Multi-Color, Smart & Final deal revisions surface; Nexstar revises loan deadline

By Sara Rosenberg

New York, June 17 – In the primary market on Monday, Multi-Color Corp. moved some funds between its U.S. and euro term loans, set pricing on the U.S. tranche at the wide side of guidance and raised the spread on the euro piece.

Also, Smart & Final Grocery (Saffron Borrowco LLC) adjusted the size of its term loan B for a second time, and Nexstar Media Group Inc. accelerated the commitment deadline for its incremental term loan B.

Furthermore, Electronics For Imaging Inc., ERM, Heritage Power LLC and Golden Hippo (Altern Marketing LLC) disclosed price talk with launch, and Westinghouse Electric Co. (Brookfield WEC Holdings Inc.) emerged with new deal plans.

Multi-Color reworked

Multi-Color lifted its U.S. seven-year term loan to $640 million from $600 million and firmed the spread at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, a market source said.

In addition, the company trimmed its euro seven-year term loan to $560 million equivalent from $600 million equivalent and increased pricing to Euribor plus 500 bps from talk in the range of Euribor plus 425 bps to 450 bps, the source continued.

As before, both term loans have a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.5 billion equivalent of senior secured credit facilities (B2/B) also include a $300 million revolver.

Recommitments were due at 1 p.m. ET on Monday, the source added.

Multi-Color being acquired

Multi-Color will use its new credit facilities, $1.39 billion of notes and up to $500 million of equity to fund its buyout by Platinum Equity LLC for $50.00 in cash per share and merger with WS Packaging Group, a portfolio company of Platinum Equity. The transaction is valued at $2.5 billion, including the assumption of $1.5 billion of debt.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Houlihan Lokey and Morgan Stanley Senior Funding Inc. are the leads on the bank debt, with Bank of America left on the U.S. piece and Deutsche left on the euro piece.

Closing is expected by the third quarter, subject to Multi-Color shareholder approval, regulatory clearances and other customary conditions.

Multi-Color is a Cincinnati-based label maker. WS Packaging is a Green Bay, Wis.-based provider of labels and packaging solutions.

Smart & Final tweaked

Smart & Final modified its six-year covenant-lite term loan B (B3/B) to $340 million from a revised amount of $320 million and an initial size of $380 million, according to a market source.

The term loan is priced at Libor plus 675 bps with a 0% Libor floor and an original issue discount of 90, and has 101 hard call protection for two years.

Recommitments were due at 1 p.m. ET on Monday, the source said.

Previously in syndication, the spread on the term loan was increased from Libor plus 650 bps, the discount was changed from talk in the range of 97 to 98, the call protection was revised from a 101 soft call for one year, the maturity was shortened from seven years, amortization was increased, and documentation changes were made to MFN, incremental, indebtedness, restricted payments and cumulative credit, investments and EBITDA definition.

The company’s now $490 million of senior secured credit facilities also include a $150 million ABL revolver.

Smart & Final leads

Deutsche Bank Securities Inc., BMO Capital Markets Corp., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading Smart & Final’s credit facilities.

The new debt will be used to help fund the buyout of Smart & Final Stores Inc. by Apollo Global Management LLC.

Closing is expected by the third quarter, subject to more than 50% of the company’s shares being tendered, regulatory approvals and other customary conditions.

Smart & Final is a Commerce, Calif.-based food retailer operating smaller-box, warehouse-style club stores.

Nexstar moves deadline

Nexstar Media Group accelerated the commitment deadline for its $3.04 billion seven-year incremental term loan B to 11:30 a.m. ET on Wednesday from noon ET on Thursday, a market source said.

The incremental term loan B is talked at Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.

The company is also getting a $700 million incremental term loan A.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, SunTrust Robinson Humphrey Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Bank, Fifth Third, Goldman Sachs Bank USA, Mizuho, Regions Bank and Capital One are leading the loans (BB) that will be used with $1.12 billion of notes to fund the acquisition of Tribune Media Co. for $46.50 per share in a cash transaction that is valued at $6.4 billion, including the assumption of Tribune’s outstanding debt.

