Air Medical, Tekni-Plex, Concordia break; Communications Sales, Boyd, Milacron, NEP updated

By Sara Rosenberg

New York, April 15 – Air Medical Group Holdings Inc.’s credit facility made its way into the secondary market on Wednesday, with the term loan quoted above its original issue discount, and Tekni-Plex Inc. and Concordia Healthcare Corp. freed up as well.

Switching to the primary market, Communications Sales & Leasing Inc. upsized its term loan, widened the original issue discount and extended the call protection, and Boyd Corp. changed spreads, offer prices and call protection on its first- and second-lien debt.

Additionally, Milacron LLC tightened the spread and offer price on its term loan while extending the call protection, NEP/NCP Holdco Inc. modified the original issue discount on its incremental second-lien term loan, and Access CIG LLC increased the size of its add-on first-lien term loan and adjusted the offer price.

Furthermore, Kloeckner Pentaplast accelerated the commitment deadline on its credit facility, and Aspen Dental Management Inc., IPC Corp. and HanesBrands Inc. launched their deals to investors.

Air Medical tops OID

Air Medical’s credit facility emerged in the secondary market on Wednesday, with the $1.01 billion seven-year term loan B seen at par bid, par ½ offered, according to a trader.

The term loan is priced at Libor plus 350 basis points with a 25 bps step-down at 4.25 times first-lien leverage and a 1% Libor floor, and was issued at a discount of 99¾. There is 101 soft call protection for six months.

During syndication, the term loan was upsized from $920 million, pricing was decreased from Libor plus 400 bps, and the discount firmed from revised talk of 99½ to 99¾ and initial talk of 99 to 99½.

The company’s $1,185,000,000 senior credit facility also includes a $175 million ABL facility.

Air Medical being acquired

Proceeds from Air Medical’s credit facility will be used to help fund its buyout by KKR from Bain Capital and Brockway Moran & Partners. The recent term loan upsizing reduced the junior capital raise for the transaction.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC, KKR Capital Markets LLC, Nomura Securities International Inc. and MCS Capital Markets LLC are the joint lead arrangers and bookrunners on the term loan B, and Bank of America Merrill Lynch, Morgan Stanley, Jefferies, KKR, Nomura and MCS are the joint lead arrangers on the ABL facility.

Closing is expected this quarter, subject to customary regulatory approvals.

Air Medical is a Lewisville, Texas-based provider of air ambulance services.

Tekni-Plex hits secondary

Tekni-Plex’s term loans broke for trading too, with the $400 million seven-year first-lien covenant-light term loan quoted at par ¼ bid, 101 offered and the $160 million eight-year second-lien covenant-light term loan quoted at par bid, par ¾ offered, according to a trader.

Pricing on the U.S. dollar term loan, as well as on a €150 million seven-year first-lien covenant-light term loan, is Libor/Euribor plus 350 bps with a 1% floor, and the debt was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 1% floor, and was sold at a discount of 99¼. This tranche has call protection of 102 in year one and 101 in year two.

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

Tekni-Plex lead banks

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Barclays and Goldman Sachs Bank USA are leading Tekni-Plex’s term loans.

During syndication, the amount of first-lien term loan debt was adjusted from a total size of $535 million with an up to €200 million carve-out, the spread was reduced from Libor/Euribor plus 400 bps, and the discount firmed at the tight end of the 99 to 99½ talk.

Also in syndication, the second-lien term loan was upsized from $155 million, pricing was lowered from Libor plus 800 bps, and the discount was revised from 99.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Concordia frees up

Concordia Healthcare’s credit facility also began trading, with the $575 million term loan B quoted at par 5/8 bid, 101 1/8 offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. The debt has 101 soft call protection for one year.

Recently, the term loan was downsized from $650 million as the company’s bond offering was upsized to $735 million from $610 million, pricing was cut from talk of Libor plus 400 bps to 425 bps, the discount was changed from 99, and the call protection was extended from six months.

