Foresight, DS, Synagro, Vantage, Telx break; Fairmount, Revlon, Cincinnati Bell, Enven revised

By Sara Rosenberg

New York, Aug. 19 - Foresight Energy LLC's credit facility freed up for trading on Monday, with the term loan B quoted above its original issue discount price, and DS Waters of America Inc. (DS Services), Synagro Technologies Inc., Vantage Pipeline and Telx Group Inc. started trading too.

Moving to the primary, Fairmount Minerals Ltd. lifted the size of its term loan B-1 while trimming the size of its B-2 tranche, firmed pricing across the board at the low end of guidance and tightened the discount price on the B-2 loan.

Also, Revlon Consumer Products Corp. modified the original issue discount on its incremental term loan and accelerated the commitment deadline, Cincinnati Bell Inc. upsized its term loan B while also trimming the coupon and discount, and Enven Energy Ventures LLC downsized its term loan and flexed pricing higher.

Foresight hits secondary

Foresight Energy's credit facility broke for trading on Monday, with the $450 million seven-year covenant-light term loan B quoted at 99 1/8 bid, 99 7/8 offered, according to a market source.

Pricing on the term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, the term loan was downsized from $600 million and pricing was increased from talk of Libor plus 375 bps to 400 bps.

The company's senior secured credit facility also includes a $500 million five-year revolver that is priced at Libor plus 300 bps with no Libor floor.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are leading the deal.

Foresight refi, dividend

Proceeds from Foresight's credit facility will be used to fund a tender offer for its $600 million of 9 5/8% senior notes due 2017 and to finance a dividend payment.

Due to the earlier term loan downsizing, the company is no longer repaying its existing Longwall financing arrangements.

The company is also getting $600 million of 7 7/8% senior unsecured notes, upsized from $500 million, that priced last week at 99.276 to yield 8%.

The increased proceeds from the bond deal will fund a $100 million upsize to the dividend payment to $375 million from $275 million.

Foresight, a St. Louis-based producer of thermal coal, is expected to close on its new credit facility on Friday.

DS Waters breaks

Another deal to begin trading was DS Waters' credit facility, with the $320 million seven-year covenant-light first-lien term loan (Ba3/BB-) quoted at 99¾ bid, par ¼ offered by the end of the day, a source said.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Recently, the term loan was downsized from a revised amount of $360 million but upsized from an original amount of $310 million, and the soft call protection was extended from six months.

The company's $395 million senior secured credit facility also includes a $75 million ABL revolver.

Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and BMO Capital Markets are leading the deal.

DS Waters being acquired

Proceeds from DS Waters' credit facility, $350 million of bonds and $260 million of equity will fund its buyout by Crestview Partners.

The notes were downsized to $300 million upon the first term loan size change but then upsized to its original amount.

The extra $10 million raised through the final term loan amount will be used for fees and the original issue discount.

First-lien leverage is 2.1 times and total leverage is 4.3 times.

Closing is anticipated to occur on Aug. 30.

DS Waters is an Atlanta-based direct-to-consumer beverage services provider.

Synagro starts trading

Synagro's credit facility also made its way into the secondary market, with the $215 million seven-year term loan (B3/B+) quoted at 98 bid, 99 offered, a trader said.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at a discount of 98. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was lifted from talk of Libor plus 450 bps to 475 bps and the discount widened from 99.

The company's $280 million credit facility also includes a $65 million five-year revolver (B3).

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by EQT Infrastructure II, which will be done as part of Synagro's plan of reorganization under its bankruptcy case.

Synagro is a Houston-based recycler of biosolids and other organic residuals.

Vantage frees up

Vantage Pipeline's credit facility began trading too, with the $225 million term loan B seen at par bid, 101 offered, a trader remarked.

Pricing on the B loan is Libor plus 300 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. The debt has 101 soft call protection for one year.

Last week, pricing on the term B was reduced from Libor plus 350 bps and the discount was changed from 99.

Also included in the company's $240 million credit facility (Ba2/BB-) is a $15 million revolver.

RBC Capital Markets and TD Securities (USA) LLC are the lead banks on the deal.

Proceeds from the credit facility, along with equity from Riverstone Holdings, will be used to fund the construction of the Vantage Pipeline, a roughly 700 km long high vapor pressure pipeline carrying ethane from North Dakota to Canada.

Telx tops OID

Telx's $359,173,344 term loan B due Sept. 26, 2017 freed up as well, with levels quoted by one trader at par bid, par ¾ offered.

Pricing on the loan is Libor plus 400 bps with a 1.25% Libor floor and it was sold at an original issue discount of 993/4. Included in the debt is 101 soft call protection for one year.

Proceeds will be used to reprice the existing term loan B from Libor plus 500 bps with a 1.25% Libor floor and strip the maximum total leverage and minimum fixed charge coverage ratios from the debt.

In addition, the company sought a $20 million add-on to its revolver and is adding a springing total leverage ratio to the tranche.

Morgan Stanley Senior Funding, Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC are the lead banks on the deal that is expected to close on Oct. 10.

Telx is a New York-based provider of interconnection and co-location facilities.

