LegalShield breaks atop OID; RCN Grande sets spread; Pactiv reveals price guidance

By Sara Rosenberg

New York, Sept. 11 – LegalShield (Pre-Paid Legal Services Inc.) reduced the Libor floor on its incremental first-lien term loan and changed the original issue discount, and then the debt freed to trade on Friday afternoon.

In other news, RCN Grande (Radiate Holdco LLC) firmed the spread on its term loan B at the low end of revised guidance, Pactiv Evergreen released price talk on its term loan, and GCI LLC emerged with new deal plans.

LegalShield revised, trades

LegalShield modified the Libor floor on its non-fungible $135 million incremental first-lien term loan (B2) due May 1, 2025 to 0.75% from 1% and adjusted the original issue discount to 98.5 from 98, according to a market source.

As before, the term loan is priced at Libor plus 400 basis points and has 101 soft call protection for six months.

Commitments remained due at noon ET on Friday and the term loan broke for trading in the afternoon, with levels quoted at 99 bid, par offered, another source added.

RBC Capital Markets, Stone Point Capital Markets, Truist, KKR Capital Markets, BMO Capital Markets and Capital One are leading the deal that will be used with cash on hand to refinance an existing $180 million second-lien term loan due May 2026.

LegalShield is an Ada, Okla.-based provider of legal and identity theft protection plans. The company is owned by Stone Point Capital, Further Global Capital Management, MidOcean Partners and management.

RCN Grande updated

RCN Grande set pricing on its $2.69 billion term loan B due September 2026 at Libor plus 350 bps, the low end of revised talk of Libor plus 350 bps to 375 bps and down from initial talk of Libor plus 400 bps, a market source remarked.

The term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $1.19 billion, and the discount was modified from revised talk of 98.5 but ended up in line with the tight end of initial talk that was in the range of 98.5 to 99.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Societe Generale and UBS Investment Bank are leading the deal that will be used to repay existing debt and fund a dividend.

Other funds for the transaction will come from $1.75 billion of bonds, which were downsized from $3.25 billion with the recent term loan upsizing.

RCN Grande is a broadband services provider.

Pactiv discloses talk

Pactiv Evergreen held its lender call at 10 a.m. ET on Friday and, shortly before the event began, price talk on its $1 billion covenant-lite first-lien term loan due February 2026 was announced at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Pactiv, formerly known as Reynolds Group Holdings Inc., is a Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons.

GCI joins calendar

GCI set a lender call for 2 p.m. ET on Monday to launch a $350 million five-year term loan B, a market source said.

Truist Securities is leading the deal that will be used to refinance existing debt.

GCI is an Anchorage-based telecommunications company.

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