Professional Paint term loan filling up; Knoll sees commitments coming in

By Sara Rosenberg

New York, Sept. 13 - Professional Paint Inc.'s in-market deal is moving along at a better-than-expected pace with about two thirds of the institutional tranche already spoken for. And, syndication of Knoll Inc.'s deal continued to make progress as a number of commitments were placed in the books on Monday.

Approximately $100 million in commitments have found their way into the books for Professional Paint's $156 million term loan since the deal launched mid-last week and the syndicate is "expecting a lot more people to get back with information this week," a fund manager told Prospect News.

When the deal first came to market, some investors were skeptical on its ability to get done without a pricing modification because senior leverage was felt to be a little high for the proposed spread. But, with the latest update, investors are now gaining the impression that the deal may successfully syndicate at opening levels.

The $181 million credit facility consists of a $25 million revolver and a $156 million term loan, both talked at Libor plus 325 basis points. The term loan is being offered at par.

Senior leverage is just over 3½ times.

"It doesn't sound like pricing will go up on it," the fund manager said. "I wanted pricing to go to 400, 450 but it doesn't sound like it will go that way. I probably will commit to it. I want to understand a little bit more about the business before I do."

Merrill Lynch Capital is the lead bank on the deal that will be used to help fund Cosorcio Comex's acquisition of Professional Paint from The Jordan Co.

Professional Paint is a Denver-based manufacturer and distributor of architectural paints and coatings.

Knoll gets commitments

Knoll's $500 million senior secured credit facility (BB-), which just launched this past Thursday, is moving along nicely as "a bunch of commitments" came in on Monday, according to a market source, who was optimistic about the deal since "it seems like guys are looking at it."

The facility consists of a $75 million revolver and a $425 million term loan, with both tranches talked at Libor plus 250 basis points. The term loan is being offered to investors at par.

UBS Securities LLC and Goldman Sachs are the lead banks on the deal, with UBS listed on the left.

Proceeds will be used to refinance existing debt and to fund a modest dividend to existing shareholders.

Knoll is an East Greenville, Pa., designer and manufacturer of branded office furniture products and textiles.

Reliant active again

Houston-based Reliant Energy Inc.'s term loan was seen trading around Monday in the par ¼ bid, par ¾ context with no specific news spurring on the activity, according to a trader.

The energy company's paper was actively trading toward the end of last week as well in pretty much the same context, the trader added.

Huntsman around par

Huntsman Corp.'s bank debt was quoted at par bid, par ¼ offered, according to a trader, unchanged on the day despite news of an initial public offering since the paper is already around paydown levels.

On Monday, the Salt Lake City-based chemical company announced that it is looking to approach the equity market with a proposed initial public offering of common stock. Proceeds from the IPO would be used "to repay Huntsman's indebtedness," the news release said.

The company plans on filing and registration statement with the Securities and Exchange Commission regarding the IPO during the fourth quarter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.