Chesapeake Raises Rate on $2 Billion Loan; NewPage Readies Deal

Chesapeake Energy Corp. increased the rate it will pay on $2 billion of loans and NewPage Corp., the Cerberus Capital Management LP-owned coated paper maker, set a meeting to discuss an $850 million financing to lead companies in the market for leveraged loans in the U.S. today.

Chesapeake boosted the discount at which it’s selling the debt to 98 cents on the dollar from 99 cents, increasing the yield for investors and reducing proceeds for the borrower, according to data compiled by Bloomberg. NewPage’s bankruptcy exit financing consists of a $500 million, six-year term loan and a $350 million, five-year asset-based revolving line of credit, Bloomberg data show.

Jefferies Group Inc. raised a $406.5 million collateralized loan obligation for Alcentra, according to two people with knowledge of the deal, who declined to be identified because the information is private. The JPMorgan Leveraged Loan Index, which tracks the largest dollar-denominated loans, rose 0.12 to 186.5 on Nov. 5.

Ardent Health Services LLC will meet with lenders on Nov. 8 at 10 a.m. in New York to discuss $1.02 billion of loans backing its acquisition of an 80 percent controlling interest in Baptist St. Anthony’s Health System in Amarillo, Texas, Bloomberg data show. The financing will consist of a $725 million, 5 1/2-year first-lien term loan, a $175 million, six-year second-lien term portion and a $120 million, five-year revolving line of credit, according to Bloomberg data.

Equinox Loan

Equinox Holdings Inc. will meet with lenders tomorrow at 1:30 p.m. in New York to discuss $800 million of loans the company is seeking to refinance debt. The deal will consist of a $500 million seven-year first-lien term loan, a $200 million 7 1/2-year second-lien term portion and a $100 million five-year revolving line of credit, according to Bloomberg data.

Bass Pro Group LLC, a sporting-goods retailer, is seeking a $900 million term loan B to refinance debt. JPMorgan Chase & Co. is arranging the seven-year deal for the Springfield, Missouri-based company and will host a lender call tomorrow at 1 p.m. in New York, according to Bloomberg data.

FleetPride Inc. set the rate it will pay on $625 million of loans it’s seeking to back its buyout by TPG Capital. A $425 million, seven-year first-lien term loan will pay interest at 3.75 percentage points more than the London interbank offered rate, according to Bloomberg data.

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