Goodyear second-lien term loan dips with repricing news; Salient downsizes, sets final terms

By Sara Rosenberg

New York, June 5 – Goodyear Tire & Rubber Co. saw its second-lien term loan soften in trading during Friday’s market hours following news that the company will be approaching lenders with a repricing proposal.

The second-lien term loan was quoted at 100 1/8 bid, 100½ offered, down from 100¾ bid, 101 offered, the trader said.

Under the proposal, Goodyear is looking to get a $1 billion covenant-light second-lien term loan due April 2019 that is talked at Libor plus 275 basis points to 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for one year, a source remarked.

The transaction would reprice the company’s existing second-lien term loan from Libor plus 375 bps with a 1% Libor floor.

Meanwhile, in the primary market, Salient Partners LP reduced the size of its term loan and finalized the spread at the wide end of revised guidance.

Salient trimmed its term loan to $100 million from $160 million and firmed pricing at Libor plus 650 bps, the high end of revised talk of Libor plus 600 bps to 650 bps and wide of initial talk of Libor plus 500 bps, according to a market source.

Also, Protection 1 (Apollo Security Services Borrower LLC) came out with timing, structure and price talk on its buyout deal, and StandardAero joined the near-term primary calendar.

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