EmployBridge, Micron, Transplace, Shearer’s free to trade; Authentic Brands changes emerge

By Sara Rosenberg

New York, April 10 – EmployBridge LLC finalized the spread on its term loan B at the low side of guidance and tightened the original issue discount before breaking for trading on Tuesday, and deals from Micron Technology Inc., Transplace Holdings Inc. and Shearer’s Foods LLC freed up too.

In other news, Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) upsized its second-lien term loan tranches and modified the issue price on the debt as well as on its first-lien term loan tranches.

Also, Airxcel Inc. (AirX Holdings Inc.), NAI Entertainment Holdings LLC, H.B. Fuller Co., Golden Nugget Inc., Caesars Entertainment Opco (CEOC LLC), Highline Aftermarket Acquisition LLC, Apergy Corp. and Ferro Corp. disclosed price talk with launch.

Additionally, Consolidated Precision Products (WP CPP Holdings LLC), Isagenix International LLC, SunSource, SRAM LLC and ClubCorp Holdings Inc. emerged with new deal plans.

EmployBridge updated, trades

EmployBridge firmed pricing on its $485 million seven-year covenant-light first-lien term loan B (B3/B-) at Libor plus 500 basis points, the low end of the Libor plus 500 bps to 525 bps talk, and moved the original issue discount to 99.25 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Tuesday and by late afternoon the loan hit the secondary market with levels quoted at 99¾ bid, par ½ offered, a trader added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Citizens Bank, Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

EmployBridge is a workforce specialist provider.

Micron hits secondary

Micron Technology’s $736,875,000 senior secured covenant-light term loan B (Baa2/BBB-) due April 26, 2022 began trading, with levels seen at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2022 down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected on April 27.

Micron is a Boise, Idaho-based semiconductor company.

Transplace frees up

Transplace Holdings’ fungible $10 million add-on senior secured first-lien term loan due October 2024 and repriced $400 million senior secured first-lien term loan due October 2024 broke too, with levels quoted at par ¼ bid, 101 offered, according to a market source.

Pricing on the term loan debt is Libor plus 375 bps with a 1% Libor floor. The add-on loan was issued at a discount of 99.75 and the repricing was issued at par. The debt has 101 soft call protection for one year.

During syndication, the add-on term loan was downsized from $25 million, pricing on all of the debt was increased from Libor plus 350 bps and the call protection was extended from six months.

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used to pay down some second-lien borrowings, and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

Trading levels on the existing second-lien loan were 101 bid, 102 offered on Tuesday, the source added.

Transplace is a Frisco, Texas-based provider of highly configurable transportation management solutions, with a complementary suite of specialized third-party logistics services.

Shearer’s Foods breaks

Shearer’s Foods’ $235 million incremental first-lien term loan (B3/B-) and repriced roughly $280 million first-lien term loan (B3/B-) emerged in the secondary market as well, with levels seen at 99 5/8 bid, 99 7/8 offered, a market source said.

Pricing on the term loan debt is Libor plus 425 bps with a 1% Libor floor. The incremental loan was sold at an original issue discount of 99.5 and the repricing was issued at par. The term loan debt has 101 soft call protection for six months.

Antares Capital and Golub Capital are leading the deal.

Proceeds from the incremental loan will be used to redeem $235 million of existing senior secured notes, and the repricing will take the existing term loan up from around Libor plus 393 bps with a 1% Libor floor.

The incremental loan and repriced loan are being combined with the company’s roughly $220 million first-lien term loan that is currently priced at Libor plus 425 bps with a 1% Libor floor, resulting in a single tranche sized at about $735 million and maturing on June 30, 2021.

Shearer’s Foods, a portfolio company of Ontario Teachers’ Pension Plan, is a Massillon, Ohio-based private label supplier and contract manufacturer of salty snacks, cookies and crackers.

Authentic Brands revised

Back in the primary market, Authentic Brands Group lifted its fungible funded covenant-light second-lien term loan due Sept. 29, 2025 to $55 million from $50 million and its fungible delayed-draw covenant-light second-lien term loan due Sept. 29, 2025 to $30 million from $20 million, a market source remarked.

Also, the company changed the original issue discount on the second-lien term loans and on its fungible $250 million covenant-light first-lien term loan due Sept. 29, 2024 and fungible $90 million delayed-draw covenant-light first-lien term loan due Sept. 29, 2024 to 99.75 from 99.5, the source continued.

As before, the first-lien term loan debt is priced at Libor plus 350 bps with a 1% Libor floor and has 101 soft call protection for six months, the second-lien term loan debt is priced at Libor plus 775 bps with a 1% Libor floor and has hard call protection of 102 and then 101, and the delayed-draw loans have a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Recommitments were due at 4 p.m. ET on Tuesday, with allocations targeted for Wednesday morning.

Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Nautica from VF Corp. and other acquisitions, and to put cash on the balance sheet.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

Airxcel price guidance

Airxcel held its bank meeting on Tuesday and announced price talk on its $360 million seven-year senior secured first-lien term loan (B3/B) and $120 million eight-year senior secured second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $540 million of credit facilities also include a $60 million five-year ABL revolver.

Commitments are due on April 24, the source added.

