Telenet frees up following changes; Blue Ribbon reworks deal; Nexeo Solutions sets talk

By Sara Rosenberg

New York, May 5 – Telenet lowered pricing on its term loan B and tightened the original issue discount as a result of strong demand, and then the loan made its way into the secondary market on Thursday afternoon above the revised issue price.

In more happenings, Blue Ribbon LLC (Pabst) trimmed the spread on its incremental first-lien term loan and added a request to reprice its existing first-lien term loan, and Nexeo Solutions Holdings LLC came out with price talk on its term loan with launch.

Telenet flexes, breaks

Telenet trimmed pricing on its $850 million eight-year senior secured term loan B (B+) to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps and changed the original issue discount to 99.5 from 99, according to a market source.

The term loan B still has a 0.75% Libor floor and 101 soft call protection for six-months.

After terms finalized, the term loan freed up for trading on Thursday, and levels were quoted at par bid, 100¾ offered on the break, another source added.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are the physical bookrunners on the deal, and Societe Generale, ING and Scotiabank are the joint bookrunners, with Scotiabank the administrative agent.

Proceeds will be used by the Mechelen, Belgium-based cable operator to repay some bank debt, which will then result in the repayment of €300 million of senior secured notes due 2021 and €400 million of senior secured floating-rate notes due 2021.

Blue Ribbon revised

Blue Ribbon cut pricing on its fungible $135 million incremental first-lien term loan (B1) due Nov. 13, 2021 to Libor plus 400 bps from Libor plus 450 bps and is now asking lenders to reprice its existing first-lien term loan to Libor plus 400 bps from Libor plus 450 bps, a market source said.

The repricing of the existing term loan is offered at par, the source continued.

As before, all of the first-lien term loan debt has a 1% Libor floor and will get 101 soft call protection for six months, and the incremental term loan is offered at an original issue discount of 99.5.

Commitments were due by 3 p.m. ET on Thursday, the source added.

UBS Investment Bank is leading the transaction.

In connection with the incremental loan, the company is seeking certain amendments to its credit agreement, for which lenders continue to be offered a 5-bps consent fee.

Proceeds from the incremental term loan will be used by the Los Angeles-based brewing company to repay second-lien term loan debt.

Nexeo reveals talk

Nexeo Solutions held its bank meeting on Thursday morning, launching its $630 million seven-year covenant-light term loan (B3/B) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on May 17.

The company’s $1,205,000,000 credit facility also includes a $575 million ABL facility.

Bank of America Merrill Lynch, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of the company by WL Ross Holdings Corp. from TPG for up to 35 million shares of WL Ross common stock plus $1,296,000,000 in cash and assumed net debt for a total consideration of $1,646,000,000, assuming a $10.00 per share valuation for the shares of common stock.

As part of the transaction, TPG will roll over a substantial portion of its existing equity and retain about 35% ownership, and WL Ross will change its name to Nexeo Solutions Inc.

Pro forma leverage is 3.8 times.

Closing is expected in early June, subject to regulatory approvals and WL Ross stockholder approval.

Nexeo is a Houston-based distributor of chemicals and plastics and provider of environmental services.

Schumacher deadline emerges

Schumacher Clinical Partners set the commitment deadline for its fungible $130 million add-on covenant-light first-lien term loan for noon ET on Friday, a market source said.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that launched with a call on Thursday morning.

As previously reported, pricing on the add-on term loan is Libor plus 400 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the new debt is offered at an original issue discount of 99.

With this transaction, the add-on loan as well as the existing first-lien term loan will get 101 soft call protection for six months.

Proceeds will be used to help fund the acquisition of ECI Healthcare Partners Inc., a Traverse City, Mich.-based provider of health care solutions to physicians, urgent cares, outpatient practices and telemedicine programs.

Closing is expected by the end of this quarter, subject to customary conditions and regulatory approvals.

Schumacher is a Lafayette, La.-based provider of outsourced emergency and hospital medicine clinical staffing services.

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