Platform Specialty, Arysta move around with acquisition news; Crown Holdings breaks atop OID

By Sara Rosenberg

New York, Oct. 20 – Platform Specialty Products Corp.’s term loan debt was softer in trading on Monday after the company announced that it is purchasing Arysta LifeScience Ltd., but Arysta’s first-lien term was stronger on the news.

In more secondary happenings, Crown Holdings Inc. (Crown Americas LLC) saw its term loan break with levels quoted above its original issue discount.

Moving to the primary market, AMAG Pharmaceuticals Inc. released timing on the launch of its term loan.

Platform slides, Arysta gains

Platform Specialty’s first-lien term loan and add-on term loan both dropped in the secondary market on Monday to 97 bid, 98 offered from 97¼ bid, 98¼ offered as the company said that is buying Arysta LifeScience, a Tokyo-based provider of crop services, and that funds for the transaction are expected to come from a combination of debt, convertible equity, equity and cash, according to a trader.

Meanwhile, Arysta’s first-lien term loan rose to 99¾ bid, par ¼ offered from 99¼ bid, 99¾ offered with the announcement, another trader said.

The debt commitment for the roughly $3.51 billion purchase of Arysta from the Permira funds consists of $1.6 billion of first-lien incremental term loans and $750 million of senior unsecured bridge loans, but the company revealed in an 8-K filed with the Securities and Exchange Commission that it may seek a number of alternative financings in lieu of or in combination with the debt commitment, including equity offerings, debt offerings, seller financing and other borrowings under its existing credit facility.

Barclays, Credit Suisse Securities (USA) LLC, Nomura Securities International LLC and UBS AG are leading the debt for the Miami-based specialty chemicals company.

Closing on the acquisition is expected in the first quarter of 2015, subject to regulatory approval.

Crown hits secondary

Also in trading, Crown Holdings’ $675 million seven-year senior secured covenant-light term loan B (Baa3/BB+) freed up, with levels quoted at 99 5/8 bid, par 1/8 offered, a trader said.

Pricing on the term loan is Libor plus 325 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months, and 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.

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

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

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.

AMAG reveals timing

Switching to the primary, AMAG Pharmaceuticals came out with timing on the launch of its previously announced $340 million six-year senior secured first-lien term loan B, with the bank meeting for the transaction set for Thursday, a market source said.

Recent filings with the SEC had the term loan expected at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 call protection for one year, however, official price talk is not yet available, the source said.

Jefferies Finance LLC is leading the deal that will be used to help fund the acquisition of Lumara Health Inc. for $675 million, split between $600 million in cash and $75 million in stock, and additional contingent consideration of up to $350 million based on achievement of certain sales milestones.

Closing is expected in the fourth quarter, following termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and completion of financing.

AMAG is a Waltham, Mass.-based specialty pharmaceutical company. Lumara is a Chesterfield, Mo.-based pharmaceutical company specializing in women’s health.

Mattress Firm wraps

In other news, Mattress Firm Holding Corp. closed on its $845 million credit facility that includes a $125 million five-year ABL revolver and a $720 million seven-year covenant-light term loan (B1/B), a news release said.

Pricing on the term loan is Libor plus 425 bps with a step-down after six months to Libor plus 400 bps when net total leverage is 3 times and a 1% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, the spread on the term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk, the step-down was added, the call protection was extended from six months and the 18 month MFN sunset provision was removed.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and UBS AG led the deal that was used to fund the $425 million acquisition of Sleep Train Inc., a Rocklin, Calif.-based bedding specialty retailer, to finance bolt-on acquisitions and to refinance existing debt.

Mattress Firm, a Houston-based specialty bedding company, has net first-lien adjusted leverage and net total adjusted leverage of 3.3 times and lease adjusted leverage is 6 times.

© 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.