Aecom, York Risk, ClubCorp, PGT, Capital Automotive reveal talk; TNT offer prices set

By Sara Rosenberg

New York, Sept. 4 – The primary loan market was active on Thursday with Aecom Technology Corp., York Risk Services Group, ClubCorp Club Operations Inc., PGT Inc. and Capital Automotive LP releasing price talk on their deals with launch.

Also, TNT Crane (North American Lifting Holdings Inc.) disclosed original issue discount guidance on its add-on debt, and DPx Holdings BV, Mannington Mills and U.S. Renal Care Inc. emerged with new deal plans.

Aecom holds meeting

Aecom Technology had its bank meeting on Thursday and launched its $1,262,500,000 seven-year covenant-light term loan B with talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99˝ and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 16, the source said.

The company also expects to get a $1.85 billion term loan A, a $1.05 billion revolver and a $500 million incremental performance letter-of-credit facility.

Bank of America Merrill Lynch, MUFG, Union Bank, Scotia Bank, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, BBVA Compass, Wells Fargo Bank, Sumitomo Mitsui Banking Corp., Credit Agricole CIB, Morgan Stanley Senior Funding Inc. and HSBC Securities (USA) Inc. are leading the deal (Ba1/BB+).

Aecom buying URS

Proceeds from Aecom’s new bank debt, $800 million in eight-year senior unsecured notes and $800 million in 10-year senior unsecured notes, will be used to fund the cash consideration of the acquisition of URS Corp. and to refinance some existing debt at Aecom and URS.

URS stockholders will receive per share consideration equal to $33.00 in cash and 0.734 of a share of Aecom common stock, but may elect to receive all cash or all stock consideration, with the election subject to a customary proration mechanism to achieve an aggregate consideration mix of about 59% cash and 41% Aecom common shares.

The transaction is valued at about $6 billion, including the assumption of URS debt.

Closing is expected in October, subject to approvals from both companies’ stockholders, regulatory approvals and customary conditions. The transaction is not conditioned on financing.

Aecom is a Los Angeles-based engineering design firm. URS is a San Francisco-based provider of engineering, construction and technical services.

York Risk pricing surfaces

York Risk Services Group revealed talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99˝ and 101 soft call protection for six months on its $555 million seven-year covenant-light term loan B that launched with an afternoon meeting, a source said.

The company’s $655 million credit facility also includes a $100 million five-year revolver.

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

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets, BMO Capital Markets and Nomura are leading the deal that will be used to help fund the buyout of the company by Onex Corp. from ABRY Partners for $1,325,000,000.

York Risk is a Parsippany, N.J.-based provider of risk management, claims management and managed care services.

ClubCorp sets talk

ClubCorp launched with its call its fungible $250 million add-on senior secured covenant-light term loan (B+) due July 24, 2020 with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 to 99˝ and 101 soft call protection for six months, according to a market source.

In addition, the company intends to reprice its existing term loan to match the add-on pricing. Current pricing on the existing term loan is Libor plus 300 bps with a 1% Libor floor.

Commitments are due at 4 p.m. ET on Sept. 11, the source said.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used with cash to fund the $265 million purchase of Sequoia Golf, an Atlanta-based owner and manager of golf courses.

Closing is expected on Sept. 30, subject to the amendment of the company’s credit facility to provide the new term loan debt and customary conditions.

ClubCorp, a Dallas-based owner and operator of private golf and country clubs, business, sports, and alumni clubs, expects to have leverage of around 4.5 times with this transaction.

PGT guidance emerges

PGT launched with a morning meeting its $200 million seven-year covenant-light term loan B with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $235 million credit facility (B2/BB-) also includes a $35 million five-year revolver.

Commitments are due on Sept. 18, the source said.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are leading the deal that will be used with cash on hand to fund the roughly $111 million acquisition of CGI Windows & Doors Holdings Inc. from Cortec Group Fund IV LP, to refinance existing debt and for working capital and general corporate purposes.

