SiteOne Landscape Supply frees up; Ashland, CityMD, eviCore, CommScope update deal terms

By Sara Rosenberg

New York, May 23 – SiteOne Landscape Supply Inc.’s term loan made its way into the secondary market on Wednesday, with levels quoted above its issue price.

Moving to the primary market, Ashland LLC firmed the spread on its term loan B at the low end of guidance and tightened the issue price, and CityMD lowered pricing on its first-lien term loan and modified the original issue discount.

Also, eviCore increased pricing on its first-lien term loan, CommScope Inc. set pricing on its term loan B at the low side of talk, and Lineage Logistics LLC pulled its term loan repricing from the market.

In addition, EagleClaw Midstream Ventures LLC, KMG Chemicals Inc., Rough Country and High Liner Foods Inc. disclosed price talk with launch.

SiteOne breaks

SiteOne Landscape Supply’s $297 million covenant-light term loan due April 2022 began trading on Tuesday, with levels seen at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps when leverage is 2.75 times and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

The leverage test for the step-down is defined to include an average ABL drawing to take into account seasonality, averaging the usage on the last day of each of the trailing four quarterly reporting periods.

The step-down was added to the term loan on Monday.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Ashland tweaks loan

Switching to the primary market, Ashland finalized pricing on its $600 million seven-year senior secured covenant-light term loan B (Ba1/BB+) at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and changed the issue price to par from 99.5, according to a market source.

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

Commitments were due at 5 p.m. ET on Tuesday, moved up from noon ET on Wednesday, the source said.

Citigroup Global Markets Inc., Bank of Nova Scotia, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and PNC Bank are leading the deal that will be used to retire 3 7/8% senior notes due 2018.

Closing is expected late this month.

Ashland is a Covington, Ky.-based specialty chemicals company.

CityMD flexes lower

CityMD cut the spread on its $225 million seven-year covenant-light first-lien term loan to Libor plus 400 bps from Libor plus 450 bps and adjusted the original issue discount to 99.75 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $255 million in credit facilities (B3/B-) also include a $30 million revolver.

Recommitments are due at 10 a.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus.

CityMD is an urgent care provider in the New York Metro area.

eviCore modified

eviCore raised pricing on its $834 million first-lien term loan due March 2021 to Libor plus 400 bps from Libor plus 375 bps and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Commitments were due at 3 p.m. ET on Tuesday, the source said.

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

eviCore, previously known as CareCore, is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations.

CommScope sets spread

CommScope firmed pricing on its $1,096,000,000 term loan B at Libor plus 200 bps, the tight end of the Libor plus 200 bps to 225 bps talk, a market source remarked.

The term loan still has no Libor floor, a par issue price and 101 soft call protection for six months.

Allocations are expected on Wednesday, the source added.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Lineage withdrawn

Lineage Logistics pulled the repricing of its $640 million covenant-light first-lien term loan due April 2021, because there was not enough investor demand, a market source said.

Talk on the repricing was Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, versus current pricing of Libor plus 350 bps with a 1% Libor floor.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and KKR Capital Markets were leading the deal.

Lineage Logistics is an Irvine, Calif.-based cold storage warehousing and logistics company.

EagleClaw discloses talk

In more primary happenings, EagleClaw Midstream Ventures held its bank meeting on Tuesday, and with the event, talk on its $1.25 billion seven-year first-lien term loan was announced at 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 $1.35 billion in senior secured credit facilities also include a $100 million super-priority revolver.

Commitments are due on June 8, the source said.

Jefferies LLC is leading the deal that will be used to help fund the buyout of the company by Blackstone Energy Partners and Blackstone Capital Partners for about $2 billion.

Closing is expected by the end of July.

EagleClaw is a Midland, Texas-based midstream operator in the Permian’s Delaware Basin in West Texas.

KMG guidance emerges

KMG Chemicals came out 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 on its $550 million seven-year term loan B that launched with a morning bank meeting, a market source remarked.

The company’s $600 million of senior secured credit facilities (B2/B+) also include a $50 million five-year revolver.

Commitments are due on June 9.

KeyBanc Capital Markets Inc., HSBC Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund the acquisition of Flowchem from Arsenal Capital Partners for $495 million, including working capital of about $17 million, to refinance existing debt and for general corporate purposes.

Closing is expected on June 15, subject to customary conditions and regulatory approval.

Pro forma total leverage will be 5.26 times utilizing $104.6 million of pro forma adjusted EBITDA.

KMG is a Fort Worth-based producer and distributor of specialty chemicals. Flowchem is a Waller, Texas-based manufacturer of pipeline performance products.

Rough Country launches

Rough Country held its bank meeting, launching its $205 million covenant-light first-lien term loan at talk of Libor plus 450 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 $225 million in first-lien credit facilities also include a $20 million revolver.

Commitments are due on June 6, the source said.

Golub Capital is leading the deal that will be used to help fund the buyout of the company by Gridiron Capital from Audax Private Equity.

The company is also getting an $85 million privately placed second-lien term loan led by Carlyle Private Credit for the buyout.

Rough Country is a Dyersburg, Tenn.-based supplier of aftermarket suspension lift kits and components to the off road SUV and light truck enthusiast market.

High Liner reveals OID

High Liner Foods released original issue discount talk in the 99.5 area on its fungible $70 million add-on term loan B due April 24, 2021 that launched with an afternoon lender call, a market source remarked.

Pricing on the add-on term loan B is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan B pricing, and the debt has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 1, the source added.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of Rubicon Resources LLC, a Culver City, Calif.-based seafood company.

Including the add-on, the term loan B will total $338 million.

High Liner is a Lunenburg, N.S.-based processor and marketer of frozen seafood.

© 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.