Cash loans, synthetics finish flat on Friday; Endemol prices add-on; LBM sets lender call

By Paul A. Harris

Portland, Ore., April 10 – Cash loans and synthetics finished flat on Friday, market sources said.

The LCDX22 index of bank loan credit default swaps finished the session unchanged at 102½ bid, 103½ offered, according to a hedge fund manager.

The Longview Power LLC Libor plus 600-basis-points six-year term loan B, which allocated earlier in the week, was 100½ bid, 101½ offered heading into Friday’s close, well over its reoffer price but unchanged over the past two days, according to a trader.

The $300 million deal, upsized from $250 million, came at 99.

A dearth of new deals is putting pressure on loans in the secondary market, said the trader who agreed with other loan market watchers that if prices remain elevated a new wave of refinancings cannot be far behind.

“Some of the ripe ones are protected,” the trader pointed out, adding that the Dollar Tree Inc. seven-year term loan B, at 101¾ offered on Friday, has a six-month 101 soft call.

In the primary market Endemol priced an add-on to its first-lien term loan, and US LBM set a Monday lender call for a proposed $50 million term loan tack-on.

Endemol prices

Endemol priced an add-on to its first-lien term loan due Aug. 13, 2021 (existing ratings B1/B) on Friday, according to a market source.

A $25 million tranche priced with a 575-bps Libor spread atop a 1% Libor floor at 99.5.

A €25 million tranche priced at Euribor plus 600 bps atop a 1% Libor floor at 99.5.

As with the existing first-lien term loan due Aug. 13, 2021 the add-on paper comes with a 101 soft call that expires in August 2015.

Deutsche Bank was the sole bookrunner.

The deal is expected to close during the week of April 20.

Proceeds will be used for general corporate purposes, including strategic investments and acquisitions.

Endemol is an Amsterdam-based creator, producer and distributor of multiplatform entertainment.

LBM lender call

US LBM set a lender call at 10:30 a.m. ET on Monday to present to investors a proposed $50 million tack-on to its senior secured term loan due May 2020, according to a market source.

Commitments will be due on Thursday.

Credit Suisse Securities (USA) LLC is leading the deal.

Pricing is Libor plus 700 bps with a 1% Libor floor.

The issue price remains to be determined.

As with the existing loan the tack-on paper is callable at 102 through November 2015, with ensuing call premiums at 101.5 and 101.

The existing term loan is sized at $450 million.

The tack-on paper will become fungible with the original loan.

The borrower is a Green Bay, Wis.-based owner of building material distribution businesses.

Air Medical deadline

Commitments are due on Wednesday for the Air Medical Group Holdings Inc. $920 million seven-year term loan B (B2), according to a market source.

The deal is in the market with price talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99 to 99½.

The term loan has 101 soft call protection for six months, the source said.

Along with the term loan, the company’s $1,095,000,000 senior credit facility includes a $175 million ABL facility.

And, the company has also received a commitment for a $460 million unsecured bridge loan.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC, KKR Capital Markets LLC, Nomura Securities International Inc. and MCS Capital Markets LLC are the joint lead arrangers and bookrunners on the term loan B, and Bank of America Merrill Lynch, Morgan Stanley, Jefferies, KKR, Nomura and MCS are the joint lead arrangers on the ABL facility.

Proceeds will be used to help fund the buyout of the company by KKR from Bain Capital and Brockway Moran & Partners.

Closing is expected in the second quarter, subject to customary regulatory approvals.

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

© 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.