Consolidated Energy, Fusion, Speedcast, Greenway Health, Albertsons, CityMD, Ensono break

By Sara Rosenberg

New York, May 3 – Consolidated Energy Finance SA increased its term loan B size, set the spread at the low end of guidance and revised the original issue discount, and upsized its revolver, and Fusion reworked its term loan sizes and updated issue prices, and then both of these deals broke for trading on Thursday.

Also, Speedcast International Ltd. firmed pricing on its term loan at the tight side of talk and Greenway Health LLC set the spread on its term loan at the high end of guidance, before freeing up, and deals from Albertsons Cos. Inc., CityMD (WP CityMD Bidco LLC) and Ensono LP emerged in the secondary market as well.

In more happenings, KeyW Corp. set pricing on its first-lien term loan at the high end of guidance and sweetened the spread, issue price and call protection on its second-lien term loan, Arterra Wines Canada Inc. modified the original issue discount on its incremental term loan B-1, and EnergySolutions LLC moved up the commitment deadline on its credit facilities.

Additionally, Evans Network of Cos., NorthStar Financial Services Group LLC and TerraForm Power Operating LLC released price talk with launch, and Quest/One Identity, GMS Inc. (GYP Holdings III Corp.), Hearthside Food Solutions LLC, Power Products LLC, Southwire Co. LLC and Keane Group Holdings LLC joined the near-term calendar.

Consolidated Energy revised

Consolidated Energy raised its seven-year covenant-light term loan B to $600 million from $550 million, finalized pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, and moved the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

In addition, the company upsized its revolver to $225 million from $200 million, the source said.

Recommitments were due at noon ET on Thursday.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the joint bookrunners on the deal and joint lead arrangers with Deutsche Bank Securities Inc., SMBC and Credit Suisse Securities (USA) LLC.

Consolidated Energy frees up

By late day, Consolidated Energy’s bank debt hit the secondary market, with the term loan B quoted at par ¼ bid, par ¾ offered, a trader added.

The now $825 million of senior secured credit facilities will be used to refinance existing Methanol Holdings (Trinidad) Ltd. senior secured facilities, and funds from the term loan B upsizing will be used to repay $25 million of funded revolver debt and add cash to the balance sheet.

Closing is expected on Monday.

Consolidated Energy is an acquirer and developer of companies that focus on alternative waste management and energy production.

Fusion updated

Fusion upsized its four-year first-lien term loan A to $45 million from $40 million and left pricing at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source. The debt still has 101 soft call protection for six months.

Also, the company downsized its five-year first-lien term loan B to $510 million from $530 million, which is still larger than initial talk of $500 million, and firmed the original issue discount at 96, the wide end of revised talk of 96 to 97 and wide of initial talk in the range of 98.5 to 99, the source said. This tranche is still priced at Libor plus 750 bps with a 1% Libor floor, and is non-callable for one year, then has a 101 soft call for months 13 through 24.

Furthermore, the company increased its 5.5-year second-lien term loan to $85 million from $70 million and set the discount at 96, the wide end of revised talk of 96 to 96.25 and wide of initial talk of 97.75. Pricing on this tranche remained at Libor plus 1,050 bps with a 1% Libor floor, and the debt is still non-callable for 18 months, then at 104 for months 19 through 24 and 102 for months 25 through 36.

The $680 million credit facilities also include a $40 million revolver.

Fusion begins trading

Before day’s end, Fusion’s credit facilities broke for trading, with the term loan A quoted at 99½ bid, par ½ offered, the term loan B quoted at 96 bid, 97 offered and the second-lien term loan quoted at 96 bid, 97 offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance debt in connection with the all-stock merger of Fusion and the Cloud and Business Services customers, operations and infrastructure of Birch Communications.

Earlier in syndication, the revolver was downsized from $50 million and the term loan A was added to the capital structure. Also, pricing on the term loan B was lifted from talk in the range of Libor plus 675 bps to 725 bps, the call protection was changed from a 101 soft call for six months, the maturity was shortened from seven years, and amortization was increased to 5% per annum in years one and two and 7.5% per annum thereafter, from 2.5% per annum. And, pricing on the second-lien term loan was lowered from Libor plus 1,150 bps, the call protection was changed from non-callable for a period to be determined with step-downs, and the maturity was shortened from 7.5 years.

Fusion is a New York-based cloud services provider.

Speedcast firms, breaks

Speedcast set the spread on its $425 million seven-year covenant-light first-lien term loan (Ba3/BB-) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, a market source remarked.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

After terms finalized, the loan made its way into the secondary market and levels were quoted at par bid, par ½ offered, a trader added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Credit Agricole, ING and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt.

