Univision extended term loan frees up; Pathway, Tech Data, PG&E release proposed terms

By Sara Rosenberg

New York, June 15 – Univision Communications Inc. modified the original issue discount/extension fee on its amended and extended first-lien term loan B, and the debt made its way into the secondary market on Monday.

In more happenings, Pathway Vet Alliance LLC released price talk on its first-lien term loan, Tech Data came out with structure and price guidance on its credit facilities, and PG&E Corp. launched its exit term loan.

Univision tweaked, breaks

Univision Communications changed the original issue discount/extension fee on its $2 billion amended and extended first-lien term loan B (B2/B) due March 2026 to 97.5 from talk in the range of 98 to 98.5, a market source remarked.

As before, the extended term loan is priced at remained at Libor plus 375 basis points with a 1% Libor floor and has 101 soft call protection for one year.

The extended term loan began trading on Monday and levels were quoted at 97˝ bid, 98 offered, another source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to extend the maturity date of the existing term loan by two years from 2024.

Current pricing on the existing term loan is Libor plus 275 bps.

Univision is a New York-based Spanish language TV and radio broadcaster.

Pathway reveals guidance

Pathway Vet Alliance came out with price talk on its $945 million senior secured first-lien term loan (B3/B) due March 2027 shortly before its 2 p.m. ET lender call kicked off, according to a market source.

Talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for six months, the source said.

The first-lien term loan is split between a $77 million delayed-draw piece under which the commitment terminates in March 2022 and there is a ticking fee of half the drawn spread until June 30 and the full spread thereafter, and an $868 million funded piece.

Commitments are due at 2 p.m. ET on June 23, the source added.

The company’s $1.28 billion of credit facilities also include an $80 million revolver due March 2025 and a $255 million privately placed senior secured second-lien term loan due March 2028.

Jefferies LLC, BofA Securities Inc., Ares, Golub and Nomura are leading the deal that will fund the recently completed butout of the company by TSG Consumer Partners from Morgan Stanley Capital Partners.

Pathway Vet is an Austin, Texas-based veterinary management group.

Tech Data details emerge

Tech Data held its call on Monday and launched to investors $5 billion of five-year ABL credit facilities (//BBB-), consisting of a $3 billion ABL revolver, a $1.5 billion covenant-lite ABL term loan and a $500 million covenant-lite FILO ABL term loan, a market source said.

Pricing on the revolver can range from Libor plus 125 bps to 175 bps subject to a grid based on availability, talk on the term loan is Libor plus 350 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for six months, and talk on the FILO term loan is Libor plus 550 bps with a 0% Libor floor, a discount of 96 to 97 and 101 soft call protection for one year, the source continued.

Commitments are due at 5 p.m. ET on June 25.

Tech Data lead banks

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 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 about $5.4 billion.

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

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

PG&E sets talk

PG&E launched a $1 billion five-year senior secured term loan B at talk of Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the company’s exit from Chapter 11.

Based on a 424B5 filed with the Securities and Exchange Commission, the company is also expected to get a $500 million revolver, a $3.5 billion revolver at Utility, $3.75 billion of senior secured high-yield notes, $5.925 billion of first mortgage bonds and a $9 billion PIPE transaction.

PG&E is a San Francisco-based electric and natural gas utility.

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