PSC Industrial, Parq Resort hit secondary; RentPath revisions surface; C&J syndication on hold

By Sara Rosenberg

New York, Dec. 5 – PSC Industrial Services’ credit facility began trading on Friday morning with both the first- and the second-lien term loans quoted above their original issue discounts, and Parq Resort & Casino (Parq Ltd. Holdings Partnership) broke, too.

Moving to the primary, RentPath Inc. shifted some funds to its first-lien term loan from its second-lien term loan, increased spreads and sweetened call protection on both tranches and widened the offer price on the second-lien debt.

Also, C&J Energy Services Inc. withdrew its credit facility from syndication, and AmWINS Group Inc. surfaced with new deal plans.

PSC frees up

PSC Industrial Services’ credit facility emerged in the secondary market on Friday with the $180 million six-year first-lien term loan (B1/B+) quoted at 99¼ bid, par ¼ offered and the $45 million seven-year second-lien term loan (Caa1/CCC+) quoted at 98½ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The spread firmed at the wide end of the Libor plus 450 bps to 475 bps talk and a step-down to Libor plus 450 bps was added when first-lien leverage is below 3.5 times, a source said. The loan includes 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps after finalizing at the tight end of the Libor plus 825 bps to 850 bps talk, the source continued. The second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, and was issued at a discount of 98.

PSC upsizes revolver

PSC Industrial’s credit facility also provides for a five-year revolver (B1/B+) that was increased to $45 million from $40 million, the source remarked.

BNP Paribas Securities Corp. is leading the now $270 million deal that will be used to help fund the buyout of the company by Littlejohn & Co.

First-lien leverage is less than 4 times, and total leverage is less than 5 times.

PSC is a Houston-based industrial services company that offers hydroblasting, vacuuming, grit-blasting, explosive deslagging, chemical cleaning, process dewatering and routine maintenance.

Parq starts trading

Parq Resort’s $265 million of six-year senior secured term loan debt freed up too, with levels quoted at 98¼ bid, 98¾ offered, a source remarked.

Pricing on the debt, which includes a $220 million funded tranche and a $45 million delayed-draw tranche, is Libor plus 750 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt is non-callable for 2½ years, then at 101 for a year, and the delayed-draw loan has a ticking fee of half the spread.

During syndication, the funded term loan was upsized from $130 million, pricing on all of the term debt was raised from revised talk of Libor plus 675 bps, but, came at the wide end of initial talk of Libor plus 700 bps to 750 bps, and the discount was changed from revised talk of 98½ but ended up in line with initial talk of 98.

Along with the term debt, Parq was planning to issue $200 million of bonds, but with the upsizing to the funded term loan, the bond offering was withdrawn.

Credit Suisse Securities (USA) LLC and Dundee Securities are leading the deal that will be used to help fund the construction of the Parq resort and casino in Vancouver.

RentPath restructures

Over in the primary, RentPath lifted its seven-year first-lien term loan to $505 million from $475 million, raised pricing to Libor plus 525 bps from Libor plus 475 bps and extended the 101 soft call protection to one year from six months, while keeping the 1% Libor floor and original issue discount of 99 intact, according to a market source.

Meanwhile, the eight-year second-lien term loan was trimmed to $170 million from $200 million, pricing was flexed to Libor plus 900 bps from Libor plus 850 bps, the discount was moved to 96 from 98, and the call protection was modified to non-callable for one year, then at 103 in year two and 101.5 in year three from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

Some other revisions made were increasing the excess cash flow sweep on the first-lien term loan to 75% with step-downs, changing the 50 bps MFN provision to apply for life and to the entire incremental facility, and reducing the incremental free and clear basket to $75 million from $100 million and the applicable first-lien net leverage ratio threshold to 4.25 times, the secured net leverage ratio threshold to 6.25 times and the total net leverage threshold to 6.50 times, the source continued.

RentPath leads

RBC Capital Markets Inc., UBS AG, Nomura and Macquarie Capital (USA) Inc. are leading RentPath’s $725 million credit facility, which also includes a $50 million five-year revolver (B1/B+).

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

First-lien leverage is 4.4 times based on 2014 estimated EBITDA.

Proceeds will be used to help fund Providence Equity Partners’ purchase of a stake in the company from TPG and to refinance existing debt. At closings, Providence and TPG will own equal shares of the company, with management continuing to also have a stake.

Closing is expected around mid-December.

RentPath is a Norcross, Ga.-based vertical search company for apartment and home renters.

C&J postponed

C&J Energy, a Houston-based provider of oilfield services, opted to pull its $1.25 billion credit facility from the primary for the time being because of market conditions, a market source said.

The deal consisted of a $600 million revolver, and a $650 million five-year senior secured term loan B talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Last month, the term debt was restructured from a $300 million five-year term loan B-1 talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $375 million seven-year covenant-light term loan B-2 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC were leading the deal that was going to fund the company’s combination with Nabors Industries Ltd.’s completion and production services business.

AmWINS on deck

AmWINS set a conference call for 2 p.m. ET on Monday to launch $340 million of new term loan debt and an upward repricing of its existing $876 million first-lien term loan, according to a market source.

The new debt consists of a $90 million first-lien covenant-light tack-on delayed-draw term loan due Sept. 6, 2019 talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $250 million second-lien covenant-light term loan due Sept. 6, 2020 talked at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

As for the existing first-lien term loan, pricing will be lifted to Libor plus 425 bps from current pricing of Libor plus 375 bps.

Commitments are due on Dec. 16, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal, and proceeds from the new loans will be used by the Charlotte, N.C.-based specialty insurance broker to fund two acquisitions and pay a dividend.

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