Speedcast is an Australia-based provider of telecommunications managed services.

Greenway finalized, trades

Greenway Health firmed pricing on its $526 million first-lien term loan at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Once terms were set, the loan began trading and levels were seen at par 1/8 bid, par 5/8 offered, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Greenway Health is a Carrollton, Ga.-based provider of clinical, financial, connectivity and information software products and services to physician practices.

Albertsons hits secondary

Albertsons’ $1.5 billion five-year asset-based last-out term loan freed up, with levels seen at par ¼ bid, par 5/8 offered, according to a trader.

The term loan is priced at Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 75, the full margin from days 76 to 105 and the full margin plus Libor thereafter. The loan will fund into a segregated account after day 106.

During syndication, the term loan was upsized from $1.2 billion and pricing was reduced from Libor plus 350 bps.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC and MUFG are leading the deal that will be used to refinance existing debt at Rite Aid Corp. and, if applicable, fund the cash portion of the Rite Aid merger.

Albertsons is a Boise, Idaho-based food and drug retailer. Rite Aid is a Camp Hill, Pa., national drugstore chain.

CityMD tops par

CityMD’s $120 million incremental first-lien term loan (B3/B-) due June 2024 and repriced $224 million first-lien term loan (B3/B-) due June 2024 also began trading, with levels seen at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan debt is Libor plus 350 bps with a 25 bps step-down at 0.5 times inside closing net leverage and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

On Wednesday, pricing on the term loans firmed at the high end of the Libor plus 325 bps to 350 bps talk, the step-down was added and the issue price on the incremental loan was tightened from 99.75.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and ING are leading the deal.

Proceeds from the incremental loan will be used to fund a tuck-in acquisition, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

CityMD is an urgent care provider in the New York Metro area.

Ensono starts trading

Ensono’s $123 million eight-year covenant-light second-lien term loan (Caa2/CCC) broke too, with levels quoted at 96½ bid, 97½ offered, a trader remarked.

Pricing on the second-lien term loan is Libor plus 925 bps with a 0% Libor floor and it was sold at an original issue discount of 96. The debt has hard call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $643 million of senior secured credit facilities also include a $60 million five-year revolver (B2/B) and a $460 million seven-year covenant-light first-lien term loan (B2/B).

The first-lien term loan is priced at Libor plus 525 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

On Thursday, the first-lien term loan was quoted at par bid, 101 offered, the trader added. It had been quoted at 99¾ bid, par ¾ offered when it freed up for trading on April 30.

Ensono lead banks

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets and TD Securities (USA) LLC are leading Ensono’s credit facilities.

During syndication, pricing on the second-lien loan firmed at the wide end of the Libor plus 900 bps to 925 bps talk, the discount was revised from 99 and the call protection was changed from 102 in year one and 101 in year two. Additionally, pricing on the first-lien term loan was set at the high end of the Libor plus 500 bps to 525 bps talk and the discount was changed from 99.5.

Proceeds will be used to help fund the acquisition of Wipro Ltd.’s hosted data center services business for $405 million.

Closing is expected in late May.

Ensono is a Chicago-based hybrid IT services provider.

KeyW changes surface

Back in the primary market, KeyW set pricing on its $215 million six-year first-lien term loan (B1/B+) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, according to a market source.

Also, the company lifted pricing on its $75 million seven-year second-lien term loan (Caa1/B-) to Libor plus 875 bps from talk in the range of Libor plus 825 bps to 850 bps, modified the original issue discount to 98 from 99 and revised the call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

The company’s $340 million of senior secured credit facilities also include a $50 million five-year revolver (B1/B+).

Allocations are expected on Friday, the source added.

RBC Capital Markets, Fifth Third, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance the company’s capital structure.

KeyW is a Hanover, Md.-based total solutions provider for the intelligence, cyber and counterterrorism communities.

Arterra tweaks price

Arterra Wines Canada changed the original issue discount on its fungible $130 million incremental senior secured covenant-light term loan B-1 (B1/B) due Dec 15, 2023 to 99.75 from 99.5, a market source remarked.

Pricing on the loan is still Libor plus 275 bps with a 1% Libor floor, and the debt still has 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on Friday, moved up from noon ET on Monday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing second-lien debt and fund cash to the balance sheet for general corporate purposes.

Arterra, formerly known as Constellation Brands Canada, is a Mississauga, Ont.-based producer and distributor of wine brands.

EnergySolutions accelerated

EnergySolutions moved up the commitment deadline on its $725 million of senior secured credit facilities (B2/B) to noon ET on Friday from Tuesday, according to a market source.