Closing is expected this month, subject to customary conditions.

PGT is a North Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors. CGI is a Miami-based manufacturer of impact-resistant windows and doors.

Capital Automotive launches

Capital Automotive held its call and released talk of Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 on its $100 million incremental second-lien term loan, according to a market source.

The spread and floor on the incremental loan match the existing second-lien term loan, and all of the loans will get hard call protection of 102 in year one and 101 in year two, the source said.

Barclays is leading the deal that will be used with $300 million of ABS debt to fund the acquisition of the company by Brookfield Property Partners from DRA Advisors LLC.

Capital Automotive amending

Along with new loan, Capital Automotive is looking to amend its existing credit facility to allow for the change-of-control, decrease the capitalization rate to 7.25%, increase the maximum second priority lien amount to $450 million and refresh the 101 soft call protection for six months on its existing first-lien term loan, the source continued.

Amendment fees are 25 bps for revolver and first-lien term loan lenders and 75 bps for second-lien lenders.

Commitments and consents are due on Sept. 12.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

TNT reveals OIDs

TNT Crane came out with original issue discount talk of 99˝ on both its $65 million incremental first-lien term loan due November 2020 and $20 million incremental second-lien term loan due November 2021 in connection with its lender call, a market source remarked.

The first-lien term loan is priced at Libor plus 450 bps with a 1% Libor floor, and the second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor, in line with existing first-and second-lien term loan pricing.

Commitments are due on Sept. 15, the source continued.

Macquarie Capital is leading the deal that will be used to fund recent acquisitions and pay down revolving credit facility borrowings.

TNT Crane is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

DPx joins calendar

DPx surfaced with plans to hold a bank meeting at 1 p.m. ET on Friday to launch a $250 million seven-year first-lien term loan, according to a market source.

UBS Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and KeyBank are leading the deal that will be used to fund the acquisition of Gallus BioPharmaceuticals LLC from Ridgemont Equity Partners.

Closing is expected in the fourth quarter, subject to receipt of regulatory approvals.

DPx, owned by JLL Partners and Royal DSM, is a Durham, N.C.-based provider of CDMO services, pharmaceutical products and products for other industries. Gallus is a St. Louis-based contract manufacturing company specializing in biologics.

Mannington Mills on deck

Mannington Mills set a bank meeting for 2 p.m. ET on Monday to launch a $275 million seven-year term loan B, a market source said.

RBC Capital Markets and Societe Generale are leading the deal that will be used to refinance existing debt.

Net leverage is 2.9 times, the source added.

Mannington Mills is a Salem, N.J.-based manufacturer of residential and commercial sheet vinyl, luxury vinyl, laminate, hardwood and porcelain tile floors, as well as commercial carpet and rubber.

U.S. Renal readies loan

U.S. Renal Care Inc. will hold a call at 10 a.m. ET on Friday to launch a fungible $75 million incremental first-lien term loan, according to a market source.

The incremental loan is talked at Libor plus 325 bps with a 1% Libor floor and an original issue discount that has not yet been announced, the source said.

The spread and floor on the incremental loan matches the existing first-lien term loan.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with balance sheet cash to fund two acquisitions for about $98.3 million.

U.S. Renal is a Plano, Texas-based provider of dialysis services.

Bioventus coming soon

Bioventus scheduled a call for Tuesday to launch a $60 million six-year second-lien term loan, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Bioventus is a Durham, N.C.-based orthopedic healing company.

BWIC surfaces

Over in the secondary market, a roughly $230 million Bid Wanted In Competition was announced in the morning, and bids are due at 10 a.m. ET on Friday, a trader said.

Some names in the portfolio are Chrysler Group LLC, Dunkin’ Brands Inc., Gymboree Corp., HCA Inc., Kinetic Concepts Inc., Quintiles Transnational Corp. and US Airways Group Inc.

In total, there are about 92 issuers in the portfolio, the trader added.

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