R.R. Donnelley, Resideo break; J.D. Power, GoodRx, NEP revised; United Rentals accelerated

By Sara Rosenberg

New York, Oct. 4 – R.R. Donnelley & Sons Co.’s term loan freed up for trading on Thursday above its original issue discount, and Resideo Technologies Inc.’s term loan B emerged in the secondary market as well.

Meanwhile, in the primary market, J.D. Power upsized its first-lien term loan and set pricing at the high side of talk, and GoodRx increased the size of its first-lien term loan and finalized the spread at the low end of revised guidance, and decreased the size of its second-line term loan.

Also, NEP Group Inc. shifted some funds between its U.S. first-and second-lien term loans, tightened spreads and original issue discount talk on all of its term loan tranches, and added pricing step-downs to the first-lien debt, and United Rentals (North America) Inc. accelerated the commitment deadline on its term loan B.

In addition, Grocery Outlet Inc., BCP Raptor II LLC (Caprock Midstream), ProQuest LLC, Pixelle Specialty Solutions LLC and Jacobs Douwe Egberts disclosed price talk with launch, and CPM Holdings Inc. joined the near-term primary calendar.

R.R. Donnelley frees up

R.R. Donnelley’s $550 million covenant-light term loan B due January 2024 began trading on Thursday, with levels quoted by one trader at 99 7/8 bid, par 1/8 offered and by a second trader at 99 5/8 bid, par 1/8 offered.

Pricing on the term loan is Libor plus 500 basis points with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the term loan was upsized from $400 million, the call protection was extended from six months and the incremental debt cap was changed to 2 times from 3 times.

Bank of America Merrill Lynch is the left lead on the deal that will be used to repay debt and for general corporate purposes. Due to the recent term loan upsizing, the company is repaying revolver borrowings and increased its notes tender offer.

R.R. Donnelley is a Chicago-based communications provider enabling organizations to create, manage, deliver and optimize their multichannel marketing and business communications.

Resideo hits secondary

Resideo Technologies’ $475 million seven-year term loan B (Ba2/BBB-) broke as well, with levels seen at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The term loan has 101 soft call protection for six months.

During syndication, the spread on the term loan was reduced from initial talk of Libor plus 300 bps and the discount was modified from 99.5.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the spinoff of the company from Honeywell International Inc.

The company is also getting a $350 million term loan A and $400 million of notes for the transaction.

Resideo is a Morris Plains, N.J.-based provider of critical comfort and security solutions primarily in residential environments.

J.D. Power updated

Moving to the primary market, J.D. Power raised its first-lien term loan due September 2023 to $570 million from $541 million and firmed the spread at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

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

Recommitments were due at 1 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien loan down from Libor plus 425 bps with a 1% Libor floor, and, due to the upsizing, to repay a portion of the existing second-lien term loan.

J.D. Power is a Costa Mesa, Calif.-based consumer data and analytics company.

GoodRx tweaks deal

GoodRx lifted its seven-year first-lien term loan (B1/B+) to $545 million from $520 million and set pricing at Libor plus 300 bps, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Additionally, the first-lien term loan now has a step-down to Libor plus 275 bps at 4 times net first-lien leverage, changed from two steps to be agreed upon, the debt incurrence ratio was revised to 5.2 times due to increased net first-lien leverage from 5 times, and the excess cash flow sweep and asset sale sweep ratios under mandatory repayments were increased by 0.2 times to reflect the higher first-lien debt at close, the source said.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Previously in syndication, the discount on the first-lien term loan was tightened from 99.5.

With the first-lien term loan upsizing, the company scaled back its privately placed second-lien term loan to $200 million from $225 million.

GoodRx getting revolver

Along with the first-and second-lien term loans, GoodRx’s $785 million of credit facilities include a $40 million revolver (B1/B+).

Recommitments were due at 5 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

Goldman Sachs Bank USA, Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, KKR Capital Markets, Citizens and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of a significant minority stake in the company by Silver Lake Partners from existing owners Francisco Partners, Spectrum Equity and management.

GoodRx is a Santa Monica, Calif.-based operator of a prescription drug price comparison and coupon platform.

NEP reworked

NEP Group upsized its U.S. seven-year first-lien term loan to $1.13 billion from $1.04 billion, cut pricing to Libor plus 325 bps from Libor plus 350 bps, added a step-down to Libor plus 300 bps at 4 times first-lien net leverage and changed the original issue discount to 99.75 from 99.5, a market source said.

The company also trimmed pricing on its €397.1 million seven-year first-lien term loan to Euribor plus 350 bps from Euribor plus 375 bps, added a step-down to Euribor plus 325 bps at 4 times first-lien net leverage and revised issue price talk to a range of 99.75 to par from 99.5.

