Element Materials breaks; Imagine!, AGS, MultiPlan set changes; EagleClaw, KMG accelerated

By Sara Rosenberg

New York, June 5 – Element Materials Technology Ltd.’s credit facilities made its way into the secondary market on Monday, with the U.S. first-lien term loan bid above its original issue discount.

Moving to the primary market, Imagine! Print Solutions LLC raised pricing on its first-and second-lien term loans, AGS revised the original issue discount on its term loan, MultiPlan Inc. modified pricing on its term loan B, and EagleClaw Midstream Ventures LLC and KMG Chemicals Inc. accelerated the commitment deadlines on their term loans.

Also, Brand Energy & Infrastructure Services, North American Bancard (NAB Holdings LLC), USIC Holdings Inc. and Ascensus Inc. released price talk with launch, and American Addiction Centers (AAC Holdings Inc.), DHX Media Ltd., Switch Ltd., Coveris Holdings SA and Zelis Healthcare joined this week’s primary calendar.

Element starts trading

Element Materials Technology’s $720 million seven-year first-lien term loan B (B1/B) freed to trade on Monday, with the debt quoted at par ¼ bid, according to a market source.

Pricing on the term loan is Libor plus 350 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, the discount was tightened from 99.5 and the call protection was extended from six months.

The company is also getting a £160 million seven-year first-lien term loan B (B1/B) priced at Libor plus 425 bps with a 0% floor and issued at par, after being revised during syndication from talk of Libor plus 450 bps with a discount of 99.5, and a €213.7 million seven-year first-lien term loan B (B1/B) priced at Euribor plus 325 bps with a 0% floor and issued at par, which was upsized during syndication from €204.2 million and flexed from talk of Euribor plus 350 bps with a discount of 99.5 to 99.75.

In addition, the company is getting a $100 million revolver (B1/B), a $50 million capex/acquisition facility (B1/B) and a privately placed second-lien term loan.

Element buying Exova

Proceeds from Element Materials Technology’s credit facilities will be used to help fund the acquisition of Exova Group plc and to refinance debt.

Bank of America Merrill Lynch and HSBC Securities (USA) Inc. are the mandated lead arrangers on the deal.

Closing is expected later this month.

Element Materials is a United Kingdom-based materials testing and product qualification testing provider. Exova is a testing, calibration and advisory services provider.

Imagine! flexes up

Switching to the primary market, Imagine! Print Solutions lifted pricing on its $375 million five-year covenant-light first-lien term loan (B2/B) to Libor plus 475 bps from Libor plus 400 bps and on its $110 million six-year covenant-light second-lien term loan (Caa2/CCC+) to Libor plus 875 bps from Libor plus 850 bps, a market source remarked.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

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

RBC Capital Markets LLC and Societe Generale are leading the $485 million of senior secured term loans that will be used to refinance an existing term loan B and fund a special dividend.

Oak Hill Capital Management LLC is the sponsor.

Imagine! is a Minneapolis-based provider of printed in-store marketing solutions.

AGS modifies OID

AGS tightened the original issue discount on its $450 million seven-year first-lien term loan to 99.75 from 99.5, a market source said.

As before, the term loan is priced at Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection for six months.

The company’s $480 million of credit facilities (B2/B+) also include a $30 million five-year revolver.

Allocations are expected on Tuesday morning, the source added.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance the company’s existing first-lien term loan, repay certain seller notes and to put cash on the balance sheet for general corporate purposes.

AGS is a Las Vegas-based designer and manufacturer of gaming products for the casino floor.

MultiPlan tweaked

MultiPlan changed the spread on its $3.2 billion term loan B due June 7, 2023 to Libor plus 300 bps from Libor plus 275 bps, and left the 25 bps step-down when consolidated first-lien debt to consolidated EBITDA is 3.75 times, 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Commitments/consents were scheduled to be due at noon ET on Monday, the source said.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

MultiPlan is a New York-based provider of health care cost management solutions.

EagleClaw moves deadline

EagleClaw accelerated the commitment deadline on its $1.25 billion seven-year first-lien term loan (B3/B+/BB) to 5 p.m. ET on Tuesday from Thursday, a market source said.

The term loan is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.35 billion in senior secured credit facilities also include a $100 million super-priority revolver.

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 shutting early

KMG Chemicals moved up the commitment deadline on its $550 million seven-year term loan B to 5 p.m. ET on Tuesday from Friday, a market source remarked.

