PrimeLine breaks; Micro Focus dips on repricing; Diamond, UPC, Penn Engineering launch

By Sara Rosenberg

New York, July 25 – PrimeLine Utility Services LLC saw its add-on term loan B free up for trading on Monday above its original issue discount price, and Micro Focus International plc’s term loan B headed lower with the launch of a repricing transaction.

In more happenings, Diamond Resorts International Inc. and UPC Financing Partnership released pricing guidance with launch, and Penn Engineering & Manufacturing Corp. came out with original issue discount talk on its tack-on term loan.

Also, Gulf Finance LLC, Engility Corp., Milk Specialties Global and CAMP Systems International joined this week’s new issue calendar.

PrimeLine tops OID

PrimeLine Utility Services’ fungible $160 million add-on term loan B began trading on Monday, with levels quoted at 100 1/8 bid, 100 5/8 offered by late day, according to a trader.

Pricing on the add-on term loan is Libor plus 550 basis points with a 1% Libor floor, in line with existing term loan B pricing, and it was sold at an original issue discount of 99.5. All of the term loan debt is getting 101 soft call protection for six months.

Last week, the add-on term loan B was upsized from $140 million, and the discount was tightened from 99.

BNP Paribas Securities Corp. is leading the deal that will be used to fund acquisitions.

Due to the recent term loan B upsizing, there will be less equity used and more cash on the balance sheet at closing.

PrimeLine Utility Services is a Seattle-based provider of end-to-end infrastructure solutions to electric, gas and telecommunications customers.

Micro Focus softens

Also in trading, Micro Focus’ term loan B fell to par bid, 100½ offered from 100½ bid, 101 offered in reaction to the launch of a repricing of the debt, a trader remarked.

The company held a call in the afternoon, approaching lenders with a $1.1 billion term loan B talked at Libor plus 375 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

The transaction will reprice the existing term loan B from Libor plus 425 bps with a 1% Libor floor, the trader added.

Commitments are due at noon ET on Friday.

Bank of America Merrill Lynch is leading the deal.

Micro Focus is a software company with U.S. headquarters in Rockville, Md., and U.K. headquarters in Newbury, Berkshire.

Burlington par bid

Burlington Stores Inc.’s repriced $1,117,000,000 term loan due 2021 was quoted at par bid, 100¼ offered on Monday, after allocating on Friday, a market source said.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the tight end of the Libor plus 275 bps to 300 bps talk.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are leading the deal that is being used to reprice the company’s existing term loan from Libor plus 325 bps with a 1% Libor floor.

Burlington Stores is a Burlington, N.J.-based discount retailer.

BWIC announced

A $121.7 million Bid Wanted In Competition emerged, with bids due at noon ET on Tuesday, according to a trader.

Some of the names in the portfolio are Allison Transmission Inc., Blackboard Inc., CommScope Inc., Flying Fortress Inc., HCA Inc., JBS USA LLC, Michaels Stores Inc., Nielsen Finance LLC, Select Medical Corp., Telesat Canada, Valeant Pharmaceuticals International Inc. and West Corp.

There are about 67 issuers in the BWIC, the trader added.

Diamond releases talk

Over in the primary market, Diamond Resorts came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $1.2 billion seven-year covenant-light term loan B that launched with a bank meeting on Monday, according to a market source.

The Las Vegas-based hospitality and vacation ownership company’s $1.3 billion senior secured credit facility (B1/B+) also includes a $100 million five-year revolver.

Commitments are due at 5 p.m. ET on Aug. 4, the source said.

Barclays, RBC Capital Markets LLC, Jefferies and Natixis are leading the deal that that will be used with an expected $600 million senior unsecured notes offering and about $1.06 billion of equity to fund the buyout of the company by Apollo Global Management LLC for $30.25 per share or about $2.2 billion.

Closing is subject to more than 50% of the company’s common shares being tendered, the receipt of certain regulatory approvals and other customary conditions.

Leverage on a secured basis is 2.7 times, and total leverage is 4 times, the source added.

UPC holds call

UPC Financing Partnership hosted a lender call at 11 a.m. ET to launch an $825 million eight-year covenant-light term loan AN with talk of Libor plus 300 bps with no floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 2 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the global coordinators on the deal and joint bookrunners with Scotiabank, Credit Suisse, HSBC and Nomura. Scotia is the administrative agent.

The new loan will be used to refinance $675 million of senior secured notes due 2021 and $75 million of senior secured notes due 2022.

UPC is a subsidiary of Liberty Global, a TV and broadband company.

Penn OID emerges

Penn Engineering held its lender call in the morning to launch its fungible $100 million U.S. dollar tack-on first-lien term loan due August 2021, and a few hours before the call kicked off, original issue discount talk on the debt was announced as 99.5, a market source said.

As previously reported, the tack-on term loan is priced at Libor plus 300 bps with a 1% Libor floor, in line with pricing on the existing $216 million U.S. dollar first-lien term loan due August 2021, and all of the debt is getting 101 soft call protection for six months.

The tack-on loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, the source added.

Commitments are due at 2 p.m. ET on Aug. 1.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Heyco Products Inc., a designer and manufacturer of molded wire protection products and stamped electrical components.

Penn Engineering is a Danboro, Pa.-based manufacturer of highly engineered specialty fasteners.

Gulf Finance joins calendar

Gulf Finance scheduled a lender presentation for 10 a.m. ET on Wednesday to launch a $1.2 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt at Penn Products Terminals LLC and Chelsea Petroleum Products I LLC, to make a distribution to the sponsor, and for general corporate purposes.

Engility readies deal

Engility surfaced with plans to hold a bank meeting at 2 p.m. ET in New York on Tuesday to launch $800 million in senior secured term loans, split between a $200 million term loan B-1 due 2020 and a $600 million term loan B-2 due 2023, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Milk Specialties on deck

Milk Specialties scheduled a bank meeting for 2 p.m. ET in New York on Tuesday to launch a $525 million credit facility (B2), a market source remarked.

The facility consists of a $50 million revolver and a $475 million seven-year covenant-light first-lien term loan talked at Libor plus 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due at noon ET on Aug. 9.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by American Securities LLC from Kainos Capital.

Milk Specialties is an Eden Prairie, Minn.-based human and animal nutrition company.

CAMP coming soon

CAMP Systems International is planning to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a new senior secured credit facility, according to a market source.

UBS Investment Bank is leading the deal that will be used to refinance the company’s existing holdco facility.

CAMP is a Merrimack, N.H.-based provider of aircraft maintenance tracking software and information services to business aviation.

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