The company’s $675 million credit facility also includes a $100 million revolver.

RBC Capital Markets LLC, Morgan Stanley, GE Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with the bonds and equity to fund the $1.2 billion acquisition of Covis Pharma Holdings Sarl, a Zug, Switzerland-based pharmaceutical company, and to refinance existing debt.

Concordia, an Oakville, Ont.-based health-care company, expects the acquisition to close this quarter.

Communications Sales reworked

Meanwhile, in the primary market, Communications Sales & Leasing lifted its 7.5-year term loan to $2.14 billion from $2 billion, adjusted the original issue discount to 98 from revised talk of 98 to 98½ and initial talk of 99, and pushed out the 101 soft call protection to one year from six months, a market source said.

The loan is priced at Libor plus 400 bps with a 1% Libor floor, the source continued. Earlier, the spread was increased to Libor plus 425 bps from talk at launch of Libor plus 400 bps, but it was then set back to the initial talk.

The company’s now $2.64 billion credit facility (BB) also includes a $500 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities, Goldman Sachs, Morgan Stanley, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp. and MUFG are leading the deal.

Communications Sales spinoff

Proceeds from Communications Sales’ credit facility and $1.51 billion of bonds, downsized from $1.65 billion with the term loan upsizing, will be used to help fund its spinoff from Windstream Holdings Inc.

Windstream expects to distribute about 80.1% of Communications Sales shares on April 24 to Windstream shareholders of record as of 5 p.m. ET on April 10. The distribution is conditioned upon satisfaction of certain customary closing conditions, including financing of the transaction.

Communications Sales is a real estate investment trust that owns fiber and copper network and other fixed real estate assets.

Boyd updates terms

Boyd cut pricing on its $365 million seven-year first-lien covenant-light term loan (B2/B) to Libor plus 425 bps from Libor plus 500 bps, changed the original issue discount to 99½ from 99 and shortened the 101 soft call protection to six months from one year, while keeping the 1% Libor floor intact, according to a market source.

As for the $142 million eight-year second-lien term loan (Caa2/B-), pricing was lifted to Libor plus 925 bps from Libor plus 875 bps, the discount widened to 97½ from 98 and the call protection was revised to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

The company’s $557 million credit facility also includes a $50 million five-year revolver (B2/B).

Recommitments were due at 2 p.m. ET on Wednesday, the source added.

UBS AG, RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to help fund Genstar Capital’s buyout of Boyd, a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Milacron flexes

Milacron trimmed pricing on its $730 million covenant-light term loan (B2) due Sept. 28, 2020 to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, moved the offer price to par from 99½, extended the 101 soft call protection to one year from six months and eliminated the 18-month MFN sunset provision, a source said.

The loan still has a 1% Libor floor and a 25 bps step-down at 4 times net total leverage upon a qualified initial public offering.

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

Bank of America Merrill Lynch, JPMorgan, Barclays, Credit Suisse Securities, Goldman Sachs and KeyBanc Capital Markets are leading the deal that will be used to refinance an existing term loan, repay bonds and fund a dividend.

Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids.

NEP/NCP tweaks OID

NEP/NCP Holdco moved the original issue discount on its $75 million incremental second-lien term loan (Caa1/B-) due July 22, 2020 to 98½ from 98, while keeping pricing at Libor plus 875 bps with a 1.25% Libor floor, according to a market source.

With the incremental loan, the company is repricing its existing second-lien term loan to Libor plus 875 bps with a 1.25% Libor floor from Libor plus 825 bps with a 1.25% Libor floor in order to be fungible.

As before, all of the second-lien term loan debt will have call protection of 102 in year one and 101 in year two with a 101 initial public offering carve-out.

