RCN, American Airlines, Montreign, NFP, Asurion break; EFS, Wilsonart, Lightstone updated

By Sara Rosenberg

New York, Dec. 9 – RCN Grande’s (Radiate Holdco LLC) credit facility freed up for trading on Friday, with the first-lien term loan quoted above its original issue discount, and deals from American Airlines Inc. and Montreign Operating Co. LLC began trading too.

In more happenings, NFP Corp. upsized its term loan and Asurion LLC finalized the issue price on its term loan B-2 at the tight side of talk, and then these deals made their way into the secondary market as well.

Also, EFS Cogen Holdings I LLC (Linden Cogeneration Power Complex) set pricing on its term loan B at the low end of guidance, Wilsonart LLC tightened the spread and issue price on its term loan, and Lightstone Generation LLC widened pricing and original issue discount talk on its term loan B and funded letter-of-credit facility strip.

Furthermore, Charter Communications Inc. launched a repricing and extension of its term loan H and term loan I, and Tekni-Plex Inc. approached lenders with a tack-on first-lien term loan.

And, timing on the launch of Consolidated Communications Inc.’s incremental term loan B was announced, and Six Flags Entertainment Corp. and Halyard Health Inc. surfaced with repricing plans.

RCN Grande frees up

RCN Grande’s credit facility broke for trading on Friday, with the $1,425,000,000 seven-year covenant-light first-lien term loan quoted at 100¼ bid, 100½ offered, according to a market source.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% 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 spread from days 31 to 90 and the full spread thereafter.

On Thursday, the term loan was upsized from $1.33 billion as the company’s bond offering was downsized to $400 million from $495 million, and pricing was trimmed from Libor plus 350 bps.

The company’s $1,575,000,000 credit facility (B1/B) also includes a $150 million revolver.

RCN Grande merging

Proceeds from RCN Grande’s new debt will be used to help fund the acquisitions of RCN Telecom Services LLC for $1.6 billion and Grande Communications Networks LLC for $650 million by TPG Capital, Google Capital and Patriot Media Management from Abry Partners.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the credit facility.

Closing is expected in the first quarter of 2017, subject to customary conditions and regulatory approvals.

Upon completion, RCN and Grande will be combined into one broadband services provider.

American Airlines tops OID

American Airlines’ $1.25 billion seven-year senior secured term loan B (Ba1/BB+) freed to trade too, with levels quoted at 100¼ bid, 100 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $1 billion and the discount was revised from 99.5.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, ICBC and US Bank are leading the deal that will be used to repay a 2019 term loan and for general corporate purposes.

Closing is targeted for Thursday.

American Airlines is a Fort Worth-based airline company.

Montreign hits secondary

Montreign’s bank debt began trading as well, with the $390 million six-year first-lien term loan B quoted at 99½ bid, 100½ offered, according to a market source.

Pricing on the term loan B is Libor plus 825 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt is non-callable for 2.5 years, then at 102 for a year and 101 for a year.

During syndication, the term loan B was upsized from $375 million and pricing was set at the middle of the Libor plus 800 bps to 850 bps talk. Also, the company added a new $70 million five-year term loan A priced at Libor plus 500 bps with no Libor floor and an original issue discount of 98, downsized its equipment financing to $40 million from $70 million, upsized its total equity to $374 million from $358 million, and revised the collateral package to include both the Entertainment Village and golf course.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the development of the Montreign Resort Casino in the Hudson Valley region in New York.

Montreign Operating is a casino operator in the Hudson Valley.

NFP upsized, breaks

NFP raised its seven-year term loan to $1.16 billion from $1,125,000,000 and then the debt made its way into the secondary market with levels quoted at par bid, 100½ offered, according to market sources.

The term loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at first-lien net leverage of 3.75 times and a 1% Libor floor, and was sold at an original issue discount of 99.5. The debt includes 101 soft call protection for six months.

During syndication, pricing on the loan was lowered from talk of Libor plus 375 bps to 400 bps, the step-down was added and the free and clear carve-out was removed from MFN.

Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., UBS Investment Bank, KKR Capital Markets, Golub Capital and Jefferies Finance LLC are leading the deal that will be used to refinance and extend an existing term loan that is priced at Libor plus 350 bps with a 1% Libor floor.

NFP is an insurance broker and consultant.

Asurion firms price, trades

Asurion set the issue price on its $1.21 billion covenant-light term loan B-2 due July 2020 at par, the tight end of the 99.75 to par talk, and then the debt freed up for trading at 100¼ bid, 100¾ offered, sources said.

Pricing on the loan is Libor plus 325 bps with a 0.75% Libor floor, and the debt includes 101 soft call protection for six months.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance the existing term loan B-1 priced at Libor plus 375 bps with a 1.25% Libor floor and to reprice the existing term loan B-2 from Libor plus 350 bps with a 0.75% Libor floor.

Asurion is a Nashville-based provider of technology protection services.

EFS sets spread

EFS Cogen finalized pricing on its $1,018,692,351 senior secured first-lien term loan B due June 28, 2023 at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a source remarked.

Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor.

EFS Cogen is the owner of a natural gas-fired combined-cycle cogeneration project in New Jersey.

Wilsonart tweaks pricing

Wilsonart cut the spread on its $1.2 billion seven-year covenant-light term loan (B2/B+) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and moved the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Monday.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing term loans and fund a distribution to shareholders.

Wilsonart is a Temple, Texas-based engineered surfaces company.

Lightstone reworked

Lightstone Generation raised pricing on its $1,575,000,000 seven-year covenant-light term loan B and $150 million funded letter-of-credit facility (term loan C) strip to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps and modified original issue discount talk to a range of 97.5 to 98 from 99, according to a market source.

