BlackBrush Oil & Gas breaks; Dave & Buster’s, Sinclair, Correct Care, Osmose tweak deals

By Sara Rosenberg

New York, July 21 – BlackBrush Oil & Gas’ (BBOG Borrower LP) second-lien term loan emerged in the secondary market on Monday, with levels quoted above its original issue discount.

Over in the primary, Dave & Buster’s Inc. trimmed pricing on its term loan B, added a leverage-based step-down and changed the original issue discount, and Sinclair Television Group Inc. set the spread on its loan at the wide end of talk while adjusting the offer price.

Also, Correct Care Solutions (CCS Intermediate Holdings LLC) reduced pricing on its first-lien term loan and modified the original issue discount, and Osmose Holdings Inc. upsized its term loan while tightening the spread and offer price.

In addition, iParadigms Holdings LLC moved up the commitment deadline on its credit facility, and Quorum Business Solutions and CCM Merger Inc. (MotorCity Casino Hotel) released price talk with launch.

Furthermore, Aircell Business Aviation Services LLC (Gogo) and Linn Energy LLC emerged with and launched new loans, Platform Specialty Products Corp. (MacDermid Inc.) disclosed timing and an updated structure on its deal, and Zest Holdings LLC joined this week’s calendar.

BlackBrush frees up

BlackBrush Oil & Gas’ $300 million seven-year second-lien term loan broke for trading on Monday, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 650 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99¼. There is call protection of 102 in year one and 101 in year two.

During syndication, the term loan was upsized from $275 million and the discount was modified from 99.

UBS AG, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Ares Management LP from EIG Management Co. LLC and Tailwater Capital LLC.

Closing is targeted for July 25.

BlackBrush is a San Antonio-based oil and gas exploration and development company.

Dave & Buster’s modified

Moving to the primary, Dave & Buster’s cut pricing on its $530 million six-year covenant-light term loan B to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, added a step-down to Libor plus 325 bps when net leverage is 2.75 times, revised the original issue discount to 99¾ from 99½ and eliminated the MFN sunset provision, a source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company’s $580 million credit facility (B2/B) also includes a $50 million five-year revolver.

Allocations are targeted for Wednesday, the source added.

Jefferies Finance LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Dave & Buster’s is a Dallas-based owner and operator of dining and entertainment venues.

Sinclair updates terms

Sinclair Television firmed pricing on its $400 million seven-year incremental covenant-light term loan B (Ba1/BB+) at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps talk, added a step-down to Libor plus 250 bps when first-lien net leverage is 1.75 times, and changed the original issue discount to 99¾ from 99½, according to a market source, who said the 0.75% Libor floor was left intact.

Earlier in syndication, the loan was downsized from $500 million as the Hunt Valley, Md.-based television broadcasting company’s senior notes offering was upsized to $550 million from $450 million.

Recommitments were due at 5 p.m. ET on Monday, the source continued.

RBC Capital Markets, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with the notes, cash on hand and/or a revolver draw to fund the purchase of Allbritton Communications’ television stations and for general corporate purposes.

Sinclair was also seeking an amendment to its existing term loan B to remove maintenance covenants; however, that request was terminated, the source added.

Correct Care cuts pricing

Correct Care Solutions trimmed the spread on its $335 million seven-year first-lien term loan (B1/B) to Libor plus 400 bps from Libor plus 425 bps and moved the original issue discount to 99½ from 99, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $385 million credit facility also includes a $50 million five-year revolver (B1/B).

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, GE Capital Markets, NXT and Ares are leading the deal that will be used to fund the merger of Correct Care Solutions with Correctional Healthcare Cos., a Denver-based provider of correctional health care solutions, and fund a dividend.

Also for the transaction, the Nashville, Tenn.-based provider of correctional health care is getting a $170 million second-lien term loan (Caa2/CCC+) led by Ares.

Osmose reworks deal

Osmose Holdings lifted its seven-year first-lien covenant-light term loan to $245 million from $235 million, reduced pricing to Libor plus 375 bps from Libor plus 400 bps and changed the original issue discount to 99¾ from 99, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $270 million credit facility (B2/B) also includes a $25 million revolver.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Osmose is a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management.

iParadigms shutting early

iParadigms accelerated the commitment deadline on its $356 million credit facility to 5 p.m. ET on Monday from 5 p.m. ET on Tuesday, a market source said.

The facility consists of a $16 million revolver, a $225 million seven-year first-lien covenant-light term loan and $115 million eight-year second-lien covenant-light term loan.

Talk on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Insight Venture Partners and GIC for $752 million.

iParadigms is an Oakland, Calif.-based provider of anti-plagiarism and online grading software.

