humphrey Inc. are leading the deal. Credit Suisse is the administrative agent.

The loan will be used to refinance the company’s existing $625 million 6¾% senior secured notes due 2022 at the current call price.

Closing is expected in mid-July.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Meredith updated, trades

Meredith firmed pricing on its $410 million incremental term loan (Ba3/BB-) due Jan. 31, 2025 at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and revised the original issue discount to 96 from 97, a market source remarked.

The term loan still has a 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments were due at 2:45 p.m. ET on Thursday and the term loan began trading late in the day, with levels quoted at 96¼ bid, 97 offered, a trader added.

RBC Capital Markets is leading the deal that will be used with cash on hand and $300 million of senior secured notes to redeem the company’s series A preferred stock and to pay fees and expenses incurred in connection with the financing and redemption transactions.

Meredith is a Des Moines-based media and marketing company.

Cardtronics revised, breaks

Cardtronics modified the original issue discount on its $500 million seven-year term loan B (Ba2/BB+) to 98.25 from talk in the range of 97 to 98, according to a market source.

Pricing on the term loan is still Libor plus 400 bps with a 1% Libor floor, and the debt still has 101 soft call protection for one year.

The term loan B freed to trade in the afternoon, with levels quoted at 99 bid, par offered, a trader added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Cardtronics is a Houston-based ATM owner and operator.

Tech Data adjusts OID

Tech Data adjusted the original issue discount on its $1.5 billion covenant-lite ABL term loan (Ba1/BBB-/BBB-) to 98.5 from talk in the range of 97 to 98, and left pricing at Libor plus 350 bps with a 0% Libor floor, a market source said.

The company’s $5 billion of five-year credit facilities also include a $3 billion ABL revolver (Ba1/BBB-/BBB-) with pricing that can range from Libor plus 125 bps to 175 bps subject to a grid based on availability, and a $500 million covenant-lite FILO ABL term loan (Ba2/BBB-/BBB-) talked at Libor plus 550 bps with a 0% Libor floor and a discount of 96 to 97.

The ABL term loan has 101 soft call protection for six months, and the FILO term loan has 101 soft call protection for one year.

Commitments remained due at 5 p.m. ET on Thursday, the source added.

Tech Data leads

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, MUFG, Mizuho, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Nomura and PNC Capital Markets are leading Tech Data’s credit facilities, with Citigroup the left lead on the ABL term loan and JPMorgan the left lead on the FILO term loan. Citigroup is the administrative agent.

The new debt will be used with $3.2 billion of equity to fund the buyout of the company by Apollo Global Management Inc. for $130 per share in a transaction with an enterprise value of $5.4 billion.

Lenders should be prepared for the transaction to close on or after June 30.

Tech Data is a Clearwater, Fla.-based distributor of IT products.

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