Tunnel Hill prices $275 million term loan B tighter than talk

New York, Oct. 1 – Tunnel Hill Partners LP set pricing for its $275 million seven-year covenant-light term loan B (B2/B) at levels tighter than talk, according to a market source.

Revised pricing is for a coupon of Libor plus 350 basis points with a step down to Libor plus 325 bps when secured net leverage is 3.5 times or less.

The loan was launched on Sept. 17 at Libor plus 350 bps to 375 bps.

Tunnel Hill also narrowed the original issue discount to 99.75 from 99.5.

The 0% Libor floor was left unchanged.

The ticking fee was set at zero for the first 30 days, at 50% of the spread over Libor for days 31 to 60, at 100% of the spread over Libor for days 61 to 120 and at Libor plus 100% of the spread for days 121 and subsequently.

There were also covenant changes.

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

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and Fifth Third are the lead arrangers on the deal.

Commitments were due at noon ET on Oct. 1, the source added.

Proceeds will be used to fund the acquisition of the company by Macquarie from American Infrastructure MLP Funds and other holders.

Tunnel Hill is a Jericho, N.Y.-based integrated waste-by-rail operator.

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