Virgin Media, Lightstone Generation, Rackspace, West Corp., Calpine, Atkore, Aptean break

By Sara Rosenberg

New York, Dec. 15 – Virgin Media’s term loan I freed up for trading on Thursday above its original issue discount, and Lightstone Generation LLC, Rackspace Hosting Inc., West Corp., Calpine Corp. and Atkore International Inc. surfaced in the secondary as well.

Also, Aptean Inc. increased the size of its first-lien term loan, decreased the size of its second-lien term loan and widened second-lien pricing, and then it too broke for trading.

In other news, Novolex (Flex Acquisition Co. Inc.) and Flying Fortress Inc. lowered pricing on their term loan B’s, Charter Communications Inc. revised the original issue discounts on its term loans, and GlobalLogic Inc. upsized its term loan B, set the spread at the high end of talk and extended the call protection.

Furthermore, Equinix Inc. finalized pricing on its U.S. and sterling term loan B repricing transactions at the tight end of guidance, and Tekni-Plex Inc. lifted its fungible tack-on first-lien term loan size and tightened the issue price.

Virgin Media begins trading

Virgin Media’s $3.4 billion eight-year term loan I broke for trading on Thursday, with levels quoted at 100 3/8 bid, 100¾ offered, according to a market source.

Pricing on the term loan I is Libor plus 275 basis points with no Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan I was upsized from a revised amount of $3.1 billion and an initial size of a minimum of $750 million, pricing firmed at the low end of the Libor plus 275 bps to 300 bps talk, and the discount was revised from 99.5.

Citigroup Global Markets Inc. is the global coordinator on the deal and joint bookrunner with Barclays, Bank of America Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Scotiabank. Scotiabank is the administrative agent.

Virgin repaying debt

Proceeds from Virgin Media’s term loan I will be used to refinance a £100 million term loan D in full, to partially redeem the £990 million 6% senior secured notes due 2021, to redeem all of the $900 million 5 3/8% senior secured notes due 2021 and to fully refinance a $1,855,000,000 term loan F.

The addition of the term loan F refinancing and the decision to take out all, instead of some, of the U.S. notes was made because of the upsizings to the term loan I.

Closing is expected late this month.

Virgin Media, a subsidiary of Liberty Global plc, is a Hook, England-based provider of broadband, TV, mobile phone and home phone services.

Lightstone tops OID

Lightstone Generation’s strip of $1,575,000,000 seven-year covenant-light term loan B and $150 million funded letter-of-credit facility (term loan C) debt began trading, with levels quoted by one trader at par bid, 101 offered before moving up to 100½ bid, 101½ offered, and by a second trader at 100½ bid, 101 offered.

Pricing on the term loans is Libor plus 550 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 98. There is 101 soft call protection for six months.

During syndication, pricing on the term loans was increased from talk of Libor plus 475 bps to 500 bps, the discount firmed at the tight end of revised talk of 97.5 to 98 and wide of initial talk of 99, the 12-month MFN sunset was eliminated, the MFN was set to be applicable to all incremental pari debt, and the excess cash flow sweep of 100% was changed to be effective upon closing instead of in the first full fiscal year.

Also during syndication, the incremental unlimited amounts was revised to be subject to 3 times net leverage from 4.25 times net leverage, subject to ratings affirmation, non-ordinary course asset sale proceeds were outlined as required to repay term loan borrowings with no reinvestment rights, and quarterly calls were included in the credit agreement.

Lightstone funding buyout

Proceeds from Lightstone Generation’s $1,825,000,000 credit facility (Ba3/BB-), which also includes a $100 million revolver, will be used to financing its purchase 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.

Closing is expected in January, 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.

Rackspace frees up

Rackspace’s $2 billion senior secured covenant-light term loan B (Ba2/BB+/BB+) due Nov. 3, 2023 also started trading, with levels seen at 100½ bid, 101 offered and then it moved up to 100 5/8 bid, 101 1/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC and Apollo Global Securities are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor.

Closing is expected during the week of Dec. 19.

Rackspace is a San Antonio-based managed cloud company.

