Citgo Holding, Phoenix Services hit secondary; PetSmart reveals pricing guidance with launch

By Sara Rosenberg

New York, Feb. 9 – Citgo Holding Inc. upsized its term loan B and then the debt made its way into the secondary market on Monday with levels quoted above its issue price, and Phoenix Services (Metal Services LLC) freed up for trading as well.

In more happenings, PetSmart Inc. released price talk with launch, and Healogics Inc., Panda Temple I and Par Pharmaceutical Cos. Inc. joined this week’s calendar.

Citgo’s lifted its 3¼-year senior secured first-lien term loan B to $1.3 billion from $1 billion and then broke for trading on Monday with levels quoted at 95 bid, 96 offered, according to a trader.

Pricing on the loan is Libor plus 850 basis points with a 1% Libor floor and it was sold at an original issue discount of 94. The debt is still non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the spread on the loan was raised from revised talk of Libor plus 825 bps and initial talk of Libor plus 800 bps, the discount widened from talk of 96 to 97, the maturity was shortened from five years, the excess cash flow sweep was increased, the debt service reserve was modified, the security package was enhanced, additional OpCo debt incurrence was limited to $500 million, and excess cash flow and asset sale paydowns were set at a premium of 101.

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