Fairmount updates emerge

Switching to the primary, Fairmount Minerals increased its first-lien term loan B-1 due March 15, 2017 to $325 million from $250 million and set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, while keeping the plans for no Libor floor, an original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

Also, the six-year first-lien term loan B-2 was reduced to $885 million from $960 million, the spread came at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, the discount was revised to 99½ from 99 and the 101 soft call protection was shortened to six months from one year, the source remarked. This tranche still has a 1% Libor floor.

Lastly, pricing on the $75 million five-year revolver firmed at Libor plus 400 bps, the low side of the Libor plus 400 bps to 425 bps guidance, the source continued. There is still no Libor floor and an original issue discount of 99½ on this debt.

Fairmount funding acquisition

Proceeds from Fairmount's $1,285,000,000 senior secured credit facility (B1/BB-) will be used to help finance the purchase of nearly all of FTS International's sand mining operations, resin-coating plants and distribution terminals and to refinance an existing senior secured credit facility.

Closing is expected by the end of the third quarter.

Barclays, KeyBanc Capital Markets LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC are lead banks on the credit facility for which recommitments were due at 5 p.m. ET on Monday, the source added.

Senior secured leverage is 3.5 times and total leverage is 3.6 times.

Fairmount Minerals is a Chesterland, Ohio-based producer of industrial sand.

Revlon tweaks OID

Revlon changed the original issue discount on its $700 million incremental six-year senior secured term loan (B+) to 99¾ from 99½ and moved up the commitment deadline to 5 p.m. ET on Monday from Wednesday, according to a market source.

As before, the loan is priced at Libor plus 300 bps with a 1% floor, has 101 soft call protection for six months and a ticking fee of half the spread for days 31 to 60 and the full spread thereafter.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will help fund the $660 million acquisition of the Colomer Group, a beauty care company, from CVC Capital Partners.

Closing is expeted in the fourth quarter, subject to customary conditions and regulatory approvals.

Pro forma for the acquisition, net leverage is anticipated to be 4.8 times.

Revlon is a New York-based cosmetics and accessories company.

Cincinnati Bell reworked

Cincinnati Bell raised its seven-year term loan B to $540 million from $400 million, cut pricing to Libor plus 300 bps from the Libor plus 325 bps area and set the discount at 991/4, the middle of the 99 to 99½ talk, according to a market source.

Unchanged on the loan was the 1% Libor floor and 101 soft call protection for six months.

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

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the loan that will be used to repay a portion of the company's 8¼% senior notes due 2017 and for general corporate purposes.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions.

Enven changes surface

Enven Energy reduced its five-year second-lien term loan to $125 million from $150 million and lifted pricing to Libor plus 900 bps from Libor plus 800 bps, according to a market source.

The loan still has a 1.5% Libor floor and an original issue discount of 98, and is non-callable for one year then at 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to repay existing debt and preferred equity, and for general corporate purposes.

Enven is an exploration and production company in the Gulf of Mexico.

Bowie closes

In other news, Bowie Resources LLC completed its purchase of Canyon Fuel Co. LLC from Arch Coal Inc., a news release said.

For the transaction, Bowie Resources got a new $470 million credit facility that consists of a $35 million ABL revolver, a $335 million first-lien term loan B (B1/B+) and a $100 million second-lien term loan (Caa1/CCC+).

Pricing on the first-lien loan is Libor plus 575 bps with a 1% Libor floor and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 1,075 bps with a 1% Libor floor and was sold at a discount of 96. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Bowie lead banks

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. led the deal for Bowie Resources.

During syndication, pricing on the first-lien term loan firmed at the high end of revised talk of Libor plus 550 bps to 575 bps and up from initial talk of Libor plus 500 bps to 525 bps, and the discount was modified from 99.

Also, the second-lien loan was downsized from $121 million, the spread was increased from revised talk of Libor plus 950 bps to 975 bps and initial talk of Libor plus 875 bps to 900 bps, the discoutn widened from revised talk of 97 and initial talk of 98, and the call protection on the second-lien loan was sweetened from 103 in year one, 102 in year two and 101 in year three.

The funds lost from the second-lien term loan downsizing were replaced with $21 million of Caterpillar Lease Financing

Bowie Resources is a Louisville, Ky.-based coal company.

Multi Packaging buyout wraps

The acquisition of Multi Packaging Solutions Inc. by Madison Dearborn Partners from Irving Place Capital closed, according to a news release.

For the transaction, Multi Packaging got a new $330 million senior secured facility that consists of a $50 million five-year revolver and a $280 million seven-year covenant-light first-lien term loan B.

Pricing on the B loan is Libor plus 325 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, pricing on the term B was cut from talk of Libor plus 375 bps to 400 bps, the discount tightened from 99 and the foreign acquisition basket was changed to the greater of $100 million and 12% of total assets, from $75 million and 9.25% of total assets.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS Securities LLC led the deal.

With this transaction, Multi Packaging Solutions, a New York-based manufacturer of printed folding cartons, labels, and inserts, has senior secured leverage of 3.5 times and total leverage of 5.8 times.

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