Westinghouse Electric breaks; Electronics For Imaging, Corel, ERM deal updates surface

By Sara Rosenberg

New York, June 25 – Westinghouse Electric Co. (Brookfield WEC Holdings Inc.) increased the size of its incremental first-lien term loan and modified the original issue discount, and then the debt freed up for trading on Tuesday.

In more happenings, Electronics For Imaging Inc. modified spread talk on its first-and second-lien term loans to the wide end of prior guidance, and widened issue price talk on both tranches.

Also, Corel Corp. moved some funds between its first-and second-lien term loans, and revised original issue discount talk and call protection on the first-lien tranche, and ERM lowered spreads on its U.S. and euro first-lien term loans and adjusted issue price guidance.

Additionally, Anchor Packaging LLC released price talk on its first-lien term loan debt with launch, Belfor Holdings Inc. came to market with an add-on term loan B, and Output Services Group Inc. (OSG Billing Services) joined this week’s calendar.

Westinghouse tweaked, trades

Westinghouse Electric lifted its incremental first-lien term loan (B2/B/B+) due August 2025 to $330 million from $325 million and changed the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

The incremental term loan is still priced at Libor plus 350 basis points with a 25 bps step-up at more than 4.65x total net leverage and a 0.75% Libor floor, in line with pricing on the existing roughly $2,723,000,000 first-lien term loan.

Recommitments were due at noon ET on Tuesday and, later in the day, the incremental term loan began trading, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc., BMO Capital Markets, Barclays and Credit Agricole are leading the deal that will be used to refinance an existing second-lien term loan.

Westinghouse is a Pittsburgh-based provider of technology and infrastructure services to a nuclear reactor fleet.

Electronics changes emerge

Electronics For Imaging modified price talk on its $875 million seven-year first-lien term loan (B2/B-) to Libor plus 500 bps, from talk in the range of Libor plus 475 bps to 500 bps, and changed original issue discount talk to a range of 95 to 96 from 99, a market source remarked.

Also, the company revised price talk on its $225 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 900 bps, from talk in the range of Libor plus 875 bps to 900 bps, and widened discount talk to a range of 95 to 96 from 98, the source continued.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $1.2 billion of credit facilities also include a $100 million revolver (B2/B-).

Commitments are due at noon ET on July 1, extended from 5 p.m. ET on Thursday, the source added.

Electronics lead banks

RBC Capital Markets, KKR Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., BNP Paribas Securities Corp. and Societe Generale are leading Electronics For Imaging’s credit facilities, with RBC left on the first-lien loan and KKR left on the second-lien loan.

The new debt will be used with up to $690 million of equity to fund the buyout of the company by Siris Capital Group LLC for $37.00 per share in cash. The transaction is valued at about $1.7 billion.

Closing is expected by the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

Electronics For Imaging is a Fremont, Calif.-based technology company focused on the transformation to digital imaging from analog.

Corel reworks deal

Corel trimmed its seven-year covenant-lite first-lien term loan to $485 million from $550 million, modified original issue discount talk to a range of 95 to 96 from 99, and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, the Ottawa-based software company increased amortization on the first-lien term loan to 2.5% per annum in years one and two, and 5% per annum thereafter, from 1% per annum, paid quarterly, with the remainder due at maturity, and made some other documentation changes, the source continued.

The first-lien term loan is still priced at Libor plus 500 bps with a 0% Libor floor.

With the first-lien term loan downsizing, the privately placed second-lien term loan was raised to $200 million from $135 million.

The company’s $745 million of senior secured credit facilities also include a $60 million revolver.

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

Citigroup Global Markets Inc., KKR Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by KKR from Vector Capital, which is expected to close in early July.

ERM revised

ERM cut pricing on its $500 million seven-year covenant-lite first-lien term loan B (B1/B) and €180 million seven-year covenant-lite first-lien term loan B (B1/B) to Libor/Euribor plus 375 bps from Libor/Euribor plus 400 bps and changed original issue discount talk on the loans to a range of 99.5 to 99.75 from just 99.5, a market source remarked.

As before, the term loans have a 0% floor and 101 soft call protection for six months.

Commitments remain due at 5 p.m. ET on Wednesday, the source added.

The company is also getting a $175 million eight-year pre-placed covenant-lite second-lien term loan (Caa1/CCC+) that has a 0% Libor floor.

Citigroup Global Markets Inc. is the global coordinator and physical bookrunner on the deal that will be used to refinance existing credit facilities. HSBC, ING, J.P. Morgan Securities LLC and RBC Capital Markets are joint bookrunners.

ERM is a provider of environmental, health, safety, and risk consulting and sustainability related services.

Anchor sets guidance

Also in the primary market, Anchor Packaging held its bank meeting on Tuesday afternoon and, shortly before the event began, price talk was announced on its $320 million seven-year covenant-lite first-lien term loan (B2/B) and $70 million delayed-draw seven-year covenant-lite first-lien term loan (B2/B), a market source said.

The first-lien term loan debt is talked at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, the source added.

Included in the first-lien term loan is 101 soft call protection for six months.

Commitments are due on July 11.

The company’s $545 million of credit facilities also provide for a $60 million revolver (B2/B) and a $95 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Nomura, Antares Capital and Neuberger Berman are leading the deal that will be used to help fund the buyout of the company by the Jordan Co.

Anchor Packaging is a Ballwin, Mo.-based producer of polypropylene rigid takeout containers.

Belfor holds call

Belfor Holdings launched with a lender call at 11 a.m. ET a fungible $75 million add-on term loan B due April 2026 talked with an original issue discount of 99.75, according to a market source.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments are due at noon ET on July 2, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of a portfolio of residential service brands.

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

Output on deck

Output Services will hold a bank meeting at 10 a.m. ET on Thursday to launch about $497 million equivalent of term loans, a market source remarked.

The debt consists of a roughly $232 million equivalent Sterling-denominated incremental first-lien term loan due March 2024 and a roughly $265 million second-lien term loan due September 2024, the source added.

Barclays is leading the deal that will be used to take out the existing M&A financing and bring Communisis into the existing financing credit group.

Output Services is a Ridgefield Park, N.J.-based provider of billing and customer communications services.

© 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.