Townsquare Media breaks; Peabody Energy, ADT, Ferro revise deals; Arclin changes deadline

By Sara Rosenberg

New York, Feb. 7 – Townsquare Media Inc.’s first-lien term loan made its way into the secondary market on Tuesday, and the debt was seen trading above its issue price.

Over in the primary market, Peabody Energy Corp. tightened the spread and original issue discount on its first-lien term loan, and ADT Corp. modified the issue price and the call protection on its incremental term loan B.

Also, Ferro Corp. trimmed pricing on its U.S. term loan B, firmed the spread on its euro term loan B at the low end of guidance and tightened the original issue discount on both tranches, and Arclin accelerated the commitment deadline on first- and second-lien term loans.

In addition, Harland Clarke Holdings Corp. approached lenders with an extension of its term loan B-5 and an incremental term loan B-6, VIP Cinema, Restaurant Brands International Inc. and Infiltrator Water Technologies LLC revealed additional details on their loan transactions with launch.

Furthermore, Salient CRGT Inc., Cypress Semiconductor Corp., St. George’s University and PLZ Aeroscience Corp. surfaced with new deal plans.

Townsquare frees up

Townsquare Media’s $298.5 million first-lien term loan (Ba2/BB-) began trading on Tuesday, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 300 basis points with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets LLC is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

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

Peabody Energy flexes

Switching to the primary market, Peabody Energy lowered pricing on its $950 million five-year covenant-light first-lien senior secured term loan (Ba3) to Libor plus 450 bps from Libor plus 525 bps and adjusted the original issue discount to 99.5 from 98.5, according to a market source.

The term loan still has a 1% Libor floor, 101 hard call protection for one year and a ticking fee of half the margin from days 32 to 61, the full margin from days 62 to 121 and the full margin plus the floor thereafter.

Earlier in syndication, the term loan was upsized from $500 million.

Commitments were due at the close of business on Tuesday, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal.

Peabody refinancing

Proceeds from Peabody’s term loan, $1 billion in first-lien exit notes and $3.1 billion of total equity will be used to refinance existing debt in connection with the company’s exit from bankruptcy.

As a result of the recent first-lien term loan upsizing, the company terminated plans to get $450 million in second-lien notes from existing second-lien noteholders with its restructuring.

Closing is expected in early April.

Peabody is a St. Louis-based coal producer. The company filed bankruptcy on April 13, 2016 in the U.S. Bankruptcy Court for the Eastern District of Missouri, and the Chapter 11 case number is 16-42529.

ADT tweaks deal

ADT tightened the issue price on its fungible $800 million covenant-light incremental term loan (Ba3) due May 2, 2022 to par from 99.5 and changed the 101 soft call protection to expire on June 28 instead of in six months, according to a market source.

With the incremental loan, the security services company’s existing term loan B was expected to get its 101 soft call refreshed for the six month period, but will now keep the original June 28 expiration date for the call premium, the source said.

Pricing on the incremental term loan remained at Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing.

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

Barclays, Deutsche Bank Securities Inc., RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will fund distributions to the company’s equity holders and pay related fees and expenses.

Apollo is the sponsor.

Ferro changes surface

Ferro cut pricing on its $357.5 million seven-year covenant-light term loan B to Libor plus 250 bps from Libor plus 275 bps, set pricing on its €250 million seven-year covenant-light term loan B at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps talk, and revised the original issue discount on both tranches to 99.75 from 99.5, a market source said.

As before, the U.S. term loan has a 0.75% Libor floor, the euro term loan has no floor and all of the debt has 101 soft call protection for six months.

Recommitments for the U.S. loan were due at 3 p.m. ET on Tuesday, and recommitments for the euro loan are due on Wednesday morning, the source added. The deal is expected to price and allocate thereafter.

