MetroNet frees to trade atop OID; Aristrocrat Technologies, Refresco changes surface

By Sara Rosenberg

New York, May 4 – MetroNet firmed the original issue discount on its add-on first-lien term loan B within the guidance range, and the debt made its way into the secondary market on Wednesday.

In other news, Aristocrat Technologies lowered pricing on its term loan B and tightened the issue price, and Refresco Group BV updated spreads on its U.S. and euro term loans, and margin step-downs and original issue discounts on its U.S., euro and pound loans.

MetroNet sets OID, breaks

MetroNet finalized the original issue discount on its fungible $65 million add-on first-lien term loan B (B2/B) due June 2028 at 98.75, within the 98.57 to 99 talk, according to a market source.

Pricing on the add-on term loan is SOFR+CSA plus 375 basis points with a 0.75% floor, in line with the existing term loan, with CSA being 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

During the session, the add-on term loan B freed to trade, with levels quoted at 98 7/8 bid, 99 3/8 offered, another source added.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Citizens Bank, Fifth Third, Societe Generale and KKR Capital Markets are leading the deal that will be used to repay revolver borrowings.

Oak Hill Capital Partners and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Aristocrat flexes

Aristocrat Technologies cut pricing on its $500 million term loan B to SOFR plus 225 basis points from SOFR plus 250 bps and adjusted the original issue discount to 99.25 from 99, a market source said.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

The company’s $2.35 billion of credit facilities (Ba1//BBB-) also include a $500 million revolver and a $1.35 billion term loan A.

Recommitments were due at 3 p.m. ET on Wednesday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B and increase liquidity.

Aristocrat a North Ryde, Australia-based provider of gaming solutions.

Refresco updated

Refresco Group set pricing on its €1.53 billion equivalent U.S. term loan B at SOFR plus 425 bps, the low end of the SOFR plus 425 bps to 450 bps talk, modified the 25 bps step-down to at 5.1x first-lien net leverage from at 5.25x first-lien net leverage, and changed the original issue discount to 99 from talk in the range of 98 to 98.5, while leaving the 0.5% floor unchanged, a market source remarked.

The company also trimmed pricing on its €1.53 billion euro term loan B to Euribor plus 425 bps from Euribor plus 450 bps, revised the 25 bps step-downs to at 5.1x and 4.6x first-lien net leverage from at 5.5x and 5.25x first-lien net leverage, and firmed the discount at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of 98 to 98.5, the source continued. This tranche still has a 0% floor.

And, although pricing on the company’s €340 million equivalent pound-denominated term loan B remained at Sonia plus 525 bps with a 0% floor, the 25 bps step-downs were changed to at 5.1x and 4.6x first-lien net leverage from at 5.5x and 5.25x first-lien net leverage, and the original issue discount finalized at 98, the wide end of the 98 to 98.5 talk.

All of the term loans (B2/B+) still have 101 soft call protection for six months.

Refresco ticking fees

Refresco also outlined ticking fees on its term loans at half the margin from days 46 to 75 and the full margin thereafter, and made some changes to documentation.

Recommitments were due at 5 p.m. ET on Wednesday for the U.S. loan, and are due at 5 a.m. ET on Thursday for the euro and pound loans, the source added.

Allocations are targeted for Thursday.

Goldman Sachs, JPMorgan Chase Bank and KKR Capital Markets are the joint physical bookrunners on the deal, with Goldman left on the U.S. loan and JPMorgan left on the euro and pound loans. Credit Suisse, Natwest, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Mizuho, MUFG, ABN Amro, Credit Agricole, Unicredit, Rabobank, ING, BNP Paribas Securities Corp. and SMBC are joint bookrunners. JPMorgan is the agent.

The loans will be used to help fund KKR’s acquisition of a majority stake in the company. Refresco’s existing investors, PAI Partners and British Columbia Investment Management Corp., will maintain a significant minority position.

Refresco is a Rotterdam, the Netherlands-based beverage producer.

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