Jefferies LLC and Morgan Stanley are leading the deal that will be used to help fund the buyout of the company by L Catterton from One Rock Capital Partners LLC. Jefferies is left on the first-lien and Morgan Stanley is left on the second-lien.

Airxcel is a Wichita, Kan.-based producer and distributor of heating, ventilating, air conditioning, appliance and a variety of composite and soft good products serving specialty markets.

NAI launches

NAI Entertainment released talk of Libor plus 275 bps to 300 bps with a 1% Libor floor and an original issue discount of 99.5 on its $300 million seven-year covenant-light term loan B (B1/BB) that launched with a presentation in the morning, a market source said.

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

Commitments are due at noon ET on April 24.

Wells Fargo Securities LLC is leading the deal that will be used to refinance $300 million of senior secured notes due 2018.

NAI is a motion picture company, with a diversified portfolio of theatre and other real estate assets in the United States, United Kingdom, Brazil and Argentina as well as equity interests in Viacom Inc. and CBS Corp.

H.B. Fuller talk

H.B. Fuller came out with talk of Libor plus 175 bps to 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $2,139,125,000 senior secured covenant-light term loan B due Oct. 20, 2024 that launched with a morning call, according to a market source.

Commitments/consents are due at noon ET on Friday, the source said.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B due 2024 from Libor plus 225 bps with a 0% Libor floor.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company.

Golden Nugget repricing

Golden Nugget held a call at 4:00 p.m. ET to launch a $2,314,000,000 term loan talked at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Responses are due at noon ET on Friday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Golden Nugget is a diversified restaurant, hospitality and entertainment company.

Caesars holds call

Caesars Entertainment surfaced in the morning with plans to host a lender call at 3 p.m. ET to launch a $1,496,000,000 covenant-light first-lien term loan (Ba3/BB) due Oct. 6, 2024 talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 10 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Caesars is a Las Vegas-based full service gaming and entertainment company.

Highline comes to market

Highline Aftermarket Acquisition launched on its morning call a $368 million seven-year term loan talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.75 for old money, a discount of 99.5 for new money and 101 soft call protection for six months, a market source remarked.

The company’s $408 million of senior secured credit facilities (B2/B) also include a $40 million five-year revolver.

Commitments are due on April 24, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing bank debt and mezzanine debt, and to fund the acquisition of South/Win, a Greensboro, N.C.-based manufacturer of automotive fluids.

Highline Aftermarket is a Memphis-based manufacturer and distributor of packaged automotive chemicals, lubricants and parts.

Apergy reveals guidance

Apergy launched at its morning bank meeting its $365 million term loan B at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $615 million of credit facilities (Ba1/BB) also include a $250 million revolver.

Commitments are due on April 20.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the company’s spinoff from Dover Corp.

Apergy is a the Woodlands, Texas-based provider of highly engineered technologies that help companies drill for and produce oil and gas efficiently and safely.

Ferro floats OIDs

Ferro held its call, launching its $235 million covenant-light term loan B-2 (Ba3/BB-) due February 2024 and $230 million covenant-light term loan B-3 (Ba3/BB-) due February 2024 with original issue discount talk of 99.75, a market source said.

As previously reported, talk on the B-2 and B-3 term loans, as well as on a $355 million covenant-light term loan B-1 (Ba3/BB-) due February 2024, is Libor plus 225 bps with a 0% Libor floor, the term loan B-1 is offered at par and all of the loans have 101 soft call protection for six months.

Commitments are due at noon ET on April 19, the source added.

Deutsche Bank Securities Inc. and PNC Bank are leading the deal that will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor, refinance an existing euro term loan and add cash to the balance sheet.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

Consolidated Precision on deck

Also in the primary market, Consolidated Precision Products set a lender presentation for 11 a.m. ET on Thursday to launch $875 million of senior secured credit facilities, according to a market source.

The facilities consist of a $125 million revolver (B), a $625 million first-lien term loan (B) and a $125 million second-lien term loan (CCC+), the source said.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

Isagenix joins calendar

Isagenix scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $375 million seven-year first-lien term loan talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, a market source remarked.

Commitments are due at 5 p.m. ET on April 25, the source added.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund ESOP purchase of a minority stake in the company.

Isagenix is a Gilbert, Ariz.-based nutrition and weight management company.

SunSource readies deal

SunSource set a lender call for noon ET on Wednesday to launch $285 million in term loans, split between a $160 million incremental first-lien term loan due Dec. 11, 2024 and a $125 million eight-year second-lien term loan, a market source said.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Natixis, ING and UBS Investment Bank are leading the deal, with Barclays left on the first-lien and Credit Suisse left on the second-lien loan. Barclays is the administrative agent.

The term loans will be used to fund the acquisition of Ryan Herco, repay ABL borrowings, and pay related fees and expenses.

SunSource, a Clayton, Dubilier & Rice portfolio company, is an Addison, Ill.-based distributor of fluid power and motion control technologies. Ryan Herco is a distributor of fluid control systems, fluid filtration systems and fluid handling products.

SRAM plans repricing

SRAM scheduled a lender call for Wednesday to launch a $503 million term loan B due March 2024 talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on April 18, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

SRAM is a Chicago-based bicycle components company.

ClubCorp coming soon

ClubCorp will hold a call at 11 a.m. ET on Wednesday to launch a new loan transaction to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

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