Xplornet Communications, HD Supply term loans free to trade above issue prices

By Sara Rosenberg

New York, Aug. 24 – Xplornet Communications Inc.’s term loan B made its way into the secondary market on Thursday, with levels quoted above its issue price.

Also, HD Supply Inc. finalized spreads and original issue discounts on its term loans B-3 and B-4 at the wide end of guidance, and then it too began trading.

Xplornet breaks

Xplornet’s $385 million term loan B began trading during the session, with levels quoted at par ¾ bid, 101½ offered, according to a market source.

Pricing on the term loan is Libor plus 475 basis points with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the term loan was reduced from talk of Libor plus 500 bps to 525 bps.

SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and Jefferies LLC are the leads on the deal.

Proceeds will be used to reprice an existing term loan B down from Libor plus 600 bps with a 1% Libor floor.

Xplornet is a Woodstock, New Brunswick-based rural-focused broadband service provider.

HD Supply updated, breaks

HD Supply firmed the spread on its $537 million covenant-light term loan B-3 due Aug. 13, 2021 at Libor plus 225 bps, the high end of the Libor plus 200 bps to 225 bps talk, and on its $547 million covenant-light term loan B-4 due Oct. 17, 2023 at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, a market source remarked.

Furthermore, the original issue discount on both term loans was set at 99.875, the wide end of the 99.875 to par talk, the source said, adding that both loans still have a 0% Libor floor and 101 soft call protection for six months.

With final terms in place, the B-3 and B-4 loans hit the secondary market at par bid, par 3/8 offered, another source added.

Bank of America Merrill Lynch is leading the $1,084,000,000 in term loans that will be used to reprice an existing term loan B-1 and an existing term loan B-2 from Libor plus 275 bps with a 0% Libor floor.

Closing is expected during the week of Aug. 28.

HD Supply is an Atlanta-based industrial distributor.

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