Veregy, Park Place Technologies, Cambrex loan transactions free to trade

By Sara Rosenberg

New York, Nov. 2 – Veregy slightly trimmed its funded first-lien term loan size, widened the spread as well as the original issue discount, sweetened the call protection and eliminated plans for a delayed-draw term loan before freeing up for trading on Monday.

Other deals to make their way into the secondary market during the session included Park Place Technologies LLC and Cambrex Corp.

Veregy revised, breaks

Veregy cut its seven-year covenant-lite first-lien term loan to $248 million from $250 million, raised pricing to Libor plus 600 basis points from Libor plus 575 bps, changed the original issue discount to 97 from talk in the range of 98 to 98.5 and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor.

Also, the company removed from the capital structure a $50 million delayed-draw term loan available for 24 months.

The company’s now $290.5 million of credit facilities still include a $42.5 million revolver.

Recommitments were due at 1 p.m. ET on Monday and the term loan freed to trade late in the day, with levels quoted at 97˝ bid, 98˝ offered, another source added.

UBS Investment Bank and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital.

Veregy is a Phoenix-based provider of energy efficiency solutions, solar and smart building technology.

Park Place hits secondary

Park Place Technologies’ $845 million seven-year covenant-lite first-lien term loan (B2/B-) began trading as well, with levels quoted at 96 bid, 97 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 475 bps to 500 bps talk, the discount widened from 98 and the call protection was extended from six months.

The company’s $1.155 billion of credit facilities also include an $80 million revolver and a $230 million privately placed second-lien term loan (Caa2/CCC).

Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Curvature and refinance existing debt.

Park Place Technologies is a Cleveland-based third-party maintenance provider for data center storage, server and network hardware and tier-one OEM equipment.

Cambrex frees up

Cambrex’s incremental and repriced U.S term loan debt broke for trading too, with levels quoted at 99 5/8 bid, par 1/8 offered, a trader remarked.

The roughly $225 million U.S. incremental first-lien term loan (B2) and the repriced term loan are priced at Libor plus 450 bps with a 1% Libor floor.

The company is also getting a roughly €25 million incremental first-lien term loan (B2) and repriced euro term loan priced at Euribor plus 475 bps with a 0% floor.

For both the U.S. and euro debt, the incremental loans were sold at an original issue discount of 99.5 and existing lenders were offered a 25 bps consent fee on the existing debt.

All of the term loan debt has 101 soft call protection for six months.

At launch, the incremental term loan was described as $250 million equivalent U.S. and euro, with tranche sizes to be determined.

Cambrex lead

RBC Capital Markets is leading Cambrex’s loan transaction that allocated late Friday, but didn’t break until Monday morning.

The incremental term loan debt will be used to repay a second-lien term loan. The repricing will take the existing U.S. term loan down from Libor plus 500 bps with a 1% Libor floor and the existing euro term loan down from Euribor plus 525 bps with a 0% floor.

Pro forma for this transaction, the U.S. term loan totals $928.5 million and the euro term loan totals €175 million.

Closing is expected on Dec. 7.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

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