The facilities consist of a $150 million five-year revolver, and a $575 million seven-year covenant-light term loan B talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, pay a dividend to shareholders and provide liquidity for working capital.

EnergySolutions is a Salt Lake City-based nuclear services company.

Evans releases talk

Evans Network held its bank meeting on Thursday and announced price talk on its $238.5 million seven-year covenant-light term loan and $24 million delayed-draw term loan at Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source. The term loans are being sold pro rata.

The delayed-draw loan has a two year drawdown period and an undrawn fee of 1% in year one and 1.5% in year two, the source said.

Commitments are due on May 17.

Antares Capital is leading the $262.5 million of first-lien term loans that will be used to refinance existing debt and fund a distribution to existing shareholders.

Evans Network, a Calera Capital portfolio company, is a Schuylkill Haven, Pa.-based asset-light, tech-enabled service provider to operators in the logistics industry.

NorthStar discloses guidance

NorthStar Financial Services came out with price talk on its $290 million seven-year covenant-light first-lien term loan (B2/B+) and $115 million eight-year second-lien term loan (Caa2/CCC+) with its afternoon bank meeting, a market source remarked.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 0.75% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on May 17.

Antares Capital, Macquarie Capital (USA) Inc. and Citizens Bank are leading the $405 million in term loans that will be used to fund the acquisition of FTJ FundChoice LLC, a turnkey asset management firm, from Seaport Capital.

Closing is expected in the second quarter, subject to customary conditions.

NorthStar, a portfolio company of TA Associates, is a financial services company.

TerraForm comes to market

TerraForm Power launched in the morning a $349,125,000 senior secured term loan B (Ba1/BB+/ BB+) due Nov. 8, 2022 talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 10 a.m. ET on May 10, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 1% Libor floor.

TerraForm Power is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets.

Quest/One Identity on deck

Quest/One Identity is set to hold a lender call at noon ET on Friday to launch $1,795,000,000 in term loans, according to a market source.

The debt consists of a $1.42 billion seven-year first-lien term loan with a 0% Libor floor and 101 soft call protection for six months, and a $375 million eight-year second-lien term loan with a 0% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on May 15.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to finance the carve-out of the business from Seahawk Holdings.

Quest/One Identity is a provider of integrated infrastructure software and identity of governance.

GMS schedules call

GMS will hold a lender call at 11 a.m. ET on Monday to launch a $998 million seven-year first-lien term loan B, a market source remarked.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal, and Credit Suisse is the administrative agent.

The loan will be used to extend the maturity of an existing $573 million first-lien term loan B and the $425 million of incremental term loan B debt will be used to help fund the acquisition of WSB Titan, a Toronto-based gypsum specialty dealer, from current management and TorQuest Partners for about $627 million.

Closing is expected late in the second quarter, subject to the expiration or termination of the applicable waiting periods under the Canadian Competition Act and other customary conditions.

GMS is a Tucker, Ga.-based distributor of wallboard and suspended ceilings systems.

Hearthside sets meeting

Hearthside Food Solutions emerged with plans to hold a bank meeting at 1 p.m. ET in New York on Monday to launch its $1.27 billion of credit facilities that were previously labeled as May business, according to a market source.

The facilities consist of a $150 million revolver and a $1.12 billion senior secured first-lien term loan.

Goldman Sachs Bank USA, Barclays, Nomura, Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Charlesbank Capital Partners and Partners Group from Goldman Sachs and Vestar Capital Partners.

Hearthside is a Downers Grove, Ill.-based bakery, nutrition bar, snack and customized solutions contract manufacturer for packaged food products.

Power Products readies loan

Power Products scheduled a lender call for 3 p.m. ET on Monday to launch a fungible $90 million add-on covenant-light first-lien term loan that is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection through July 6, 2018, a market source said.

Spread and floor on the add-on term loan matches pricing on the existing $267 million term loan.

Commitments are due at 5 p.m. ET on May 14, the source added.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation.

Southwire timing emerges

Southwire will hold a lender call on Monday to launch its previously announced $500 million senior secured term loan (BB+) due 2025, a market source remarked. Prior to now, the deal was described as early-May business with a specific date to be determined.

KKR Capital Markets is the left lead on the loan that will be used to refinance existing debt.

Southwire is a Carrollton, Ga.-based manufacturer of wire and cable used in the distribution and transmission of electricity.

Keane coming soon

Keane Group set a lender call for 1 p.m. ET on Monday to launch a $350 million seven-year senior secured term loan, according to a market source.

Barclays is the left lead on the deal that will be used to repay the company’s existing term loan, for general corporate purposes, including to finance potential future shareholder distributions, and to pay related fees and expenses.

Kean Group is a Houston-based provider of integrated well completion services.

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