Pilot Travel Centers breaks; Panda Hummel retranches, adjusts pricing; Talen Energy pulled

By Sara Rosenberg

New York, Oct. 23 – Pilot Travel Centers LLC’s repriced term loan B made its way into the secondary market on Friday, with levels quoted above its issue price.

Meanwhile, in the primary market, Panda Hummel downsized its funded term loan B, upsized its delayed-draw term loan and widened spreads and original issue discounts on the debt, Talen Energy Supply LLC withdrew its term loan B from market, and Truck Hero Inc. joined the near-term new issue calendar.

Pilot Travel frees up

Pilot Travel Centers’ repriced term loan B broke for trading on Friday, with levels quoted at 100¼ bid, 100 5/8 offered, according to a trader.

Pricing on the B loan is Libor plus 300 basis points with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Recently, the spread on the loan firmed at the low end of the Libor plus 300 bps to 325 bps talk.

This repricing is taking the term loan B down from Libor plus 325 bps with a 1% Libor floor.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc. and U.S. Bank NA are leading the deal.

With the repricing, lenders are getting a $500 million paydown on the term loan B that will be funded from revolver borrowings and cash on hand.

Pilot is a Knoxville, Tenn.-based operator of travel centers and travel plazas.

Panda Hummel modified

Moving to the primary market, Panda Hummel cut its funded seven-year term loan B to $340 million from $380 million, lifted its delayed-draw seven-year term loan to $120 million from $75 million, raised pricing on the tranches to Libor plus 600 bps from talk of Libor plus 550 bps to 575 bps and moved the original issue discount on the debt to 96 from 99, according to a market source.

As before, the term loans have a 1% Libor floor and are non-callable for three years, then at 102 in year four and 101 in year five.

Allocations are targeted for Monday, the source said.

Goldman Sachs Bank USA is leading the funded and delayed-draw loans.

Additionally, the company is getting a $250 million 6.5-year term loan A priced at Libor plus 375 bps with no Libor floor that is being led by ICBC and Investec.

Proceeds will be used to fund the development of the Panda Hummel power project, a 1,000 megawatt natural gas-fueled, combined-cycle power facility in Snyder County, Pa.

Talen Energy shelved

Talen Energy Supply removed its $400 million seven-year senior secured covenant-light term loan B from the market as a result of unfavorable conditions, a market source remarked.

Talk on the term loan had been Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Citigroup Global Markets Inc., MUFG, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays and RBC Capital Markets were leading the deal that was going to be used to help fund the acquisition of MACH Gen LLC for $1,175,000,000 inclusive of any assumed debt, subject to customary purchase price adjustments.

Talen is an Allentown, Pa.-based energy and power generation company. MACH Gen is an Athens, N.Y.-based operator of gas-fired generation plants.

Truck Hero readies deal

Truck Hero emerged with plans to hold a bank meeting on Tuesday to launch a $390 million seven-year term loan B that is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to help refinance the company’s existing first- and second-lien credit facility.

The refinancing is being done in connection with an initial public offering of common stock.

Truck Hero is an Ann Arbor, Mich.-based designer, manufacturer and marketer of branded consumer accessories for pickup trucks.

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