Springer rises on merger news; Westmoreland tweaks deal; Charter NEX, PODS, Orica set talk

By Sara Rosenberg

New York, Jan. 15 – Springer Science + Business Media saw its term loan B-3 head higher in trading during Thursday’s market hours following news that the company is being merged with Macmillan Science and Education.

Over in the primary, Westmoreland Coal Co. increased the size of its add-on term loan, Charter NEX US Holdings Inc., PODS LLC and Orica Chemicals (Chemstralia Pty Ltd.) set talk with launch, and Curo Health Services revealed timing on the launch of its credit facility.

Springer Science gains

Springer Science + Business Media’s term loan B-3 strengthened in the secondary on Thursday after it was announced that the BC Partners-owned company is being combined with Holtzbrinck Publishing Group-owned Macmillan Science and Education, according to traders.

The term loan B-3 was quoted by one trader at 98¾ bid, 99½ offered, up from 98 bid, 98½ offered, and by a second trader at 98½ bid, par offered, up from 98 bid, 98½ offered.

At closing, the merged company will be under joint control of Holtzbrinck and BC Partners with Holtzbrinck retaining a 53% share.

Closing is expected in the first half of this year, subject to approval by various competition authorities.

Springer Science is a Berlin-based scientific, technical and medical publisher. Macmillan Science is a London-based science and education publisher.

Westmoreland upsizes

Moving to the primary market, Westmoreland Coal lifted the size of its add-on senior secured term loan to $75 million from $50 million, according to a source.

Commitments are due on Wednesday, the source said.

BMO Capital Markets is leading the deal that will be used to back the recently completed $34 million acquisition of Buckingham Coal Co. LLC, a conductor of underground room and pillar mining operations in Ohio.

Westmoreland is an Englewood, Colo.-based coal company.

Charter NEX discloses talk

Charter NEX held its bank meeting on Thursday, and with the event, talk on its $430 million senior secured credit facility was announced, according to a market source.

The $50 million five-year revolver (B1/B+) is talked at Libor plus 450 basis points with no Libor floor and an original issue discount of 99, while the $270 million seven-year first-lien covenant-light term loan B (B1/B+) is talked at Libor plus 475 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months. The $110 million eight-year second-lien covenant-light term loan (Caa1/CCC+) is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98½ and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Jan. 29.

Morgan Stanley Senior Funding Inc. and Guggenheim Corporate Funding LLC are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management LLP.

Closing is expected in early February.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

PODS reveals guidance

PODS came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $390 million seven-year first-lien covenant-light term loan B that launched with a bank meeting during the session, according to a market source.

Also, the company launched its $170 million eight-year second-lien covenant-light term loan with talk in the Libor plus 850 bps area with a 1% Libor floor, a discount of 98½, and hard call protection of 102 in year one and 101 in year two, the source remarked.

The $610 million senior credit facility also includes a $50 million revolver.

Commitments are due on Jan. 29 and closing is expected this quarter.

Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA are leading the deal, with Morgan Stanley left lead on the term loan B and Barclays left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Orica Chemicals launches

Orica Chemicals launched its A$500 million U.S. dollar equivalent term loan (B1) with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Blackstone from Orica Ltd. for A$750 million.

The sale includes the chemicals trading businesses in Australia, New Zealand and Latin America and the Australian Chloralkali manufacturing business. It also includes Bronson & Jacobs, which is a supplier to the food & nutrition and health & personal care industries in Australia, New Zealand and Asia.

Closing is expected this quarter, subject to Australian Foreign Investment Review Board and New Zealand Overseas Investment Office approval and other customary conditions.

Curo Health sets launch

Curo Health nailed down timing on the launch of its first-lien credit facility, scheduling a bank meeting for Tuesday, a market source said. Previously, the deal was labelled as early-2015 business.

As reported earlier, the first-lien facility consists of a $45 million revolver and a $380 million first-lien term loan.

Goldman Sachs Bank USA, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the buyout of the company by Thomas H. Lee.

Along with the revolver and first-lien term loan, the company’s new $545 million senior secured credit facility includes a $120 million second-lien term loan.

Curo Health is a Mooresville, N.C.-based provider of home health care and hospice services.

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