West hits secondary

West Corp.’s repriced $867.8 million term loan B-12 due 2023 and $259.4 million term loan B-14 due 2021 broke for trading too, with levels on both tranches quoted at 100¼ bid, 100 5/8 offered, a market source said.

The B-12 and B-14 loans are priced at Libor plus 250 bps with a 0.75% Libor floor and were issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice the B-12 loan from Libor plus 300 bps with a 0.75% Libor floor and the B-14 loan from Libor plus 275 bps with a 0.75% Libor floor.

West is an Omaha-based technology-driven communication services provider.

Calpine starts trading

Calpine’s repriced $546 million first-lien term loan B-6 due January 2023 and $561 million first-lien term loan B-7 due May 2023 emerged in the secondary as well, with levels on both tranches quoted at 100½ bid, 100¾ offered, according to a trader.

The term loan B-6 and term loan B-7 are priced at Libor plus 275 bps with no Libor floor, and were issued at par. The loans include 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas Securities Corp., Credit Agricole and Deutsche Bank Securities Inc. are leading the deal (Ba2/BB) that will reprice the existing term loan B-6 down from Libor plus 300 bps with a 1% Libor floor and the existing term loan B-7 down from Libor plus 300 bps with no Libor floor.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Atkore above par

Atkore International’s $500 million seven-year covenant-light first-lien term loan (B2/B+) broke for trading late in the day, with levels seen at 100 3/8 bid, 100 7/8 offered, a market source said.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 300 bps to 325 bps talk and the discount was modified from 99.5.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing first- and second-lien term loans.

Atkore is a Harvey Ill.-based Electrical Raceway and Mechanical Products & Solutions provider.

Aptean reworked

Aptean lifted its six-year covenant-light first-lien term loan B to $495 million from $470 million, decreased its seven-year covenant-light second-lien term loan to $165 million from $190 million, revised second-lien pricing to Libor plus 950 bps from Libor plus 900 bps and removed the MFN sunset and exceptions, according to a market source.

As before, the first-lien term loan is priced at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 and has 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $730 million senior secured credit facility also includes a $70 million five-year revolver priced at Libor plus 475 bps.

Aptean breaks

With final terms in place, Aptean’s credit facility freed to trade, with the first-lien term loan quoted at 99¾ bid, 100¾ offered, and the second-lien term loan quoted at 99½ bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., MUFG and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance the company’s existing credit facilities, distribute a dividend to the equity holders and pay related fees and expenses.

Closing is targeted for Tuesday.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

Novolex flexes lower

Back in the primary market, Novolex trimmed pricing on its $1,575,000,000 seven-year covenant-light term loan B to Libor plus 325 bps from talk of Libor plus 375 bps to 400 bps and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $1,875,000,000 credit facility (B1/B) also includes a $300 million revolver.

Commitments were due at 5 p.m. ET on Thursday and pricing is targeted for Friday, the source said.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the credit facility that will be used with $625 million in unsecured notes to help fund the buyout of the company by Carlyle Group from Wind Point Partners and TPG Growth.

Closing is expected before the end of the year.

Novolex is a Hartsville, S.C.-based packaging company.

Flying Fortress modified

Flying Fortress cut pricing on its $750 million term loan B (Baa3/BBB-) due October 2022 to Libor plus 225 bps from Libor plus 250 bps, and left the 0.75% Libor floor, original issue discount of 99.875 and 101 soft call protection for six months intact, a source remarked.

Recommitments are due at 10 a.m. ET on Friday, the source added.

RBC Capital Markets LLC and Bank of America Merrill Lynch are leading the deal that will be used to amend, extend and reprice an existing term loan B due April 2020 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Closing is targeted for the week of Dec. 19.

Flying Fortress is a subsidiary of AerCap, a Dublin-based aircraft leasing company.

Charter changes OIDs

Charter Communications tightened the original issue discount on its $995 million term loan H due January 2022 to 99.875 from 99.75 and on its $2,786,000,000 term loan I due January 2024 to 99.875 from talk of 99.5 to 99.75, according to a market source.