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

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

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, including 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.

Brand Energy sets talk

Also in the primary market, Brand Energy & Infrastructure Services held its bank meeting on Monday, launching its $2,825,000,000 seven-year term loan at talk of Libor plus 375 bps with a 1% 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 $3,325,000,000 of senior secured credit facilities (B3/B) also include a $500 million five-year revolver.

Commitments are due at noon ET on June 15, the source said.

Goldman Sachs Bank USA, Barclays, Natixis, ING Capital, Credit Agricole and Societe Generale are leading the deal that will be used to help fund the acquisition of Safway Group from Odyssey Investment Partners.

Brand Energy, a portfolio company of Clayton, Dubilier & Rice, is a Kennesaw, Ga.-based provider of specialized services to energy, industrial and infrastructure customers. Safway is a Waukesha, Wis.-based provider of scaffolding and motorized aerial access solutions and insulation and coating services.

NAB discloses guidance

North American Bancard came out with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5 on its $640 million seven-year first-lien term loan (B) that launched with a bank meeting in the afternoon, a market source said.

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

Commitments are due at 5 p.m. ET on June 15.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to help fund the acquisition of Total Merchant Services Inc. and to refinance existing debt.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

USIC Holdings launches

USIC Holdings held its lender call, launching its $673 million covenant-light first-lien term loan (B2/B) due December 2023 at talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Friday, the source said.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing $633 million term loan down from Libor plus 375 bps with a 1% Libor floor and to add cash to the balance sheet

USIC is an Indianapolis-based provider of underground utility locating services.

Ascensus hosts call

Ascensus surfaced in the morning with plans to hold a lender call at 3 p.m. ET on Monday to launch a fungible $25 million covenant-light incremental first-lien term loan (B2/B+) due December 2022 priced at Libor plus 400 bps with a 1% Libor floor, a market source remarked.

After the call took place, it was announced that the incremental is being talked with an original issue discount of 99.5, the source continued.

The debt has 101 soft call protection through Aug. 3.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

American Addiction on deck

American Addiction Centers set a bank meeting for 2 p.m. ET in New York on Tuesday to launch $265 million of senior secured credit facilities, according to a market source.

The facilities consist of a $55 million revolver, and a $210 million six-year first-lien term loan talked with a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on June 20.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Closing is expected late this month.

American Addiction Centers is a Brentwood, Tenn.-based provider of inpatient and outpatient substance abuse treatment services.

DHX timing surfaces

DHX Media will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch its $510 million of credit facilities, a market source remarked.

The facilities consist of a $30 million revolver and a $480 million term loan B, the source added.

RBC Capital Markets LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the acquisition of the entertainment division of Iconix Brand Group Inc. and to refinance existing debt.

DHX is buying the entertainment division of Iconix, which includes an 80% controlling interest in Peanuts and 100% of Strawberry Shortcake, for $345 million, subject to a customary working capital adjustment. The remaining 20% interest in Peanuts will continue to be held by members of the family of Charles M. Schulz.

Closing is expected on or around June 30, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

DHX is a Halifax, Nova Scotia-based children’s content and brands company.

Switch joins calendar

Switch emerged with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch $950 million of credit facilities, according to a market source.

The facilities consist of a $450 million revolver and a $500 million covenant-light term loan B, the source said.

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs and J.P. Morgan Securities LLC are leading the deal.

Switch is a Las Vegas-based developer and operator of data centers.

Coveris coming soon

Coveris Holdings will hold a lender call at 10:30 a.m. ET on Wednesday to launch a $510 million first-lien term loan due June 2024 and a €402 million first-lien term loan due June 2024, a market source remarked.

Goldman Sachs Bank USA is leading the deal that will be used to extend existing term loan maturities from May 18, 2019.

Closing is expected in mid-June.

Coveris, a Sun Capital Partners Inc. portfolio company, is a Chicago-based manufacturer and distributor of packaging solutions and coated film technologies.

Zelis readies deal

Zelis Healthcare scheduled a bank meeting for 10 a.m. ET on Tuesday to launch $350 million of credit facilities (B+), a market source said.

The facilities consist of a $25 million revolver and a $325 million term loan B, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Zelis Healthcare, a Parthenon Capital Partners portfolio company, is a Bedminster, N.J.-based healthcare information technology company and provider of end-to-end healthcare claims cost management and payments solutions.

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