Closing is expected late in the third quarter, subject to regulatory approvals, approval by Tribune’s shareholders and other customary conditions. The transaction is not subject to any financing condition.

Nexstar is an Irving, Tex.-based diversified media company. Tribune is a Chicago-based owner of television and digital properties.

Electronics For Imaging talk

In more primary happenings, Electronics For Imaging held its bank meeting on Monday and disclosed price talk on its $875 million seven-year first-lien term loan (B2/B-) and $225 million eight-year second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 875 bps to 900 bps with a 0% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.2 billion of credit facilities also include a $100 million revolver (B2/B-).

Commitments are due at 5 p.m. ET on June 27, the source added.

RBC Capital Markets, KKR Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal, with RBC left on the first-lien loan and KKR left on the second-lien loan.

Electronics funding buyout

Electronics For Imaging will use its new credit facilities and up to $690 million of equity to fund its acquisition by Siris Capital Group LLC for $37.00 per share in cash. The transaction is valued at about $1.7 billion.

Closing is expected by the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

Electronics For Imaging is a Fremont, Calif.-based technology company focused on the transformation to digital imaging from analog.

ERM reveals guidance

ERM came out with talk of Libor/Euribor plus 400 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $500 million seven-year covenant-lite first-lien term loan B (B1/B) and $200 million equivalent euro seven-year covenant-lite first-lien term loan B (B1/B), a market source remarked.

A bank meeting for U.S. investors took place in New York on Monday and a meeting for European investors will take place in London on Tuesday.

Commitments are due at 5 p.m. ET on June 26.

The company is also getting a $175 million eight-year pre-placed covenant-lite second-lien term loan (Caa1/CCC+) that has a 0% Libor floor.

Citigroup Global Markets Inc. is the sole global coordinator and physical bookrunner on the deal. HSBC, ING, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal, which will be used to refinance existing credit facilities.

ERM is a provider of environmental, health, safety, and risk consulting and sustainability related services.

Heritage proposed terms

Heritage Power launched at its afternoon bank meeting its $550 million seven-year term loan B and $61.1 million seven-year term loan C at talk of Libor plus 475 bps with a 0% Libor floor and an original issue discount of 98.5, according to a market source.

The term loans, which are being sold as a strip, have 101 soft call protection for six months.

The company’s $656.1 million of credit facilities also include a $45 million five-year revolver.

Commitments are due at 4 p.m. ET on June 28, the source said.

Jefferies LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund commercial letters of credit, to repay existing debt, for general corporate purposes at the parent company, GenOn Holdings LLC, and to pay transaction related expenses.

Heritage is an owner of natural gas and oil-fueled power generation facilities.

Golden Hippo launches

Golden Hippo held its bank meeting during the session, launching its $250 million six-year first-lien term loan B at talk of Libor plus 850 bps with a step-down to Libor plus 800 bps at a leverage level to be announced, a 1% Libor floor and an original issue discount of 98, a market source said.

The term loan has hard call protection of 102 in year one and 101 in year two.

The company’s up to $275 million of credit facilities also include an up to $25 million asset-based revolver, the source said.

Commitments are due at noon ET on July 1, the source added.

Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the cash consideration to shareholders in connection with the company’s contemplated sale to an Employee Stock Ownership Plan and to pay related fees and expenses.

Total opco leverage is 2.7x.

Golden Hippo is a Woodland Hills, Calif.-based developer and distributor of branded health & wellness and beauty products.

Westinghouse on deck

Westinghouse set a lender call for 11 a.m. ET on Tuesday to launch a $325 million incremental first-lien term loan (B2/B/B) due August 2025 that is talked with an original issue discount of 99 to 99.5, according to a market source.

Like the existing roughly $2,723,000,000 first-lien term loan, the incremental loan is priced at Libor plus 350 bps with a 25 bps step-up at more than 4.65x total net leverage and a 0.75% Libor floor.

Commitments are due at 5 p.m. ET on June 26, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc., BMO Capital Markets, Barclays and Credit Agricole are leading the deal, which will be used to refinance an existing second-lien term loan.

Westinghouse is a Pittsburgh-based provider of technology and infrastructure services to a nuclear reactor fleet.

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