Deutsche Bank Securities Inc., PNC Bank, Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are leading the $625 million equivalent in total term loan debt (Ba3/BB-) that will refinance existing bank debt.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

Arclin moves deadline

Arclin accelerated the commitment deadline on its $465 million seven-year covenant-light first-lien term loan (B+) and $140 million eight-year covenant-light second-lien term loan (CCC+) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 900 bps to 925 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

The company’s $680 million credit facility also provides for a $75 million ABL revolver.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Lonestar.

Arclin is an Atlanta-based provider of surface overlay solutions and performance resins.

Harland Clarke launches

In more primary news, Harland Clarke launched in the morning a $760 million covenant-light first-lien term loan B-5 due December 2021 and a $325 million incremental covenant-light first-lien term loan B-6 due February 2022, according to a market source.

The term loan B-5 is talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection through June, and the incremental term loan B-6 is talked at Libor plus 550 bps with a 1% Libor floor, a discount of 99.25 to 99.5 and 101 soft call protection through August, the source said.

The spread, floor and call protection on the term loan B-5 and the incremental term loan B-6 are unchanged from the existing term loan B-5 and B-6.

Commitments are due at 5 p.m. ET on Feb. 14, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend an existing term loan B-5 from December 2019 and to refinance the company’s remaining term loan B-4 debt.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

VIP Cinema guidance

VIP Cinema held its bank meeting on Tuesday, and with the event, talk on its $165 million six-year first-lien term loan was announced at Libor plus 550 bps to 575 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.

Commitments are due on Feb. 22, the source said.

The company’s $230 million credit facility also includes a $20 million five-year revolver and a $45 million seven-year second-lien term loan that has been pre-placed with Oaktree Capital in the Strategic Credit fund at pricing of Libor plus 950 bps with a 1% Libor floor.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal.

The credit facility will be used to help fund the buyout of the company by H.I.G. Capital.

VIP Cinema is a New Albany, Miss.-based cinema seating company.

Restaurant details emerge

Restaurant Brands held its lender call, launching a $4.46 billion term loan B due February 2024 at talk of Libor plus 225 bps to 250 bps with a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to extend the existing term loan B from December 2021 and reprice the debt from Libor plus 275 bps with a 1% Libor floor.

As of Dec. 31, the term loan B totaled $5,046,000,000, but it is being paid down to $4.46 billion in connection with the amendment and extension transaction, the source added.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company.

Infiltrator sets OID talk

Infiltrator Water Technologies came out with original issue discount talk of 99.5 on its $100 million incremental covenant-light first-lien term loan (B2/B) that launched with a call in the morning, a market source said.

As previously reported, pricing on the incremental loan is Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 14, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing second-lien term loan.

Closing is expected on Feb. 22.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Salient CRGT on deck

Salient CRGT set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $455 million credit facility (B3/B), according to a market source.

The facility consists of a $35 million revolver and a $420 million five-year first-lien term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Feb. 22.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Regions Bank and RBC Capital Markets are leading the deal that will fund the acquisition of Information Innovators Inc. (Triple-i), which is expected to close this quarter, and refinance existing debt.

Salient CRGT is a Fairfax, Va.-based provider of agile based software systems development to federal government agencies. Information Innovators is a Springfield, Va.-based provider of solutions and services to IT and health-focused clients across the federal government.

Cypress joins calendar

Cypress Semiconductor will hold a lender call at 11 a.m. ET on Wednesday to launch a $1,073,750,000 senior secured credit facility, a source remarked.

The facility consists of a $540 million revolver, a $95 million term loan A and a $438,750,000 term loan B, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend the existing senior secured credit facility and reprice the term loan A due 2020 and term loan B due 2021.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

St. George’s coming soon

St. George’s University set a lender call for Wednesday to launch a $125 million add-on term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to fund a dividend and for general corporate purposes.

St. George’s is a Grenada, West Indies-based educational institution, providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

PLZ readies deal

PLZ Aeroscience scheduled a lender call for noon ET on Wednesday to launch a refinancing of its term loan, a market source said.

Antares Capital is leading the deal.

Further details on the transaction are not yet available, the source added.

PLZ Aeroscience is a manufacturer of specialty aerosol products.

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