CPG, Quikrete, Quebecor break; Air Medical, Kronos, Dayco Products reveal deal revisions

By Sara Rosenberg

New York, May 4 – CPG International’s extended term loan made its way into the secondary market on Thursday with levels quoted above its original issue discount, and Quikrete Co. and Quebecor Media Inc. freed to trade as well.

Switching to the primary market, Air Medical Group Holdings Inc. widened price talk on its add-on term loan B and tweaked the original issue discount guidance, and Kronos Inc. increased the size of its term loan B, set the spread at the high side of talk and added a leverage-based pricing step-down.

In addition, Dayco Products LLC raised pricing on its term loan, modified the original issue discount and extended the call protection, and Michael Baker International LLC withdrew its term loan B from market.

Furthermore, Macom Technology Solutions Holdings Inc. and Market Track released price talk with launch, and Array Canada Inc. joined this week’s primary calendar.

CPG starts trading

CPG International’s $603.1 million term loan (B2/B) due May 2024 broke for trading on Thursday, with levels seen at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor. Existing lenders were offered a 25 bps upfront fee and new money commitments were issued at an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

Jefferies Finance LLC is leading the deal that will be used to extend from September 2020 an existing term loan priced at Libor plus 375 bps with a 1% Libor floor.

CPG is a Skokie, Ill.-based manufacturer of highly engineered low-maintenance building materials.

Quikrete frees up

Quikrete’s $2,594,000,000 term loan B due November 2023 began trading on Thursday, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 275 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, a pricing step-down to Libor plus 250 bps based on leverage was removed from the transaction.

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

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

Quebecor tops par

Quebecor Media’s $338 million term loan freed to trade too, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan is Libor plus 225 bps with a 0% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan.

Quebecor is a Montreal-based telecommunications company.

Academy rises

In more secondary happenings, Academy Ltd. (Academy Sports + Outdoors) saw its term loan gain to 72½ bid, 74½ offered from 71 bid, 73 offered on Wednesday, according to a trader. The debt has been steadily climbing from last week’s levels in the high-60s area.

The trader suggested that investors may be starting to “pick over” some of the names in the secondary market that have been pushed down over the last few weeks, giving those names a boost in levels, and Academy fits into that category.

Academy is a Katy, Texas-based sports, outdoor and lifestyle retailer.

Air Medical revised

Moving to the primary market, Air Medical lifted price talk on its $750 million add-on covenant-light first-lien term loan B (B3) due April 28, 2022 to a range of Libor plus 375 bps to 400 bps from Libor plus 350 bps and modified the original issue discount talk to a range of 99.03 to 99.5 from a range of 99 to 99.5, according to a market source.

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

Recommitments were due at 4 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Jefferies Finance LLC, Nomura Securities International Inc. and Wells Fargo Securities LLC are leading the loan that will be used to fund the acquisition of Air Medical Resource Group, a South Jordan, Utah-based provider of air medical services, management, and experience in the air medical industry.

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

Kronos updates emerge

Kronos raised its term loan B to $2,344,000,000 from $2,294,000,000, firmed pricing at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and added a step-down to Libor plus 325 bps at 4.25 times net first-lien leverage, a market source remarked.

The term loan B still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Thursday and allocations are targeted for Monday, the source added.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance an existing term loan B priced at Libor plus 400 bps with a 1% Libor floor, and, due to the upsizing, for general corporate purposes.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

Dayco reworks loan

Dayco Products increased pricing on its $475 million seven-year senior secured covenant-light term loan (B2/B+) to Libor plus 500 bps from talk of Libor plus 375 bps to 400 bps, moved the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0% Libor floor.

Recommitments were due at 4 p.m. ET on Thursday, the source said.

Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to repay existing term loan and revolver borrowings.

Dayco is a Troy, Mich.-based manufacturer of highly engineered engine management systems.

Michael Baker pulled

Michael Baker removed its $450 million seven-year covenant-light term loan B (B2/B+) from the primary market as the tender offer for its $350 million 8.25% senior secured notes was canceled, according to a market source.

Talk on term loan was Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays was leading the deal.

Along with funding the tender offer, the term loan was going to be used to refinance an existing $140 million ABL revolver due 2018, repay an existing $8 million PMC subordinated notes due 2018, and repay about $4 million of certain HoldCo debt and preferred equity.

Michael Baker is a Pittsburgh-based provider of engineering, development, intelligence and technology solutions.

Macom reveals guidance

Also in the primary market, Macom Technology Solutions held its lender call on Thursday, launching its $688,461,733 senior secured covenant-light term loan B due May 2024 at talk of Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend an existing $588,461,733 term loan B due May 2021 and upsize the facility by $100 million for general corporate purposes.

Consents/commitments are due at 5 p.m. ET on May 11, the source added.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

Market Track sets talk

Market Track came out with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $225 million seven-year first-lien covenant-light term loan that launched with a morning bank meeting, according to a market source.

Commitments are due on May 18, the source said.

The company’s $350 million in credit facilities also include a $30 million revolver and a $95 million second-lien term loan that has been privately placed.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Chicago-based Market Track is a subscription-based provider of promotional and brand advertising data, analysis and insight services to advertising agencies, retailers and consumer product companies.

Array on deck

Array Canada surfaced with plans to hold a lender call at 12:30 p.m. ET on Friday to launch a fungible $40 million add-on term loan and discuss first quarter 2017 results, a market source remarked.

The loan is priced at Libor plus 500 bps with a 1% Libor floor, and original issue discount talk is still to be determined, the source added.

UBS Investment Bank is leading the deal that will be used for acquisition financing.

Array is a Toronto-based provider of retail merchandising displays and store fixtures to the cosmetics industry.

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