Coyote breaks; Walgreens Infusion changes surface; Townsquare upsizes, shutting early

By Sara Rosenberg

New York, March 24 – Coyote Logistics LLC saw its term loan make its way into the secondary market on Tuesday with levels quoted above its original issue discount.

Switching to the primary, Walgreens Infusion Services modified the original issue discount on its oversubscribed term loan B and added a leverage-based pricing step-down, and Townsquare Media Inc. increased the size of its term loan and accelerated the commitment deadline.

Additionally, Natel EMS and SeaWorld Entertainment Inc. released price talk with launch, and Top Right Group (Eden Bidco Ltd.) surfaced with new deal plans.

Coyote frees up

Coyote Logistics’ $360 million seven-year term loan (B2/B-) began trading on Tuesday with levels seen at 99½ bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 525 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, the spread on the loan was reduced from Libor plus 550 bps, the discount was set at the tight end of the 98½ to 99 talk and the call protection was extended from six months.

Goldman Sachs Bank USA, Wells Fargo Securities LLC and ING Capital Markets are leading the deal that will be used to help refinance existing debt and fund a dividend.

Coyote Logistics is a Chicago-based freight broker.

Walgreens Infusion updated

Over in the primary market, Walgreens Infusion Services changed the original issue discount on its $415 million seven-year term loan B to 99½ from 99 and added a pricing step-down to Libor plus 475 bps at 3.5 times first-lien leverage, according to a market source.

As before, the term loan is initially priced at Libor plus 500 bps and has a 1% Libor floor as well as 101 soft call protection for one year.

The company’s $495 million credit facility (B2/B) also includes an $80 million revolver.

Commitments were due at 5 p.m. ET on Tuesday, the source remarked.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with $150 million of second-lien debt placed with Goldman Sachs Mezzanine and equity to fund the buyout of the company by Madison Dearborn Partners from Walgreen Co.

Closing is expected in the second quarter, subject to regulatory approvals and other conditions.

Walgreens Infusion Services is a provider of home and alternate treatment site infusion services.

Townsquare tweaks deal

Townsquare Media upsized its seven-year term loan B to $275 million from $255 million and accelerated the commitment deadline to noon ET on Wednesday from Monday, a market source said.

The company’s now $325 million senior secured credit facility (Ba2/BB-), up from $305 million, also includes a $50 million five-year revolver.

Talk on the B loan is Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and Jefferies Finance LLC are leading the deal that will be used to help refinance the company’s existing senior secured credit facility and $410.9 million of 9% senior notes due 2019.

Other funds for the refinancing will come from a $300 million senior notes offering that was downsized from $320 million.

Townsquare Media is a Greenwich, Conn.-based media and entertainment and digital marketing services company.

Natel EMS reveals talk

Also on the new deal front, Natel EMS held its bank meeting on Tuesday afternoon, launching its $280 million five-year term loan with talk of Libor plus 575 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two, according to a market source.

Commitments are due on April 7, the source said.

Goldman Sachs Bank USA and GE Capital Markets are leading the deal that will be used to help fund the acquisition of OnCore Manufacturing from Charlesbank.

Leverage is 2.6 times.

Natel is a Chatsworth, Calif.-based manufacturer of electronic components. OnCore Manufacturing is a Springfield, Mass.-based provider of high-complexity electronics manufacturing services.

SeaWorld holds call

SeaWorld hosted a lender call on Tuesday to launch a $280 million incremental term loan B-3 (BB) that will be used to refinance existing senior notes due 2016, according to a market source.

Talk on the B-3 loan is Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Friday.

Bank of America Merrill Lynch is the left lead on the deal.

SeaWorld is an Orlando, Fla.-based theme park operator.

Top Right coming soon

Top Right Group set a bank meeting in London for Wednesday and one in New York for 10 a.m. ET on Thursday to launch a new multi-currency credit facility (B2), according to a market source.

The facility consists of a £75 million six-year revolver, a $325 million seven-year covenant-light term loan B and a €305 million seven-year covenant-light term loan B, the source said, adding that the term debt has a 1% floor and 101 soft call protection for six months.

Commitments are due on April 8.

Deutsche Bank Securities Inc., HSBC Securities, Lloyds Securities LLC and BNP Paribas Securities Corp. are leading the deal that will be used to refinance all existing senior and mezzanine facilities and for general corporate purposes.

Top Right is a London-based B2B media company, operating market-leading events and providing information services and subscription content.

Headwaters closes

In other news, Headwaters Inc. completed its $425 million seven-year covenant-light term loan B (B1/BB-), a news release said.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. The debt has 101 soft call protection for six months.

During syndication, the spread on the loan was reduced from the Libor plus 400 bps area and the discount was revised from 99.

Deutsche Bank Securities Inc. led the deal that was used to refinance 7 5/8% senior secured notes.

Headwaters is a South Jordan, Utah-based manufacturer of light building products and heavy construction materials.

C&J Energy wraps

C&J Energy Services Inc. closed on its combination with Nabors Industries’ completion and production services business, according to a news release.

To fund the transaction, the company got a new $1.66 billion senior secured credit facility (Ba3/BB+) consisting of a $600 million revolver, a $575 million five-year term loan B-1 and a $485 million seven-year covenant-light term loan B-2.

Pricing on the term loan B-1 is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 86. There is call protection of 104 in year one and par thereafter.

The B-2 loan is priced at Libor plus 625 bps with a 1% Libor floor, and was issued at 84. This tranche has call protection of 105 in years one and two, and par thereafter.

C&J lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC led C&J Energy’s credit facility.

During syndication, the term loan B-1 was upsized from $510 million and the discount firmed at the wide end of revised talk of 86 to 87 and wide of initial talk of 90, and the term loan B-2 was downsized from $550 million, the discount finalized at the wide end of revised talk of 84 to 85 and wide of talk of 88, and the call protection on the B-2 tranche was revised from 105 in year one and 103 in year two,

Also, during syndication, an excess cash flow sweep of 50% when leverage exceeds 3.25 times was established, and MFN protection was described as any amendment or modification that increases pricing on the term loan B-1 cannot increase the yield differential between the term loan B-1 and the term loan B-2 by more than 50 bps unless the yield differential above 50 bps is also added to the term loan B-2.

C&J Energy is a Houston-based provider of hydraulic fracturing, coiled tubing, cased-hole wireline, pumpdown and other oilfield services.

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