TerraForm Power, Pixelle term loans free to trade; R1 RCM deal updates emerge

By Sara Rosenberg

New York, May 11 – TerraForm Power’s first-lien term loan made its way into the secondary market on Wednesday, with levels quoted above its original issue discount, and Pixelle’s (Spectrum Group Buyer Inc.) first-lien term loan B broke as well.

Meanwhile, in the primary market, R1 RCM Inc. reduced the size of its term loan B, removed the CSA and firmed the original issue discount at the tight end of talk, and increased the size of its term loan A.

TerraForm breaks

TerraForm Power’s $500 million seven-year first-lien green term loan (Ba2/BB+/BB+) began trading on Wednesday, with levels quoted at 98 5/8 bid, 99 3/8 offered, according to a trader.

Pricing on the term loan is SOFR+10 basis points CSA plus 275 bps with a 0.5% floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the 275 bps to 300 bps talk.

RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Brookfield Asset Management is the sponsor.

TerraForm is a New York-based owner and operator of a renewable power portfolio including solar and wind assets.

Pixelle starts trading

Pixelle’s $507 million six-year first-lien term loan B freed to trade as well, with levels quoted at 98 bid, 99 offered, a market source remarked.

Pricing on the term loan is SOFR plus 650 bps with a 0.75% floor and it was sold at an original issue discount of 98. The debt has 101 hard call protection for one year.

During syndication, pricing on the term loan finalized at the high end of the SOFR plus 625 bps to 650 bps talk, the floor was revised from 0.5%, the call protection was changed from a 101 soft call for a year and the maturity was shortened from seven years.

The company’s $567 million of credit facilities (B1/B) also include a $60 million revolver.

Pixelle lead banks

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and KKR Capital Markets are leading Pixelle’s credit facilities.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital from Lindsay Goldberg.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Pixelle is a Spring Grove, Pa.-based manufacturer of fiber-based specialty products for label technology, food packaging, and other commercial and industrial end uses.

R1 RCM reworked

In other news, R1 RCM trimmed its seven-year senior secured term loan B (Ba2/B+/BBB-) to $500 million from $540 million as its term loan A was upsized by $40 million, eliminated the 10 bps CSA so there is no CSA, and firmed the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

Pricing on the term loan B remained at SOFR plus 300 bps with a 0.5% floor and the debt still has 101 soft call protection for six months.

Recommitments were due at 4:30 p.m. ET on Wednesday, the source added.

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Capital One, Wells Fargo Securities LLC, US Bank, KeyBanc Capital Markets, PNC, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and Fifth Third are leading the deal. BofA is the administrative agent.

The term loans will be used to help fund the acquisition of Cloudmed, an Atlanta-based provider of revenue intelligence solutions for health care providers, from New Mountain Capital.

R1 RCM, a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers, expects to close on the acquisition this quarter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.