Cumulus Media, HydroChem free to trade; Ravago reworks loan; Connolly joins calendar

By Sara Rosenberg

New York, Dec. 20 - Cumulus Media Holdings Inc.'s credit facility made its way into the secondary market on Friday with term loan levels seen above its original issue discount price, and HydroChem (previously known as Aquilex Holdings) began trading as well.

Switching to the primary market, Ravago Holdings America lifted the size of its term loan and extended the call protection, and Connolly Holdings Inc. surfaced with new deal plans.

Cumulus breaks

Cumulus Media's credit facility freed up on Friday, with the $2,025,000,000 seven-year term loan quoted at 99¾ bid, par ¼ offered before moving up to par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor and it was issued at an original issue discount of 99.

During syndication, pricing firmed at the low end of the Libor plus 325 bps to 350 bps talk and the discount widened from 991/2.

The company's $2,225,000,000 credit facility (B1/B+) also includes a $200 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing bank debt.

Cumulus is an Atlanta-based radio broadcaster.

Hydrochem tops par

HydroChem's credit facility freed up in the morning, with the $250 million seven-year term loan B quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the B loan is Libor plus 400 bps with a step-down to Libor plus 375 bps based on leverage. There is a 1% Libor floor and 101 soft call protection, and the debt was issued at 993/4.

During syndication, the spread on the B loan firmed at the tight end of the Libor plus 400 basis bps to 425 bps talk, the step-down was added and the discount was tightened from 991/2.

The company's $300 million senior credit facility (B2/B) also includes a $50 million six-year revolver priced at Libor plus 400 bps with no floor. This tranche also saw its spread come at the low end of the Libor plus 400 bps to 425 bps talk.

GE Capital Markets is leading the deal that will refinance debt and fund the acquisition of Inland Industrial Services Group LLC, an industrial cleaning company, from Strength Capital Partners LLC.

HydroChem, a provider of industrial cleaning solutions for the petrochemical production, oil refining, power generation, metals and pulp and paper industries, expects to close on the transaction by year-end.

Ravago tweaks deal

Over in the primary, Ravago increased its term loan to $300 million from $250 million and pushed out the 101 soft call protection to one year from six months, according to a market source.

As before, pricing on the loan is Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.

Wells Fargo Securities LLC is leading the deal that allocated on Thursday.

Proceeds will be used to refinance existing debt.

Ravago is a provider of distribution, resale, compounding and recycling service for plastic and elastomeric raw materials.

Connolly on deck

Connolly Holdings emerged with plans to hold a bank meeting on Jan. 8 to launch a new credit facility, according to a market source.

RBC Capital Markets LLC is the left lead on the deal that will be used to refinance existing bank debt.

Connolly is an Atlanta-based provider of technology-enabled recovery audit services.

© 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.