Terra-Gen Finance frees to trade above OID; TierPoint lifts revolver size; PSC fills out

By Sara Rosenberg

New York, Nov. 26 – Terra-Gen Finance Co. LLC’s term loan B emerged in the secondary market on Wednesday with levels quoted above its original issue discount.

Meanwhile, in the primary, TierPoint upsized its revolver, PSC Industrial Services’ credit facility was oversubscribed ahead of its commitment deadline, and Astoria Energy LLC joined the near-term calendar.

Terra-Gen Finance’s $300 million seven-year term loan B (Ba3/BB-) began trading on Wednesday with levels seen at par ¼ bid, 101¼ offered, according to a trader.

Pricing on the loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is soft call protection of 102 in year one and 101 in year two.

Recently, the spread on the term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount tightened from 99.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to equity owners.

Moving to the primary market, TierPoint lifted its revolver to $45 million from $40 million, according to a market source.

The company’s now $465 million credit facility also includes $330 million seven-year first-lien term loan (B2/B+) and a $90 million eight-year second-lien term loan (Caa2/CCC+).

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor.

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