Helix Generation, American Axle, HCA, Entegris, Allnex, Compass Group, HUB, CPI break

By Sara Rosenberg

New York, March 10 – A number of deals emerged in the secondary market on Friday, including Helix Generation Funding LLC, American Axle & Manufacturing Holdings Inc., HCA Inc., Entegris Inc., Allnex and Compass Group.

Also, HUB International Ltd. adjusted the issue price on its incremental covenant-light first-lien term loan B, and CPI International Inc. revised terms on its first-and second-lien term loans, and then both of those deals freed up for trading too.

In other happenings, Cologix Holdings Inc. lowered spreads on its first-lien, delayed-draw and second-lien term loans, Arctic Glacier LLC trimmed pricing on its term loan, added a step-down and modified the original issue discount, and Resolute Investment Managers tightened the issue price on its add-on first-lien term loan.

Furthermore, Sterling Talent Solutions disclosed price talk with launch, and ON Semiconductor Corp., RGIS Services LLC and INAP (Internap Corp.) surfaced with new deal plans.

Helix frees up

Helix Generation, an operator of power generation facilities, saw its credit facility begin trading on Friday, with the $1,675,000,000 seven-year first-lien term loan B quoted at par ½ bid, 101¼ offered on the break. and then it moved up to 101½ bid, 102¼ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.54 billion, pricing was reduced from Libor plus 425 bps, and the discount was revised from 99.

The company’s $1.85 billion credit facility (Ba2/BB) also includes a $175 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Barclays, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp. and ICBC are leading the deal that will be used to help fund the $2.2 billion acquisition by LS Power of about 3,950 MW of generation resources in the Northeastern United States, through its affiliate Helix Generation, from TransCanada Corp.

Closing is expected this quarter, subject to regulatory approvals and third-party consents.

American Axle breaks

American Axle’s credit facility began trading during the session, with the $1.55 billion seven-year term loan B quoted at par 3/8 bid, par 7/8 offered, a source said.

Pricing on the term loan B is Libor plus 225 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The tranche includes 101 soft call protection for one year.

During syndication, pricing on the term loan B was lowered from talk of Libor plus 250 bps to 275 bps, the discount was modified from 99.5 and the call protection was extended from six months.

The company’s $2.45 billion senior secured credit facility (Ba2/BB/BB+) also includes an $800 million five-year revolver and a $100 million five-year term loan A.

J.P Morgan Securities LLC is leading the deal that will be used with $1.2 billion of senior notes to fund the acquisition of Metaldyne Performance Group Inc. for about $1.6 billion in cash and stock, plus the assumption of $1.7 billion in net debt.

Closing is expected in the first half of this year, subject to shareholder and regulatory approval.

American Axle is a Detroit-based manufacturer of driveline and drivetrain systems and related components. Metaldyne is a Plymouth, Mich.-based provider of components for use in powertrain and suspension applications.

HCA levels emerge

HCA’s $1,489,000,000 senior secured term loan B-9 (BBB-) hit the secondary market, with levels seen at par ¼ bid, par 5/8 offered, according to a market source.

The loan is priced at Libor plus 200 bps, after firming during syndication at the low end of the Libor plus 200 bps to 225 bps talk. The debt has no Libor floor and 101 soft call protection for six months and was issued at par.

Bank of America Merrill Lynch is leading the deal that will be used to refinance a term loan B-6 priced at Libor plus 325 bps with no Libor floor.

HCA is a Nashville, Tenn.-based health care services provider.

Entegris starts trading

Another deal to break was Entegris, with its $234 million first-lien term loan due April 2021 quoted at par ¼ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 225 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on Monday.

Entegris is a Billerica, Mass.-based provider of solutions for advanced manufacturing in a variety of high technology industries, including semiconductor, microelectronics, alternative energy and life sciences.

Allnex frees to trade

Allnex’s repriced $698 million term loan broke for trading in the afternoon at par ½ bid, 101 offered, according to a trader.

The company is also getting a €425 million equivalent U.S. dollar and euro add-on term loan and repricing its roughly €730 million term loan.

Pricing on all of the loans is Libor/Euribor plus 325 bps. The U.S. term debt has a 0.75% Libor floor and the euro term debt has a 0% floor, and all of the debt, due September 2023, has 101 soft call protection for six months. The repricings were issued at par.

During syndication pricing on all of the loans firmed at the low end of the most recent talk of Libor/Euribor plus 325 bps to 350 bps, talk on the U.S loan repricing was revised earlier from Libor plus 300 bps to 325 bps and the add-on was added to the transaction.

Morgan Stanley Senior Funding Inc. is the physical bookrunner on the deal (B1), and ING is a bookrunner.

The add-on term loan will be used to fund a dividend, and the repricings will take the U.S. and euro term loans down from Libor/Euribor plus 425 bps with a 0.75% floor.

Allnex is a Brussels-based supplier of resins and additives.

Compass above par

Compass Group’s $565.7 million term loan B also emerged in the secondary market, with levels seen at par ½ bid, par 7/8 offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance/reprice an existing term loan B.

Compass Group is a Westport, Conn.-based investment firm specializing in acquiring controlling stakes in small- to middle-market companies.

HUB tweaked, trades

HUB International modified the issue price on its fungible $375 million incremental covenant-light first-lien term loan B (B1) due Oct. 2, 2020 to par from talk in the range of 99.5 to 99.75, a market source remarked.

As before, pricing on the incremental loan is Libor plus 325 bps with a step-down to Libor plus 300 bps when consolidated first-lien net leverage is 4 times and a 1% Libor floor, and the debt has 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET, and then the loan made its way into the secondary market with levels seen at par ½ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used to repay $60 million in revolver borrowings and to refinance $300 million in existing 9¼% second-lien notes due 2021.

