Anchor Glass, CPM hit secondary; Sky Betting flexes lower; StandardAero changes deadline

By Sara Rosenberg

New York, July 21 – Anchor Glass Container Corp.’s first-lien term loan broke for trading on Friday, with levels quoted above its issue price, and CPM Acquisition Corp. began trading as well.

Switching to the primary market, Sky Betting & Gaming trimmed spreads on its U.S. dollar and sterling term loans and revised original issue discount guidance, and StandardAero Aviation Holdings Inc. accelerated the commitment deadline on its incremental term loan.

Furthermore, Carestream Dental Equipment Inc. and ConvergeOne Holdings Corp. joined the near-term primary calendar.

Anchor Glass frees up

Anchor Glass Container’s $647 million first-lien term loan (B1/B) due Dec. 7, 2023 began trading on Friday, with levels quoted at par 1/8 bid on the break and then it moved up to par ¼ bid, par ¾ offered, according to market sources.

Pricing on the term loan is Libor plus 275 basis points with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 275 bps to 300 bps talk.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

CPM tops OIDs

CPM Acquisition’s term loan debt broke as well, with the $55 million incremental covenant-light first-lien term loan B due April 2022 quoted at par ½ bid, 101 offered and the $120 million covenant-light second-lien term loan due April 2023 quoted at 101 bid, 102 offered, a trader said.

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Pricing on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor, and it was issued at a discount of 99.5. This tranche has hard call protection of 103 in year one and 101 in year two.

During syndication, the incremental first-lien term loan B was upsized from $50 million and the second-lien term loan was upsized from $110 million.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the $175 million in senior secured term loans that will be used to repay existing debt, fund a dividend to shareholders, which was increased with the recent term loan upsizings, and to pay related fees.

Consenting first-lien term loan lenders were offered a 25 bps amendment fee.

Closing is expected in early August.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

Sky Betting tweaks deal

Moving to the primary market, Sky Betting & Gaming cut pricing on its U.S. seven-year term loan to Libor plus 350 bps from talk of Libor plus 375 bps and on its sterling seven-year term loan to Libor plus 425 bps from talk of Libor plus 450 bps, and adjusted original issue discount talk on both loans to a range of 99.5 to 99.75 from initial talk of just 99.5, a market source remarked.

The dollar and sterling term loans total £810 million equivalent, and it is expected that the dollar tranche will be at least $450 million, revised from prior talk of $300 million, the source continued.

The term loans still have a 0% Libor floor and 101 soft call protection for six months.

Sky Betting’s £845 million equivalent credit facilities (B2/B) also include a £35 million revolver.

Recommitments are due at the close of business on Monday, the source added.

Goldman Sachs Bank USA, Barclays and NatWest Markets are leading the deal that will be used to refinance an existing £340 million term loan B and to make a one-off distribution to shareholders.

Sky Betting, a CVC portfolio company, is an online betting and gaming company, operating predominately in the United Kingdom with recent expansion to Italy and Germany.

StandardAero moves deadline

StandardAero Aviation accelerated the commitment deadline on its $652 million incremental term loan to 3 p.m. ET on Tuesday from Thursday, according to a market source.

Consents for the company’s concurrent amendment continue to be due at 3 p.m. ET on Tuesday.

Jefferies LLC is the left lead on the deal.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.5.

Both the incremental and the existing term loan will get 101 soft call protection for six months.

Existing term loan lenders are being offered a 25 bps amendment fee.

The amendment and add-on term loan would permit the potential acquisition of Vector Aerospace Holdings SAS. StandardAero announced earlier this month that it entered into exclusive negotiations to acquire Vector Aerospace, an aerospace maintenance, repair and overhaul company, from Airbus SE.

The proposed transaction is subject to workers’ council consultation, signing of definitive agreements and customary approvals, such as regulatory clearances.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

Carestream Dental on deck

Carestream Dental Equipment scheduled a bank meeting for 2 p.m. ET in New York on Monday to launch $455 million of credit facilities (B2/B), a market source said.

The facilities consist of an $80 million revolver, and a $375 million seven-year covenant-light first-lien term loan that includes a 1% Libor floor and 101 soft call protection for six months, the source continued.

Commitments are due at 5 p.m. ET on Aug. 7.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and CareCapital Advisors Ltd. from Carestream.

Closing is expected in the third quarter, subject to regulatory and other approvals.

Carestream Dental is a provider of imaging systems, practice management software and other services to the dental market.

ConvergeOne readies loan

ConvergeOne set a lender call for 10 a.m. ET on Monday to launch a fungible $60 million incremental covenant-light term loan B (B2/B) due June 2024, according to a market source.

Like the existing term loan B, the incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection until June 2018.

Original issue discount talk on the incremental loan is 99.25, the source said.

Commitments are due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to fund a tuck-in acquisition and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

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