Quorum sets talk

In more primary news, Quorum Business Solutions held its bank meeting on Monday, launching its $125 million seven-year term loan with talk of Libor plus 475 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.

The company’s $140 million senior secured credit facility also includes a $15 million revolver.

Commitments are due on July 28, the source said.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by Silver Lake Partners from the Carlyle Group and Riverstone Holdings.

Silver Lake and management rollover equity will comprise more than 60% of the capitalization.

Closing is expected following the satisfaction of customary conditions and approvals.

Quorum is a provider of software and services to manage operational, administrative, financial and transactional business processes for energy, renewables and natural resource industry segments.

CCM Merger guidance

CCM Merger came out with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $490 million seven-year senior secured term loan B (B+) that launched with a meeting during the session, a source said.

Commitments are due on July 29, the source added.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing senior credit facility debt.

CCM Merger is the operator of MotorCity Casino, a multi-story gaming, hotel, dining convention/conference and entertainment facility near downtown Detroit.

Aircell comes to market

Aircell Business Aviation Services launched a $75 million term loan B-2 due March 21, 2018 with talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable through Dec. 21, 2015, and then at 103 through Dec. 21, 2016, according to a market source.

Commitments are due on Friday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that is offered pro-rata to existing lenders and will be used for general corporate purposes.

Also, the company is looking to amend its existing $238 million term loan B to provide for the new term loan B-2, extend the maturity to March 21, 2018 and extend the non-call period to Dec. 21, 2015 with a 103 premium for one year thereafter.

Aircell is a Broomfield, Colo.-based provider of in-flight connectivity equipment and services to the business aviation market.

Linn Energy launches

Linn Energy launched a $1.3 billion one-year term loan to banks that is talked at Libor plus 300 bps with step-ups to Libor plus 350 bps after 180 days and an additional 25 bps per quarter thereafter, according to a market source.

Scotiabank, Barclays, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal.

Proceeds will be used to help fund the $2.3 billion acquisition of assets in five U.S. operating areas from Devon Energy Corp.

Also backing the transaction is a $1 billion unsecured bridge loan commitment.

The Houston-based acquirer and developer of oil and natural gas assets previously said that it plans to ultimately fund the acquisition with proceeds from the sale of its Granite Wash assets.

Closing is expected in the third quarter, with an effective date of April 1, subject to satisfactory completion of title and environmental due diligence and other conditions.

Platform Specialty on deck

Platform Specialty Products set a bank meeting for 9:30 a.m. ET in London on Tuesday to launch a $405 million equivalent incremental senior secured covenant-light first-lien term loan B due June 7, 2020, according to a market source, who said there will be no U.S. bank meeting, but U.S. investors will be able to dial in to the London bank meeting.

The term loan is split between $130 million fungible U.S. tranche and a $275 million euro equivalent tranche.

Filings with the Securities and Exchange Commission have said that expected term loan pricing is Libor plus 300 bps with a 25 bps step-down on or after Sept. 30, 2014 if the first-lien net leverage ratio is less than 3.25 times and the total net leverage ratio is less than 5.75 times. The debt is anticipated to have a 1% Libor floor, an original issue discount of 99 or better and 101 soft call protection for six months.

Official price talk is not yet out.

In addition to the incremental first-lien term loan, the company is looking to upsize its revolver due June 7, 2018 to $150 million from $50 million, the source continued.

Platform funding acquisition

Platform Specialty Products’ Barclays-led deal will be used with cash on hand to fund the acquisition of Chemtura AgroSolutions from Chemtura Corp. for about $1 billion, consisting of $950 million in cash plus 2 million shares of Platform's common stock.

The company was initially planning a $600 million incremental first-lien term loan and a $120 million covenant-light second-lien loan, but the first-lien amount was reduced and the second-lien loan commitment was cancelled because of an improved cash on hand position.

The second-lien term loan due Dec. 7, 2020 was expected at Libor plus 675 bps with a 1% Libor floor, an original issue discount of 98½ and call protection of 102 in year one and 101 in year two.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals, and pro forma net senior secured and total leverage is 3.8 times, the source added.

Platform is a Miami-based producer of high-technology specialty chemical products and provider of technical services. Chemtura AgroSolutions is a provider of agrochemicals and seed treatment products.

Zest readies call

Zest Holdings scheduled a call for 11:30 a.m. ET on Tuesday to launch a $160 million first-lien term loan B due August 2020 that is talked with a 1% Libor floor, according to a market source.

Commitments are due at noon ET on Aug. 1, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 550 bps with a 1% Libor floor.

Zest is an Escondido, Calif.-based manufacturer and distributor of overdenture attachment systems to the dental industry.

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