Pricing on the term loan H is still Libor plus 200 bps with no Libor floor, and pricing on the term loan I is still Libor plus 225 bps with no Libor floor, and both term loans have 101 soft call protection for six months.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan H from Libor plus 250 bps with a 0.75% Libor floor and extend the maturity from August 2021 and to reprice an existing term loan I from Libor plus 275 bps with a 0.75% Libor floor and extend the maturity by about one year.

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

GlobalLogic tweaks deal

GlobalLogic raised its term loan B to $310 million from $300 million, firmed pricing at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, extended the 101 soft call protection to one year from six months and removed the 18-month MFN sunset, a market source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance bank debt and some PIK notes.

GlobalLogic is a California-based provider of software R&D services.

Equinix updated

Equinix firmed pricing on its U.S. term loan B repricing at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and on its sterling term loan B repricing at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, a market source said.

The repriced U.S. term loan has no floor, the sterling repriced term loan has a 0.75% Libor floor, and both tranches have a par issue price and 101 soft call protection for six months.

As of Sept. 30, the company had $248.75 million outstanding under its U.S. term loan B and £298.5 million outstanding under its sterling term loan B.

The repricing will take the U.S. term loan B down from Libor plus 325 bps with a 0.75% Libor floor and the sterling term loan B down from Libor plus 375 bps with a 0.75% Libor floor.

Equinix new loan

Along with the repricings, the company is getting a new €1 billion euro seven-year covenant-light term loan B priced at Euribor plus 325 bps with no floor and a par issue price. This tranche has 101 soft call protection for six months as well.

Previously in syndication, the euro term loan was upsized from €500 million and the issue price was tightened from 99.75.

Bank of America Merrill Lynch is the left lead on the deal.

The company will use the new euro term loan to help fund the acquisition of a portfolio of 24 data center sites and their operations from Verizon Communications Inc. for $3.6 billion in an all cash transaction.

Closing on the acquisition is expected by mid-2017, subject to the customary conditions.

Equinix is a Redwood City, Calif.-based interconnection and data center company.

Tekni-Plex revised

Tekni-Plex upsized its fungible tack-on first-lien term loan (B) due June 2022 to $80 million from $45 million and moved the original issue discount to 99.75 from 99.5, according to a market source.

The tack-on term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with existing first-lien term loan pricing.

Recommitments are due at 10 a.m. ET on Friday, the source said.

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.

Cinemark closes

In other news, Cinemark USA Inc. closed on the repricing of its $664 million covenant-light term loan B due May 8, 2022, according to a news release.

Pricing on the term loan is Libor plus 225 bps with no Libor floor, and it was sold at an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

Barclays led the deal that was used to reprice the existing term loan from Libor plus 275 bps with no Libor floor.

Cinemark is a Plano, Texas-based motion picture exhibitor.

American Airlines wraps

American Airlines Inc. completed its $1.25 billion seven-year senior secured term loan B (Ba1/BB+), according to an 8-K filed with the Securities and Exchange Commission.

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.

During syndication, 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 led the deal that was used to repay a 2019 term loan and for general corporate purposes.

American Airlines is a Fort Worth-based airline company.

Axalta completes deal

Axalta Coating Systems closed on its $1,545,000,000 U.S. term loan B due February 2023 and €400 million term loan B due February 2023, the company disclosed in an 8-K filed with the Securities and Exchange Commission.

The U.S. term loan B is priced at Libor plus 250 bps with a 0.75% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

Pricing on the euro term loan B is Euribor plus 225 bps with a 0.75% Euribor floor and it was issued at par. This tranche has 101 soft call protection for six months as well.

During syndication, the U.S. term loan B was downsized from $1,775,000,000, and the issue price was tightened from talk of 99.5 to 99.75. The euro term loan B was upsized from €187 million, pricing was trimmed from Euribor plus 250 bps, and the issue price was changed from talk of 99.5 to 99.75.

Axalta lead banks

Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. led Axalta’s loan deal (Ba1/BBB-).

Proceeds were used with cash on hand to refinance $1,775,000,000 of term loans due 2020 priced at Libor plus 275 bps with a 1% Libor floor and €187 million of term loans due 2020 priced at Euribor plus 300 bps with a 1% Euribor floor, and to pay related transaction fees and expenses.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of coatings systems.

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