Also with the new debt, the company is changing the springing covenant on its existing revolver to a dollar-draw trigger from a 15% utilization trigger, adding a 75% step in the excess cash flow sweep on the first- and second-lien term loans when total leverage is greater than 5 times, versus a previous maximum excess cash flow sweep of 50%, trimming the free and clear incremental facility basket to $50 million from $200 million and lifting the non-loan party investment basket to $200 million, the source said.

NEP/NCP shuts books

Recommitments for NEP/NCP’s incremental second-lien term loan were due by 5 p.m. ET on Wednesday, the source added.

Barclays is leading the deal that will be used to fund the acquisition of Mediatec Group, fund a separate bolt-on acquisition and repay some revolving credit facility borrowings.

Other funds for the Mediatec transaction will come from the assumption of Mediatec’s existing debt and additional cash contributed by funds managed by Crestview Partners in exchange for common equity and equity contributions by NEP management.

Net first-lien leverage is 4.5 times, and net total leverage is 5.3 times.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events. Mediatec is a Sweden-based provider of integrated technical solutions for event and television productions.

Access CIG modified

Access CIG raised its add-on first-lien covenant-light term loan due October 2021 to $60 million from $50 million and changed the original issue discount to 99¾ from 99½, according to a market source.

The add-on loan continues to be priced at Libor plus 500 bps with a 1% Libor floor.

Recommitments were due by noon ET on Wednesday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to pay down revolver borrowings and for general corporate purposes, including potential tuck-in acquisitions.

Closing is targeted for Friday, the source added.

Access CIG is a Livermore, Calif.-based provider of records and information management services.

Kloeckner moves deadline

Kloeckner Pentaplast modified the commitment deadline on its €931 million credit facility to Monday from April 22, a market source remarked.

The facility consists of a €100 million 4.75-year revolver, a €631 million five-year U.S. equivalent first-lien covenant-light term loan and a €200 million five-year first-lien covenant-light term loan.

Talk on the term loans is Libor/Euribor plus 450 bps to 475 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities, Barclays, Deutsche Bank Securities and Jefferies are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Kloeckner is a Montabaur, Germany-based provider of rigid plastic film.

Aspen Dental launches

Also in the primary, Aspen Dental held a bank meeting on Wednesday to launch a $415 million credit facility (B1), split between a $35 million revolver and a $380 million covenant-light term loan, according to a market source.

Talk on the term loan is Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due on April 24.

RBC Capital Markets, Credit Suisse Securities, BMO Capital Markets, Deutsche Bank Securities and GE Capital Markets are leading the deal that will be used with $150 million of privately placed unsecured debt to fund the recapitalization of the company by American Securities LLC, in partnership with current owners, Ares Management LP and Leonard Green & Partners LP, and management.

First-lien leverage is 3.9 times, and total leverage is 5.4 times.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

IPC details emerge

IPC held its call in the morning, at which time lenders were presented with a fungible $15 million add-on to the company’s first-lien term loan due Aug. 6, 2021 and a repricing of the existing $595 million first-lien term debt, a source remarked.

The total $610 million first-lien term loan is talked at Libor plus 450 bps with a 1% Libor floor and 101 soft call protection for six months. The repricing is offered at par, and the add-on term loan is offered at an original issue discount of 99½, the source continued.

The repricing would take existing first-lien term loan pricing down from Libor plus 550 bps with a 1% Libor floor, and the call protection on the existing deal would be revised from a 101 soft call through February 2016.

Barclays is the left lead on the deal that is expected to close on Tuesday.

Proceeds from the add-on loan will be used to repay revolver borrowings, the source added.

IPC is a Jersey City-based provider of mission-critical network services and trading communication technology to the financial markets community.

HanesBrands OID revealed

HanesBrands came out with original issue discount talk of 99½ on its $325 million seven-year term loan B that launched with a call during the session, according to a market source.

As previously reported, the term B is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.75 billion senior secured credit facility also includes a $1 billion five-year revolver and a $425 million five-year term loan A.

JPMorgan is leading the deal that will be used to refinance existing debt.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

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