And, the eight-year second-lien term loan was downsized to $240 million from $330 million, the spread was reduced to Libor plus 700 bps from Libor plus 750 bps and the discount was changed to 99.5 from 99, the source continued.

As before, all of the term loans have a 0% floor, the first-lien term loans have 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

NEP lead banks

Barclays and J.P. Morgan Securities LLC are the bookrunners on NEP’s term loans, with Barclays the left lead on the first-lien tranches and JPMorgan the left lead on the second-lien loan.

Commitments for the U.S. debt are due at 10 a.m. ET on Friday and commitments for the euro debt are due at noon UK time on Friday, with allocations thereafter, the source added.

The new debt will be used to help fund Carlyle’s majority investment in the company and to refinance existing debt.

In connection with the loan changes, it was disclosed that Carlyle will contribute an incremental $35 million of equity in the form of cash to the balance sheet, to be used for general corporate purposes.

NEP is a Pittsburgh-based provider of outsourced live and broadcast production solutions.

United Rentals changes timing

United Rentals moved up the commitment deadline on its $1 billion seven-year covenant-light term loan B (Baa3/BBB-) to 5 p.m. ET on Thursday from noon ET on Friday, a market source said.

Talk on the term loan is Libor plus 175 bps to 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of Nova Scotia and MUFG are leading the deal that will be used to help fund the acquisition of BlueLine Rental from Platinum Equity for about $2.1 billion in cash.

Closing is expected in the fourth quarter.

United Rentals is a Stamford, Conn.-based equipment rental company. BlueLine is a provider of heavy industrial and construction equipment rentals.

Grocery discloses talk

Also on the new deal front, Grocery Outlet held its lenders’ presentation in the morning and announced price talk on its $725 million seven-year covenant-light first-lien term loan (B2/B-) and $150 million eight-year covenant-light second-lien term loan (Caa2/CCC), according to a market source.

The first-lien term loan is talked at Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101, the source said.

The company’s $975 million of senior secured credit facilities also include a $100 million five-year revolver (B2/B-).

Commitments are due at 5 p.m. ET on Oct. 18, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

BCP Raptor floats terms

BCP Raptor released talk of Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $690 million seven-year term loan B (B2/B/BB-) that launched with an afternoon bank meeting, a market source remarked.

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

Barclays is leading the deal that will be used with equity to fund the acquisition of Caprock Midstream Holdings by Blackstone Energy Partners from Energy Spectrum Capital and Caprock Midstream Management for $950 million plus pre-closing adjustments.

Closing is expected this year.

Caprock, which will be renamed BCP Raptor, is a Humble, Texas-based midstream operator.

ProQuest holds call

ProQuest held its afternoon call, launching its $705 million term loan B at talk of Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 11, the source said.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and Software as a Service solutions primarily for the academic community.

Pixelle reveals guidance

Pixelle Specialty Solutions came out with talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98.5 on its $220 million seven-year first-lien term loan B shortly before its morning bank meeting kicked off, a market source said.

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

The company’s $260 million of credit facilities (B2/B-) also include a $40 million revolver.

Commitments are due at 5 p.m. ET on Oct. 18.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the debt that will be used with equity to fund the acquisition of P.H. Glatfelter’s Specialty Papers Business Unit by Lindsay Goldberg for $360 million, including $320 million of cash proceeds and the assumption of about $40 million of retiree health care liabilities.

Closing is expected in the fourth quarter, subject to customary conditions.

Pixelle is a manufacturer of specialty paper products used in various end-markets.

Jacobs Douwe launches

Jacobs Douwe Egberts launched during the session its $772 million seven-year term loan B at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor and an original issue discount of 99.75, and its €401 million seven-year term loan B at talk of Euribor plus 200 bps with a 0.5% to 0.75% floor and a discount of 99.75, according to a market source.

Commitments are due on Oct. 18, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to amend and extend existing credit facilities.

Jacobs Douwe is a Netherlands-based coffee company.

CPM readies deal

CPM Holdings set a bank meeting for 1:30 p.m. ET on Tuesday to launch $790 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver, a $515 million seven-year first-lien term loan that has 101 soft call protection for six months, and a $225 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two, the source said.

Jefferies LLC, BMO Capital Markets, Goldman Sachs Bank USA, Rabobank and Stifel are leading the deal, which will be used to fund the buyout of the company by American Securities LLC.

CPM is a provider of proprietary process equipment, engineered system solutions and related aftermarket parts for the animal feed, oilseed processing, consumer food products, biomass, and engineered materials markets.

© 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.