Calpine, IQ-EQ, One Toronto, Dun & Bradstreet, Odyssey break; Lackawanna, Citadel revised

By Sara Rosenberg

New York, July 20 – Calpine Construction Finance Co. LP increased the size of its term loan B, trimmed the spread and tightened the original issue discount, and IQ-EQ (Saphilux Sarl) finalized the original issue discount on its euro first-lien term loan B at the tight end of the most recent talk and then both of these deals freed to trade on Thursday.

Also, before breaking, One Toronto Gaming firmed the spread on its term loan B at the low end of guidance and tightened the issue price from initial talk, and Dun & Bradstreet Corp. set pricing on its first-lien term loan at the high end of guidance.

And, Odyssey Logistics & Technology Corp.’s first-lien term loan was another deal to make its way into the secondary market during the session.

In more happenings, Lackawanna Energy Center LLC downsized its term loan C and extended the call protection on the tranche as well as on the term loan B-2, and Citadel Securities reworked its transaction to a refinancing of both of its term loans from a repricing of its existing term loan B-1.

Furthermore, Fortress Investment Group FinCo I LLC released price talk on its term loan B in connection with its lender call, CoAdvantage (AQ Carver Buyer Inc.) disclosed pricing guidance on its term loan B, and Invenergy Thermal Operating I LLC joined the near-term primary calendar.

Calpine changes emerge

Calpine Construction Finance in the morning cut pricing on its seven-year covenant-lite term loan B (Ba2/BB+) to SOFR plus 225 basis points from talk in the range of SOFR plus 250 bps to 275 bps and adjusted the original issue discount to 99.25 from 99, and in the afternoon, the loan was upsized to $1.25 billion from $1 billion, according to a market source.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

Citigroup Global Markets Inc., BMO Capital Markets, BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Mizuho, MUFG, RBC Capital Markets, SMBC, Credit Suisse Securities (USA) LLC, ING and Morgan Stanley Senior Funding Inc. are leading the deal. Credit Suisse is the agent.

Calpine starts trading

With Calpine Construction’s size change, a recommitment deadline was set for 2 p.m. ET on Thursday, and the term loan B made its way into the secondary market later in the day, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

The new debt will be used to refinance the company’s existing $945 million senior secured term loan B and pay associated fees and expenses, and funds from the upsizing will repay a portion of Calpine Corp.’s term loan B-5 due December 2027.

Closing is expected in late July.

Calpine Construction is an owner and operator of power generation capacity.

IQ-EQ updated

IQ-EQ set the original issue discount on its €500 million first-lien term loan B (B3/B-) due July 2028 at 99, the tight end of the most recent talk of 98.75 to 99, and tighter than revised talk in the range of 98 to 98.5 and initial talk of 98, a market source remarked.

Pricing on the euro term loan is Euribor plus 475 bps with a 0% floor.

The company is also getting a $520 million first-lien term loan B (B3/B-) due July 2028 priced at SOFR plus 475 bps with a 25 bps step-down at 0.5x inside opening senior secured net leverage, with a six months ratchet holiday, a 0.5% floor, no CSA and an original issue discount of 98.5, and a £120 million privately placed term loan (B3/B-) due July 2028 priced at Sonia plus 550 bps with a 0% floor and an original issue discount of 98.75.

Earlier in syndication, the size of the U.S. term loan was set higher than the original talk of a minimum size of $500 million, pricing firmed at the low end of the SOFR plus 475 bps to 500 bps talk, the discount was revised from 98 and the ratchet holiday was added. Also, the size of the euro term loan finalized at the minimum €500 million talk at launch, and pricing firmed at the low end of the Euribor plus 475 bps to 500 bps talk.

In total, the company is getting €1.1 billion equivalent of first-lien term loan B, split between the U.S., euro and sterling term loans, which is unchanged from launch.

IQ-EQ hits secondary

IQ-EQ’s term loans broke for trading on Thursday, with the U.S. term loan quoted at 99 bid, 99½ offered before moving up to 99 1/8 bid, 99 5/8 offered, and the euro term loan quoted at 99¼ bid, 99¾ offered, traders added.

