Momentive Performance, Transact, AppLovin, Blackstone Mortgage deal revisions surface

By Sara Rosenberg

New York, April 16 – Momentive Performance Materials Inc. (MPM Holdings Inc.) on Tuesday reduced its U.S. term loan size as a euro term loan tranche was added to the transaction and tightened the spread and original issue discount on the U.S. piece.

Also, Transact (RCP Vega Inc.) lifted pricing on its term loan, added a step-down and widened the issue price, AppLovin Corp. modified the original issue discount on its incremental first-lien term loan, and Blackstone Mortgage Trust Inc. finalized the spread on its term loan B at the low end of guidance and modified the issue price.

Furthermore, Process Solutions and Flow Control (FR Flow Control Luxco 1 Sarl) released price talk on their loan transactions with launch, and Wells Enterprises Inc. and GlobalTranz Enterprises Inc. joined the near-term calendar.

Momentive reworked

Momentive Performance Materials trimmed its U.S. five-year covenant-lite term loan B (B1/B+) to $750 million from $839 million, cut pricing to Libor plus 325 basis points from talk in the range of Libor plus 375 bps to 400 bps, changed the original issue discount to 99.5 from 99 and extended the 50 bps MFN protection to 24 months, a market source remarked.

Also, the company added a €78 million privately placed five-year covenant-lite term loan B (B1/B+) to the capital structure, at pricing of Euribor plus 375 bps with a 0% floor and a discount of 99.5, the source continued.

The U.S. term loan still has a 0% Libor floor and 101 soft call protection for six months.

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

BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading the deal.

Momentive being acquired

Momentive’s new bank debt will be used with cash to fund its purchase by SJL Partners LLC, KCC Corp. and Wonik QnC Corp. for $32.50 per share. The transaction is valued at about $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions. The transaction is not subject to any financing contingency.

Momentive is a Waterford, N.Y.-based silicones and advanced materials company. KCC is a Seoul, South Korea-based chemicals manufacturer. Wonik is a Gumi, South Korea-based manufacturer and seller of quartz and ceramic wares used in the production of semiconductor wafers.

Transact changes emerge

Transact raised pricing on its $260 million seven-year covenant-lite first-lien term loan (B3/B) to Libor plus 500 bps from Libor plus 425 bps, added a 50 bps step-down at B3/B- corporate ratings with a stable outlook, widened the original issue discount to 98.5 from 99 and modified some covenants, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Current corporate ratings are Caa1/B- with a stable outlook.

Commitments are due at noon ET on Wednesday, the source said.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Reverence Capital Partners LP from Blackboard Inc.

Closing is expected this quarter.

Transact is a Phoenix-based integrated payment and software solutions platform that facilitates mission-critical higher education student transactions.

AppLovin tweaked

AppLovin adjusted the original issue discount on its fungible $400 million incremental first-lien term loan (B+) to 99.75 from 99.5, a market source said.

The incremental term loan is priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when total leverage is 3.5 times and a 0% Libor floor.

Bank of America Merrill Lynch and KKR Capital Markets are leading the deal that will be used to add cash to the balance sheet for acquisitions and investments.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

Blackstone Mortgage revised

Blackstone Mortgage Trust set pricing on its $400 million seven-year senior secured term loan B (BB-) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and changed the original issue discount to 99.75 from 99.5, according to a market source.

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

Recommitments were due at noon ET on Tuesday, the source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used for general corporate purposes, including investment portfolio growth.

Blackstone Mortgage Trust is a New York-based real estate finance company.

Process Solutions guidance

Also in the primary market, Process Solutions held its bank meeting on Thursday morning and, shortly before the event kicked off, price talk on the $355 million seven-year covenant-lite first-lien term loan was announced at Libor plus 575 bps to 600 bps with a 0% Libor floor and an original issue discount of 98, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $405 million of credit facilities (B/BB-) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on April 29.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC from Newell Brands.

Closing is expected this quarter, subject to regulatory approval and other customary conditions.

Process Solutions is a Greenville, S.C.-based manufacturer and material sciences company that offers custom-designed plastic, nylon, monofilament and zinc products in the health care, consumer and industrial end markets.

Flow Control floats talk

Flow Control came out with talk of Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months on its $180 million term loan B (B3) and $70 million cash collateralized term loan C (Ba3) that launched with a bank meeting during the session, a market source remarked.

The term loan B and term loan C are being sold as a strip.

The company’s $290 million of credit facilities also include a $40 million revolver (B3).

Commitments are due on May 1, the source added.

BNP Paribas Securities Corp. and Natixis are leading the deal that will be used to help fund the buyout of the company by First Reserve from the Weir Group plc for an enterprise value of £275 million, payable in cash and subject to customary working capital and debt-like adjustments at closing.

Closing is expected this quarter, depending on antitrust approvals and other customary conditions.

Flow Control is a designer, manufacturer and aftermarket services provider of engineered valves and pumps used in energy and broader industrial applications.

Wells Enterprises on deck

Wells Enterprises set a lender call for April 23 to launch a $100 million add-on covenant-lite term loan (B1) due 2025, according to a market source.

BMO Capital Markets is leading the deal that will be used to fund the acquisition of Fieldbrook Foods from Arbor Investments.

Currently, the company’s term loan is sized at about $173 million.

Wells Enterprises is a Le Mars, Iowa-based owned ice cream and frozen treat manufacturer. Fieldbrook Foods is a Dunkirk, N.Y.-based ice cream producer.

GlobalTranz coming soon

GlobalTranz Enterprises scheduled a bank meeting for Thursday to launch $390 million of term loans (B2/B-), split between a $310 million seven-year first-lien term loan and an $80 million delayed-draw first-lien term loan, a market source said.

The term loans have 101 soft call protection for six months.

Commitments are due at noon ET on May 2, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Providence Equity Partners LLC from the Jordan Co. LP.

GlobalTranz is a Scottsdale, Ariz.-based technology-driven third-party logistics solutions provider.

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