Tekni-Plex tightens pricing; Greenhill upsizes first-lien; CPA Global pulls discount

By Paul A. Harris

Portland, Ore., Oct. 5 – In Thursday's leveraged loan market Tekni-Plex Inc. tightened pricing on the dollar and euro trances of its term loan.

Greenhill & Co. Inc. upsized its five-year first-lien term loan B to $350 million from $300 million, and cut the spread.

And CPA Global withdrew offers of 50 cent discounts on the dollar and euro tranches of its loan.

Tekni-Plex tightens

Tekni-Plex tightened pricing on its $413 million seven-year covenant light first lien term loan and $295 million equivalent euro-denominated seven-year covenant-light first lien term loan, according to a market source.

The U.S. term loan is now priced with a leverage step-down structure beginning at Libor plus 325 basis points and stepping town to Libor plus 300 bps with 0.75-times deleveraging. Previous talk was Libor plus 350 bps.

The euro loan is also priced with a step-down structure beginning at Euribor plus 350 bps, stepping down to Euribor plus 325 bps with 0.75-times deleveraging. Previous talk was Euribor plus 375 bps.

Both tranches are set to price at par, removing the discounts from earlier talk that had them pricing at 99.5.

Recommitments were due on Thursday.

The Libor floors are unchanged: 1% for the dollar loan, 0% for the euro loan.

Both loans have 101 soft call protection for six months.

The company’s $768 million of credit facilities also include a $60 million ABL revolver.

A bank meeting for European investors will take place in London on Wednesday.

Credit Suisse Securities (USA) LLC, Jefferies LLC and BMO Capital Markets are the joint lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Genstar Capital from American Securities.

Greenhill upsizes

Greenhill upsized its five-year first-lien term loan B to $350 million from $300 million and cut the spread to Libor to 375 basis points from 400 bps, according to a market source.

With the repricing comes a trim in the discount to 99.5 from 99.

The 1% Libor floor, 101 soft call protection for 18 months and amortization of 5% in year one and 10% in years two, three, four and five, are all unchanged.

Commitments were due on Thursday.

The credit facilities (Ba2/BB) also include a $20 million three-year revolver.

Goldman Sachs Bank USA is the lead bank on the deal.

Proceeds will be used with equity sale proceeds to repay all existing debt and repurchase up to $235 million of common stock.

CPA pulls discount

CPA Global (Capri Acquisitions Bidco Ltd.) withdrew offers of 50 cent discounts on its $830 million seven-year first-lien term loan and €250 million seven-year first-lien term loan, according to a market source.

Both are set to price at par, versus previous price talk of 99.5.

The term loans are talked at Libor/Euribor plus 325 basis points with a 0% floor. Both term loans have 101 soft call protection for six months.

The company’s credit facilities also include an £80 million revolver.

Commitments were due Thursday.

Jefferies LLC and Nomura are the arrangers on the deal, with Jefferies left on the U.S. loan and Nomura left on the euro loan.

Proceeds will be used to help fund the buyout of the company by Leonard Green Partners LP and Partners Group Administration Services AG from Cinven.

Other funds for the transaction will come from €410 million in pre-placed eight-year senior unsecured floating-rate notes.

Closing is subject to customary regulatory approval.

Plastipak shaves spread

Plastipak Holdings Inc. trimmed spread talk on its $650 million seven-year covenant-light term loan B (Ba3/BB-) by 50 basis points, to Libor plus 275 bps from Libor plus 325 bps, according to a market source.

Timing on the deal was moved forward, with commitments due on Thursday. The previous deadline was Friday.

The 1% Libor floor remains unchanged, as does the original issue discount of 99.5.

The term loan B has 101 soft call protection for six months, amortization of 1% per annum, and an excess cash flow sweep of 50% with reductions to 25% and 0% when senior secured net leverage is less than 2.75 times and less than 2.25 times, respectively.

Wells Fargo Securities LLC is the left lead arranger on the deal.

Proceeds will be used to partially redeem Goldman Sachs’ $650 million equity stake and to refinance existing debt.

Vantage price talk

Vantage Specialty Chemicals Inc. set price talk in its $710 million of senior secured credit facilities, according to a market source.

A $465 million seven-year first-lien term loan (S&P: B-) is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor at 99. The tranche features 1% annual amortization and has a 101 soft call for six months.

A $170 million eight-year second-lien term loan (S&P: CCC) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor at 98.5. It features hard calls at 102, then 101 in years one and two, respectively.

The deal also features a $75 million revolver.

Commitments are due Oct. 19.

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Jefferies LLC are the leads.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital LLC from the Jordan Co. LP.

Duff & Phelps tightens

Duff & Phelps Corp. tightened the spread on its $850 million seven-year senior secured first-lien term loan B (B2/B) to Libor plus 325 basis points, according to a market source.

Price talk was Libor plus 375 bps to 400 bps.

The reoffer price increased to 99.75 from 99.5

The deal retains its 1% Libor floor and 101 soft call protection for six months.

Commitments were due on Thursday.

The company’s $950 million of credit facilities also include a $100 million five-year ABL revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Bank of America Merrill Lynch are the lead banks on the deal.

Commitments are due on Oct. 6, the source added.

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

Versum prices

Versum Materials LLC priced its $570.7 million Libor plus 200 basis points senior secured covenant-light term loan B due Sept. 30, 2023 at par, according to a market source.

It priced on top of talk that specified a Libor plus 200 basis points spread with a 25 bps step-down when total leverage is 2 times, a 0% Libor floor and a par issue price.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho, MUFG and Wells Fargo Securities LLC are the joint lead arrangers on the deal.

Proceeds will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

With the repricing, the company is modifying the term loan’s excess cash flow sweep, the source added.

Altice tightens spread

Altice Financing tightened the spreads on its $900 million and €300 million 8.25-year term loans to Libor and Euribor plus 275 basis points from 300 bps, according to a market source.

Commitments were due on Thursday.

Price talk remains 99.75.

The deal retains a 0% floor and has 101 soft call protection for six months.

Goldman Sachs, JPMorgan, Barclays, BNP Paribas, Credit Suisse and Morgan Stanley are the bookrunners on the deal, with Goldman the left lead on the U.S. piece and JPMorgan the left lead on the euro piece.

Proceeds will be used to refinance existing notes due in 2022.

Inovyn lender call

Inovyn Finance plc scheduled a lender call at 5 a.m. ET on Friday to launch the repricing of an upsized €930 million of bank debt, according to a market source.

The deal includes an upsized €829 million covenant-light term loan B due 2024, which amortizes at 1% annually, and features 101 soft call protection for six months. The loan is upsized from €689 million.

There is also a €101 million amortizing term loan A due 2021.

Commitments will be due at 9 a.m. ET on Oct. 12.

HSBC and JPMorgan are the global coordinators and physical bookrunners. JPMorgan is the agent.

In addition to repricing its loans, Inovyn plans to use proceeds to repay its 6¼% senior secured notes due 2021.

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