Closing is expected during the week of March 13.

HUB is a Chicago-based insurance brokerage.

CPI reworks deal

CPI International set pricing on its $127.7 million incremental first-lien term loan (B2/B+) due April 2021 at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and moved the original issue discount to 99.9 from 99.75, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Regarding the company’s $100 million second-lien term loan (Caa2/CCC+) due April 2022, pricing was trimmed to Libor plus 725 bps from Libor plus 775 bps, the discount was changed to 99.5 from 98.5, and the call protection was adjusted to 101 for one year, from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

Another revision made was that the amendment fee offered to existing first-lien lenders in connection with this transaction was scaled back to 10 bps from 25 bps.

CPI hits secondary

With final terms in place, CPI’s term debt began trading, with the first-lien term loan quoted at par ½ bid, par ¾ offered and the second-lien term loan quoted at par ¼ bid, 101¼ offered, another source added.

UBS Investment Bank is leading the deal that will be used to refinance existing debt.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

Cologix flexes lower

Back in the primary market, Cologix Holdings cut pricing on its $300 million seven-year covenant-light first-lien term loan (B2/B+) and $60 million 4.75-year delayed-draw for six months first-lien term loan (B2/B+) to Libor plus 300 bps from talk of Libor plus 350 bps to 375 bps, a market source said.

The first-lien term loan still has a 1% Libor floor, the delayed-draw term loan still has a 0% Libor floor, a ticking fee of the full spread and a first-lien net leverage covenant, and both tranches are still offered with an original issue discount of 99.5 and 101 soft call protection for six months.

The company also trimmed the spread on its $135 million eight-year covenant-light second-lien term loan (Caa2/B-) to Libor plus 700 bps from talk of Libor plus 750 bps to 775 bps, and left the 1% Libor floor, discount of 99 and hard call protection of 102 in year one and 101 in year two unchanged, the source continued.

The company’s $570 million senior secured credit facility includes a $75 million revolver (B2/B+) as well.

Cologix being acquired

Proceeds from Cologix’s credit facility will be used to help fund its purchase by Stonepeak Infrastructure Partners. The existing Cologix investors, including Grant van Rooyen, the van Rooyen Group, company management, Columbia Capital and Greenspring Associates, will continue to hold a material interest in the company.

Barclays, TD Securities (USA) LLC and Jefferies Finance LLC are leading the debt.

Final commitments were due at 5 p.m. ET on Friday, the source added.

Closing on the acquisition is subject to regulatory approvals.

Cologix is a Denver-based data center and interconnection solutions provider.

Arctic Glacier revised

Arctic Glacier lowered the spread on its $415 million seven-year covenant-light first-lien term loan to Libor plus 425 bps from Libor plus 475 bps, added a 25 bps step-down at 4.25 times first-lien leverage and changed the original issue discount to 99.5 from 99, according to a market source.

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

The company’s $475 million credit facility (B2/B-) also includes a $60 million revolver.

Recommitments are due at noon ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Societe Generale are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Arctic Glacier is a Winnipeg, Man.-based manufacturer and distributor of packaged ice.

Resolute changes OID

Resolute Investment Managers revised the original issue discount on its fungible $75 million add-on first-lien term loan (Ba2) to 99.875 from 99.5, a market source said.

As before, pricing on the add-on loan is Libor plus 450 bps with a 1% Libor floor, and the add-on and existing first-lien term loan are getting 101 soft call protection for six months.

Recommitments are due at noon ET on Monday, the source added.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the acquisition of a controlling interest of Shapiro Capital Management LLC.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets. Shapiro is an Atlanta-based investment adviser.

Sterling releases talk

Also on the new deal front, Sterling Talent Solutions held its lender call on Friday, launching the repricing of its $493.6 million term loan B due June 19, 2022 at of Libor plus 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal that will reprice the existing term loan B down from Libor plus 475 bps with a 1% Libor floor.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

ON Semiconductor on deck

ON Semiconductor is set to hold a lender call at 10 a.m. ET on Tuesday to launch a $2.38 billion covenant-light term loan B due March 2023 talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC, SMBC and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0% Libor floor.

Commitments for existing lenders are due at noon ET on Thursday and commitments for new lenders are due at noon ET on March 17, the source said.

Closing is targeted for March 31.

ON Semiconductor is a Phoenix-based semiconductor company.

RGIS readies deal

RGIS Services will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $495 million credit facility (B3), a market source said.

The facility consists of a $35 million five-year revolver and a $460 million six-year first-lien term loan, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Natixis are leading the deal that will be used to refinance existing debt.

RGIS is an Auburn Hills, Mich.-based provider of inventory services, data collection, insight, merchandising and optimization solutions.

INAP joins calendar

INAP emerged with plans to hold a bank meeting on Wednesday afternoon to launch a $320 million credit facility, according to a market source.

The facility consists of a $20 million revolver and a $300 million term loan, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

INAP is an Atlanta-based provider of IT Infrastructure solutions.

Outfront wraps

In other news, Outfront Media Inc. priced its $1.1 billion senior secured credit facility (Ba1/BB+) in line with initial talk, a market source said.

The facility includes a $430 million five-year revolver priced at Libor plus 200 bps with a 0% Libor floor, and a $670 million seven-year covenant-light first-lien term loan B priced at Libor plus 225 bps with a 0% Libor floor, and sold at an original issue discount of 99.75. The term loan B has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Wells Fargo Securities LLC and MUFG are leading the deal that will be used to amend and extend an existing revolver and term loan B, upsize the term loan B by $10 million and pay related fees and expenses.

Closing is expected on March 23.

Outfront Media is a New York-based out-of-home media company.

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