Hornblower frees to trade; Innovative XCessories bid at OID; Kissner accelerates timing

By Sara Rosenberg

New York, Feb. 28 – Hornblower Holdings finalized the original issue discount on its incremental first-lien term loan at the middle of guidance and then broke for trading on Friday.

Also, Innovative XCessories & Services LLC (IXS Holding Inc.) was quoted in the secondary market in the morning following allocations late Thursday, and the debt was bid in line with its original issue discount price.

Furthermore, Kissner Group Holdings LP (SCIH Salt Holdings Inc.) moved up the commitment deadline for its first-lien term loan B.

Hornblower updated, breaks

Hornblower Holdings firmed the original issue discount on its fungible $25 million incremental first-lien term loan due April 2025 at 99.75, the midpoint of the 99.5 to par talk, according to a market source.

The incremental term loan is priced at Libor plus 450 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing.

During the session, the incremental first-lien term loan began trading and levels were quoted at par bid, par ¼ offered, the source added.

UBS Investment Bank is leading the deal that will be used to repay revolver borrowings.

Hornblower, a Crestview Partners portfolio company, is a San Francisco-based cruise and event company.

IXS levels emerge

Innovative XCessories & Services saw trading levels of 99 bid, par offered surface on Friday on its $620 million seven-year term loan (B2/B) after allocating late in the previous session, a market source remarked.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan finalized at the tight end of the Libor plus 500 bps to 525 bps talk.

The company’s $695 million of credit facilities also include a $75 million ABL revolver.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from Olympus Partners.

Closing is expected this quarter.

Innovative XCessories is a Windsor, Ont.-based provider of coating solutions and vehicle upfit services to the automotive aftermarket and diversified industrial end markets.

Kissner revises timing

Kissner Group accelerated the commitment deadline for its $900 million seven-year covenant-lite first-lien term loan B (B3/B) to noon ET on Tuesday from noon ET on Wednesday, a market source said.

Talk on the term loan is Libor plus 450 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down at 1x inside closing date first-lien net leverage, a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $1.225 billion of senior secured credit facilities also include a $125 million five-year revolver (B3/B) and a $200 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities, Inc., BMO Capital Markets, KKR Capital Markets and Citizens Bank are leading the deal that will be used to help fund the acquisition of Kissner by Stone Canyon Industries Holdings LLC from Metalmark Capital Holdings LLC and Silvertree-KMC II LP.

Kissner is an Overland Park, Kan.-based pure-play producer and supplier of salt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.