Sensata, American Airlines, Sage Automotive break; Metaldyne revised; Level 3 ups deadline

By Sara Rosenberg

New York, Oct. 8 – Sensata Technologies BV finalized the original issue discount on its incremental term loan at the midpoint of guidance and then freed up for trading on Wednesday, and American Airlines Inc. and Sage Automotive Holdings Inc. emerged in the secondary as well.

In more happenings, Metaldyne LLC lifted the size of its term loan B as its bond offering was downsized, and Level 3 Financing Inc. accelerated the commitment deadline on its term loan B.

Furthermore, Crown Holdings Inc. (Crown Americas LLC) and Kellermeyer Bergensons Services LLC released price talk with launch, and Bluestem Brands Inc. disclosed timing on its term loan.

Sensata sets OID, trades

Sensata firmed the original issue discount on its $600 million seven-year incremental term loan (Baa3/BBB) at 99¼, the midpoint of the 99 to 99½ talk, according to a market source, who said pricing was unchanged at Libor plus 275 basis points with a 0.75% Libor floor and the 101 soft call protection for six months was left intact.

Recommitments were due by noon ET on Wednesday and then the deal broke for trading with levels seen at 99½ bid, par offered, sources remarked.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Goldman Sachs Bank USA are leading the deal that will be used with $400 million of senior notes and cash on hand to fund the $1 billion acquisition of Schrader International from Madison Dearborn Partners LLC and refinance existing Schrader debt.

Senior secured leverage is 1.7 times, total leverage is 4.1 times and net total leverage is 3.9 times.

Closing is expected in the fourth quarter, subject to regulatory approval.

Sensata is a supplier of sensing, electrical protection, control and power management services. Schrader is a Denver-based manufacturer of sensing and valve products for the automotive and industrial segments.

American Airlines frees up

American Airlines’ credit facility began trading too, with the $750 million seven-year term loan B quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 350 bps with a 25 bps step-down if the corporate rating is Ba3/BB- or better. There is a 0.75% Libor floor and 101 soft call protection for six months and the debt was sold at an original issue discount of 99¼.

Recently, pricing on the B loan firmed at the high end of the Libor plus 325 bps to 350 bps talk, the step-down was added and the discount was tightened from 99.

The Fort Worth-based airline company’s $1.15 billion secured credit facility (Ba2/BB-/BB+), which also includes a $400 million five-year revolver, will be used for general corporate purposes.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Sage Automotive breaks

Sage Automotive Holdings’ credit facility started trading as well, with the $155 million six-year first-lien term loan (B2/B) quoted at 99 3/8 bid, 99 7/8 offered and the $35 million seven-year second-lien term loan (Caa1/CCC+) quoted at 99½ bid, a market source said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $155 million and the second-lien term loan was downsized from $40 million.

The company’s $220 million credit facility also includes a $30 million revolver.

UBS AG and Nomura are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital from the Gores Group.

Sage is a Greensville, S.C.-based supplier of high-performance specialty fabric materials for automobiles.

Metaldyne upsizes

Back in the primary, Metaldyne raised its seven-year covenant-light term loan B to $1.35 billion from $1.25 billion and left pricing at Libor plus 350 bps with a step-down to Libor plus 325 bps after a qualifying initial public offering, a 1% Libor floor and an original issue discount of 99½, a market source said.

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

The company’s now $1.6 billion credit facility (Ba3/BB+) also includes a $250 million five-year revolver.

Recommitments are due at noon ET on Thursday, the source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Nomura, Keybanc Capital Markets LLC and RBC Capital Markets LLC are leading the credit facility that will be used with $600 million of notes, downsized from $700 million with the term loan upsizing, to refinance existing debt.

Metaldyne is a Plymouth, Mich.-based manufacturer of highly engineered metal-based components for engine, transmission, and driveline applications in the automotive and light truck markets.

Level 3 shutting early

Level 3 moved up the commitment deadline on its $1.5 billion senior secured term loan B (Ba3/NA/BB+) due in 2022 to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

Talk on the term loan is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 98½ to 99 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Jefferies Finance LLC and J.P. Morgan Securities LLC are leading the deal will help fund the purchase of tw telecom inc. for $10.00 cash and 0.7 shares of Level 3 common stock for each share of tw telecom common stock that is owned at closing. The stock-and-cash transaction is valued at $40.86 per share, or about $7.3 billion, including the assumption of roughly $1.6 billion of net debt as of March 31.

Closing is expected in the fourth quarter, subject to regulatory approvals, stockholder approvals at both companies and customary conditions.

Level 3 is a Broomfield, Colo.-based fiber-based communications services. tw telecom is a Littleton, Colo.-based provider of managed data, internet and voice networking services to businesses and large organizations.

Crown reveals talk

Crown Holdings held its bank meeting on Wednesday morning, launching its $675 million seven-year senior secured covenant-light term loan B (Baa3) with talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Also, the term loan has a ticking fee of half the spread from days 31 through 60, the full spread from days 61 through 90 and the full spread plus the Libor floor thereafter, the source said.

Commitments are due at 2 p.m. ET on Oct. 17.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BBVA Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are leading the deal.

Crown buying Empaque

Proceeds from Crown’s term loan will be used with cash on hand, additional borrowings under its senior secured credit agreement or through other means to fund the $1,225,000,000 acquisition of Empaque from Heineken NV.

The term loan B is expected to close on Oct. 24 and the acquisition is expected to close in the fourth quarter of 2014 or the first quarter of 2015, subject to competition authority approval and customary conditions.

Crown is a Philadelphia-based consumer packaging company. Empaque is a Monterrey, Mexico-based manufacturer of aluminum cans and ends, bottle caps and glass bottles for the beverage industry.

Kellermeyer discloses guidance

Kellermeyer Bergensons Services came out with price talk on its first- and second-lien term loans in connection with holding its bank meeting, according to a market source.

The $148 million first-lien term loan is talked in the Libor plus 450 bps area with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and the $65 million second-lien term loan is talked in the Libor plus 775 bps area with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two, the source said.

The company’s $243 million credit facility also includes a $30 million revolver.

Commitments are due on Oct. 22, the source added.

BNP Paribas Securities Corp. and CIT are leading the deal that will be used to help fund the buyout of the company by GI Partners from Kohlberg & Co. LLC.

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

Oceanside, Calif., and Maumee, Ohio-based Kellermeyer is a provider of integrated facilities management services to retail and grocery chains.

Bluestem timing surfaces

Bluestem Brands scheduled a bank meeting for 2:30 p.m. ET in New York on Tuesday to launch its previously announced $300 million first-lien term loan, a market source said.

Commitments are due on Oct. 28, the source added.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the loan that will be used to help fund the buyout of the company by Capmark Financial Group Inc. for about $565 million in cash, subject to various pre- and post-closing adjustments. Additional financing will come from cash on hand and an equal amount of cash invested in Capmark by affiliates of Centerbridge Partners LP through the exercise of warrants.

Along with the term loan, the Eden Prairie, Minn.-based online retailer of general merchandise expects to get a new $80 million asset-based credit facility led by U.S. Bank.

Closing is expected in the fourth quarter, subject to customary conditions, including compliance with the filing and waiting period requirements under the Hart-Scott-Rodino Act.

© 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.