Furthermore, the 12-month MFN sunset was eliminated, the incremental unlimited amounts was revised to be subject to 3 times net leverage from 4.25 times net leverage and affirmed ratings, the excess cash flow sweep of 100% will be effective upon closing instead of in the first full fiscal year, and non-ordinary course asset sale proceeds have to be used to repay term loan borrowings with no reinvestment rights, the source said.

As before, the term loans have a 1% Libor floor.

The company’s $1,825,000,000 credit facility (Ba3/BB-) also includes a $100 million revolver.

Lightstone being acquired

Proceeds from Lightstone Generation’s credit facility will be used to support its buyout by Blackstone and ArcLight Capital Partners LLC from American Electric Power for about $2.17 billion.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, RBC Capital Markets, Goldman Sachs Bank USA and UBS Investment Bank are leading the debt.

Commitments are due at noon ET on Tuesday.

Closing on the buyout is expected in the first quarter of 2017, subject to regulatory approvals from the Federal Energy Regulatory Commission, the Indiana Utility Regulatory Commission and federal clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Lightstone Generation is a portfolio of four power generation facilities.

Charter comes to market

Also in the primary market, Charter Communications launched a repricing and extension of its $995 million term loan H and $2,786,000,000 term loan I, according to a market source.

Talk on the term loan H repricing is Libor plus 200 bps with no Libor floor and an original issue discount of 99.75, versus current pricing of Libor plus 250 bps with a 0.75% Libor floor, and the maturity will be extended to January 2022 from August 2021, the source said.

The term loan I repricing is talked at Libor plus 225 bps with no Libor floor and a discount of 99.5 to 99.75, versus current pricing of Libor plus 275 bps with a 0.75% Libor floor, and the loan will be extended by one year to January 2024.

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

Bank of America Merrill Lynch is leading the deal.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Tekni-Plex holds call

Tekni-Plex surfaced in the morning with plans to hold a lender call at 11:30 a.m. ET on Friday to launch a fungible $45 million tack-on first-lien term loan due June 2022, a market source said.

Pricing on the tack-on term loan is Libor plus 350 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the new debt is talked with an original issue discount of 99.5, the source added.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay a portion of the company’s existing second-lien term loan.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Consolidated Communications timing

Consolidated Communications set a lenders’ presentation for 1:30 p.m. ET on Monday to launch its previously announced $935 million incremental senior secured term loan B, a market source remarked.

According to the commitment letter, pricing on the incremental term loan is expected Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.

Morgan Stanley Senior Funding Inc., MUFG, TD Securities (USA) LLC and Mizuho Bank Ltd. are leading the deal that is being done in connection with the acquisition of FairPoint Communications Inc. in an all-stock merger, and will be used to refinance FairPoint debt and pay fees and expenses associated.

Pro forma for the transaction, net leverage is 3.8 times as of Sept. 30.

Closing is expected by mid-2017, subject to regulatory and shareholder approvals, and other conditions.

Consolidated Communications is a Mattoon, Ill.-based broadband and business communications provider. FairPoint is a Charlotte, N.C.-based provider of data, voice and video technologies.

Six Flags on deck

Six Flags Entertainment scheduled a lender call for Monday to launch a repricing of its $545 million term loan B that is talked at Libor plus 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on Dec. 16, the source added.

Wells Fargo Securities LLC is leading the deal that will reprice the term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

Halyard readies repricing

Halyard Health emerged with plans to hold a lender call at 11 a.m. ET on Monday to launch a repricing of its $339,025,000 senior secured first-lien term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal.

Current pricing on the term loan is Libor plus 325 bps with a 0.75% Libor floor.

Halyard Health is an Alpharetta, Ga.-based medical technology company focused on preventing infection, eliminating pain and speeding recovery.

LDiscovery closed

In other news, LDiscovery LLC, a portfolio company of Carlyle Group and Revolution Growth, completed its acquisition of Kroll Ontrack, a Minneapolis-based data recovery company, from Corporate Risk Holdings LLC, according to a news release.

To help fund the transaction, LDiscovery got a new $340 million six-year covenant-light first-lien term loan (B2/B+) and a $125 million seven-year covenant-light second-lien term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 587.5 bps with a 1% Libor floor, and it was sold at an original issue discount of 92. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 1,000 bps with a 1% Libor floor, and was issued at a discount of 96. This tranche has hard call protection of 103 in year one, 102 in year two and 101 in year three.

LDiscovery lead banks

RBC Capital Markets LLC, TD Securities (USA) LLC and Northwestern Mutual are leading LDiscovery’s $465 million of term loans.

During syndication, pricing on the first-lien term loan was increased from revised talk of Libor plus 575 bps and initial talk of Libor plus 550 bps, the discount widened from 99, the call protection was extended from six months, amortization was increased to 2.5% per annum for the first two years and 5% per annum thereafter, from 1% per annum, and the maturity was shortened from seven years.

Also during syndication, pricing on the second-lien term loan was raised from Libor plus 950 bps, the discount was revised from 98, the call protection was sweetened from 102 in year one and 101 in year two, and the maturity was shortened from eight years.

Other changes included removing the MFN sunset, increasing the excess cash flow sweep, reducing the incremental free and clear, reducing the total net leverage ratio governor for unlimited restricted payments, lowering the restricted payments cumulative credit starter basket and capping EBITDA add-backs for run-rate cost.

LDiscovery is a McLean, Va.-based technology-enabled eDiscovery services provider.

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