Accounts today received allocations of the $500 million incremental B term loan for SeaWorld Parks & Entertainment, which freed to trade at 99.25/99.5, versus issuance at 98.751, sources say. The add-on deal has the same August 2017 maturity as the existing loan, as well as the same pricing: L+300, with 1% LIBOR floor. A 101, one-year soft call premium will be added to the new and existing loans, sources said.
At 98.751 issuance, the loan is yielding about 4.35% to maturity, which narrows to 4.21% at the midpoint of the bid/ask on the break.
The offer price represents the wide end of original 98.75-99 guidance. The new debt is fungible with the existing term loan, sources noted.
As reported previously, Bank of America Merrill Lynch, Barclays Capital, Deutsche Bank, Goldman Sachs, J.P. Morgan, and Macquarie boosted the consent fee by 10 bps, to 25 bps, on the amendment that launched alongside the add-on loan. The amendment allows for the issuance of the incremental loan, proceeds of which would be used to support a dividend.
Standard & Poor’s and Moody’s cut SeaWorld’s corporate ratings to B+/B1, respectively, from BB-/Ba3, following the news of the debt-financed dividend. The loan is rated BB-/Ba3.
SeaWorld’s existing deal wrapped in February 2011. The B term loan, originally $900 million, was issued at par. The transaction was arranged by Bank of America Merrill Lynch, Barclays Capital, Deutsche Bank, and Mizuho. The financing also included a $150 million, five-year A term loan and a $172.5 million, five-year revolving credit, sources said.