Nomura is the sole physical bookrunner on the U.S. term loan. Deutsche Bank Securities Inc., HSBC, NatWest and Nomura are the joint physical bookrunners on the euro term loan. Goldman Sachs, JPMorgan and Morgan Stanley are passive bookrunners. NatWest is the administrative agent.

The new debt will be used to amend and extend an existing €499 million term loan B due July 2025, an existing €100 million equivalent U.S. term loan B due July 2025 and an existing €268 million equivalent sterling term loan B due July 2025, to repay existing debt, including the partial repayment of existing U.S. and sterling second-lien term loans due July 2026, for general corporate purposes, for acquisition activity, and to pay transaction related fees and expenses.

Astorg Asset Management is the sponsor.

IQ-EQ is an investor services and independent fund specialist.

One Toronto tweaked, breaks

One Toronto Gaming finalized pricing on its $800 million seven-year term loan B (B2/B/BB+) at SOFR plus 425 bps, the low end of the SOFR plus 425 bps to 450 bps talk, and changed original issue discount talk to a range of 98.5 to 99 from a range of 97.5 to 98, before firming at 99 after the noon ET commitment deadline passed, according to market sources.

Also, some changes were made to documentation.

The term loan still has a 25 bps step-down at first-lien net covenant adjusted leverage of 2.25x, a 25 bps step-down upon completion of an initial public offering, a 0.5% floor and 101 soft call protection for six months.

In the afternoon, the term loan freed to trade, with levels quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Barclays is the left lead on the deal that will be used with $400 million of senior secured notes to refinance the company’s existing capital structure, to pay related fees and expenses and for general corporate purposes.

One Toronto Gaming, located in the greater Toronto area, is a gaming, entertainment and hospitality company.

Dun finalized, trades

Dun & Bradstreet set pricing on its roughly $2.666 billion first-lien term loan due Feb. 8, 2026 at SOFR plus 300 bps, the high end of the SOFR plus 275 bps to 300 bps talk, a market source said.

The term loan still has a 0% floor, CSA of 10 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate, a par issue price and 101 soft call protection for six months.

During the session, the term loan broke for trading, with levels quoted at par bid, par ¼ offered, another source added.

BofA Securities Inc. and RBC Capital Markets are leading the deal that will be used to reprice an existing roughly $2.666 billion term loan B.

Dun & Bradstreet is a Short Hills, N.J.-based provider of business decisioning data and analytics.

Odyssey frees up

Odyssey Logistics’ $501,011,456 first-lien term loan due Oct. 12, 2027 also began trading, with levels quoted at 98½ bid, 99¼ offered, according to a market source.

Pricing on the term loan is SOFR plus 450 bps with a 0.5% floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from SOFR plus 475 bps and the discount was modified from talk in the range of 96.5 to 97.5.

The company’s $626 million of credit facilities (B2/B) also include a $120 million revolver due July 2027.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, RBC Capital Markets, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to amend and extend the company’s existing first-lien credit facilities, while also increasing the revolver size from its current amount.

In conjunction with the extension, the company’s second-lien term loan will be paid down using cash on the balance sheet.

Odyssey is a Danbury, Conn.-based provider of multi-modal logistics services and technology solutions.

Lackawanna modified

Lackawanna Energy Center scaled back its six-year term loan C to $82 million from $95 million due to final letter of credit posting requirements, and extended the 101 soft call protection on the term loan C and on a $380 million six-year term loan B-2 to one year from six months, according to a market source.

Pricing on the term loan B-2 and term loan C, which were sold as a strip, finalized in line with talk at SOFR plus 500 bps with a 0.5% floor and an original issue discount of 97.

The company’s now $932 million of senior secured credit facilities (Ba3/BB-) also include a $120 million revolver, and a $350 million privately placed term loan B-1 priced at a fixed-rate of 9.5%. The term loan B-1 is non-callable for two years, then at 101 in year three.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, BNP Paribas Securities Corp. and MUFG are leading the deal.

The term loan B debt will be used to repay the existing debt of the company and the holding company, the term loan C will be used to fund a collateral account to cash collateralize the issuance of letters of credit, and the revolver will fund various short-term working capital requirements and repay an existing working capital loan.

