Unifrax down with refi; Dupont Performance, NEP tweak deals; Ameriforge moves deadline

By Sara Rosenberg

New York, Jan. 14 - Unifrax I LLC saw its term loan B retreat in the secondary market during Monday's session following news that the debt will be taken out with a refinancing transaction.

Moving to the primary, Dupont Performance Coatings made some changes to its credit facility, including lifting the size of the euro term loan, cutting coupons on all tranches and tightening term loan original issue discounts.

Also, NEP Broadcasting LLC reduced its second-lien term loan size, Ameriforge Group Inc. accelerated the commitment deadline on its deal and DigitalGlobe Inc. set timing on its credit facility, which is coming at a smaller amount than previously expected size as the company has decided to issue bonds as well.

Unifrax slides

Unifrax I LLC's term loan B dropped in trading on Monday as the company surfaced with plans to launch a new credit facility this week, according to a trader.

The term loan was quoted at par bid, 101 offered, down from 101 bid, 102 offered, the trader said.

The new credit facility will launch with a bank meeting on Wednesday and is comprised of $50 million revolver and a $400 million covenant-light term loan, another source remarked.

Proceeds from the $450 million deal will be used to refinance existing debt and help fund an acquisition.

Goldman Sachs & Co. is leading the transaction.

Unifrax is a Niagara Falls, N.Y.-based supplier of high-temperature insulation products.

Dupont revises deal

Over on the new deal front, Dupont Performance Coatings modified the size of its credit facility, reverse flexed pricing and is asking for U.S. commitments by 5 p.m. ET on Tuesday and euro commitments by noon p.m. GMT on Wednesday, according to a market source. The commitment deadline was moved up from 5 p.m. ET on Thursday.

Under the changes, pricing on the $2.3 billion seven-year covenant-light U.S. term loan was moved to Libor plus 375 basis points from Libor plus 425 bps and the original issue discount was revised to 99½ from 99, the source said. The 1.25% Libor floor and 101 soft call protection for one year were left unchanged.

Additionally, the euro term loan was upsized to €390 million from about €150 million, price talk was set at Euribor plus 400 bps and the discount price was tightened to 99½ from 99, the source continued.

At launch, this tranche was talked 25 bps wide of the U.S. term loan, which is still the case, but since U.S. term loan pricing moved down, so did the euro term loan pricing. There is still a 1.25% floor and 101 soft call protection for one year.

Dupont cuts revolver spread

Dupont Performance Coatings also reverse flexed the spread on its $400 million five-year revolver to Libor plus 375 bps from Libor plus 400 bps, the source remarked. The 100 bps upfront fee is unchanged.

And, with the changes to size and pricing, the company updated its incremental loan provision to $400 million from $600 million, plus an amount up to 4.25 times leverage, compared to 4 times previously, and 50 bps MFN, the source remarked.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the now $3.218 billion senior secured credit facility (B1/B+).

Dupont being acquired

Proceeds from Dupont Performance Coatings' credit facility, bonds and equity will fund the $4.9 billion purchase of the company by the Carlyle Group from DuPont.

As a result of the euro term loan size change, the company's bond offering was revised to €250 million and $750 million of notes, from €230 million and $1.1. billion. Pricing is expected mid-week.

Net senior secured leverage is 4.5 times, up from 4 times under the original structure. Net total leverage is still 5.6 times, the source added.

DuPont Performance Coatings, a Wilmington, Del.-based supplier of vehicle and industrial coating systems, expects its buyout to close this quarter subject to regulatory approvals.

NEP trims second-lien

NEP Broadcasting reduced its 71/2-year covenant-light second-lien term loan (Caa1/CCC+) to $140 million from a revised size of $150 million and an original size of $165 million, according to a market source, who said that the latest change was made because the company has more cash than initially expected, and therefore, needs less debt.

Pricing on the second-lien term loan is Libor plus 825 bps with a 1.25% Libor floor and an original issue discount of 99, and there is call protection of 103 in year one, 102 in year two and 101 in year three.

Last week, the spread on the second-lien loan was reduced from talk of Libor plus 875 and the discount was tightened from 98.

NEP first-lien terms

In addition to the second-lien loan, NEP is getting a $470 million covenant-light seven-year first-lien term loan (B1/B) that is priced at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 991/2, and includes 101 soft call protection for one year.

Earlier in syndication, the first-lien term loan was upsized from $455 million, the coupon was cut from Libor plus 425 bps and the discount was revised from 99.

The company's now $670 million senior secured credit facility also includes a $60 million five-year revolver (B1/B) that has a springing covenant.

Proceeds will back the company's already completed buyout by Crestview Partners from American Securities LLC.

Barclays, Morgan Stanley Senior Funding Inc. and GE Capital Markets Corp. are the joint lead arrangers on the first-lien debt, with Barclays the left lead, and Morgan Stanley and Barclays are leading the second-lien loan, with Morgan Stanley the left lead.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events.

Ameriforge shutting early

Ameriforge Group revised the commitment deadline on its covenant-light first- and second-lien term loans to Thursday from Jan. 22, according to a market source.

As before, the $350 million seven-year first-lien term loan (B1) is talked at Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 99, and the $150 million eight-year second-lien term loan (Caa1) is talked at Libor plus 775 bps with a 1.25% Libor floor and a discount of 98.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $582.5 million credit facility also includes an $82.5 million five-year revolver (B1).

Ameriforge acquired

Proceeds from Ameriforge's credit facility will be used to back its already completed buyout by First Reserve Corp. from Tanglewood Investments Inc.

Deutsche Bank Securities Inc., UBS Securities LLC, Goldman Sachs & Co. and RBC Capital Markets LLC are the lead banks on the deal.

First-lien leverage is around 3.4 times, and total leverage is around 4.9 times.

Ameriforge is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets.

DigitalGlobe readies launch

DigitalGlobe nailed down timing on the launch of its senior secured credit facility, scheduling a bank meeting for Tuesday morning, and the total deal size is coming at $700 million, instead of $1.2 billion as previously outlined in filings with the Securities and Exchange Commission, a market source said.

The facility consists of a $150 million five-year revolver that will be undrawn at closing and a $550 million seven-year term loan B, the source continued.

By comparison, SEC filings had the deal comprised of a $1.05 billion seven-year term loan and $150 million five-year revolver.

The lost term loan funds are being raised through a $500 million senior unsecured notes offering, the source explained.

Official price talk on the transaction is not yet available, but the filings had the term loan and revolver expected at Libor plus 500 bps, with the term loan having a 1.25% Libor floor and 101 soft call protection for one year.

DigitalGlobe lead banks

Morgan Stanley Senior Funding Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead arrangers on DigitalGlobe's credit facility.

Proceeds from the loan and notes will fund the acquisition of GeoEye Inc. for about $900 million and refinance about $1 billion of existing debt. GeoEye shareowners have the right, subject to proration, to elect either 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash, 100% of the payment in cash ($20.27) or 100% of the payment in stock (1.425 shares of DigitalGlobe common stock) per share.

Closing is anticipated by Jan. 31, conditioned on regulatory approval from the Federal Communications Commission and the National Oceanic and Atmospheric Administration. Shareowners of both companies have already approved the transaction, and antitrust clearance from the U.S. Department of Justice has been received.

DigitalGlobe is a Longmont, Colo.-based provider of commercial high-resolution earth imagery products and services. GeoEye is a Herndon, Va.-based source of geospatial information and insight.

© 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.