Closing is expected during the week of July 31.

Lackawanna is a 1,483MW combined-cycle natural gas-fired power plant located in Jessup, Pa.

Citadel reworked

Citadel Securities changed its transaction to a $3.5 billion seven-year term loan for a refinancing of both of its term loans from a repricing of its $600 million term loan B-1 due February 2028, a market source remarked.

The new term loan is talked at SOFR+CSA plus 250 bps with a 0% floor, an original issue discount of 99 to 99.25 and 101 soft call protection for six months, the source said. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

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

JPMorgan Chase Bank is leading the deal, which will be used to refinance the existing $600 million term loan B-1 due February 2028 that is priced at SOFR+CSA plus 300 bps and an existing roughly $2.9 billion term loan B due February 2028 that is priced at SOFR+CSA plus 250 bps.

By comparison, when the company was seeking a repricing of the term loan B-1, the repriced term loan was talked at SOFR+CSA plus 250 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Citadel is a Chicago-based provider of market-making services to the fixed income, currency and commodity markets.

Fortress guidance

Fortress Investment Group held its lender call in the afternoon and announced price talk on its $800 million covenant-lite term loan B (Ba1/BB/BB) due June 2028 at SOFR plus 300 bps with a 0% floor and an original issue discount of 99, a market source said.

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

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend by three years an existing $700 million term loan B and to fund future acquisitions.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday, and commitments from new lenders are due at noon ET on July 31.

Fortress Investment is an alternative investment management firm.

CoAdvantage sets talk

CoAdvantage came out with price talk of SOFR+10 bps CSA plus 550 bps to 575 bps with a 1% floor and an original issue discount of 98 on its $550 million six-year term loan B (B2/B), a market source remarked.

The term loan has 101 hard call protection for one year.

Commitments are due at 5 p.m. ET on July 27.

The lender call for the term loan took place on Wednesday, but price talk wasn’t announced until Thursday as the company was waiting on a rating from Moody’s Investors Service.

Deutsche Bank Securities Inc., Antares Capital and Goldman Sachs Bank USA are leading the deal that will be used to refinance first- and second-lien debt and to pay a dividend.

CoAdvantage is a Tampa, Fla.-based professional employer organization and a provider of strategic human resource solutions.

Select Medical deadline

Select Medical Corp. is asking for commitments by 5 p.m. ET on Wednesday for its $2.103 billion term loan B due March 2027 that launched with a lender call at 1 p.m. ET on Thursday, according to a market source.

As previously reported, the term loan is talked at SOFR plus 300 bps with a 25 bps step-down at 4x net leverage, an original issue discount of 99 to 99.25 and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead and the administrative agent on the deal that will be used to amend and extend an existing $2.1 billion term loan B due March 2025.

Select Medical is a Mechanicsburg, Pa.-based operator of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics and occupational health centers.

Invenergy on deck

Invenergy emerged with plans to hold a lender call at 11 a.m. ET on Monday to launch $500 million of credit facilities, a market source said.

The facilities consist of a $150 million revolver, a $325 million term loan B and a $25 million term loan C, the source added.

MUFG, BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Invenergy is a Chicago-based developer, owner and operator of sustainable energy solutions.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.01%.

Month to date, the MiLLi is up 1.03% and year to date it is up 7.32%, and the LLLi is up 0.87% month to date and up 7.08% year to date.

Average secondary market bids in the U.S. on Wednesday were 92.16, up 0.01% from the previous day and up 0.3% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Nutrisystem’s April 2021 covenant-lite term loan at 84.13, up from 81.58, Jo-Ann Stores’ July 2021 covenant-lite term loan B at 50.67, up from 49.4, and LogMeIn’s August 2020 covenant-lite term loan B at 62.66, up from 61.9.

Some top decliners on Wednesday were Midwest Physician/DuPage Medical’s March 2021 covenant-lite term loan at 87.83, down from 90.56, Yak Mat’s February 2023 covenant-lite term loan at 88.25, down from 90, and AMC Entertainment’s April 2019 covenant-lite term loan B at 75.17, down from 76.43.

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