ProAmpac breaks; GTT accelerated; Senneca, Lumos, CityMD, United, AlixPartners set talk

By Sara Rosenberg

New York, April 24 – ProAmpac saw its add-on term loan make its way into the secondary market during Tuesday’s trading session, with levels quoted well above its issue price.

Meanwhile, in the primary market, GTT Communications Inc. moved up the commitment deadline on its U.S. first-lien term loan.

Also, Senneca Holdings, Lumos Networks (MTN Infrastructure TopCo Inc.), CityMD (WP CityMD Bidco LLC), United Airlines Inc. and AlixPartners LLP disclosed price talk with launch.

Furthermore, Jordan Health Services (BW NHHC HoldCo Inc.), EnergySolutions LLC and Evans Network of Cos. emerged with new deal plans.

ProAmpac frees up

ProAmpac’s fungible $225 million add-on term loan (B3/B) began trading on Tuesday, with levels quoted at 100¾ bid, 101¼ offered, according to a market source.

Pricing on the add-on loan matches existing term loan pricing at Libor plus 350 basis points with a step-down to Libor plus 325 bps at 4.25 times net first-lien leverage and a 1% Libor floor. The add-on was issued at par.

Last week, the issue price on the add-on term loan was tightened from talk of 99.5.

Antares Capital and RBC Capital Markets are the lead arrangers on the deal that will be used to make two near-term acquisitions. Barclays is the syndication agent.

ProAmpac is a Cincinnati-based flexible packaging manufacturer.

GTT tweaks timing

Moving to the primary market, GTT Communications accelerated the commitment deadline on its $1,331,000,000 seven-year covenant-light first-lien term loan (/B/BB) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The commitment deadline for the company’s €640 million seven-year covenant-light first-lien term loan (/B/BB) is unchanged at 5 p.m. GMT on Thursday, the source added.

Talk on the term loans is Libor/Euribor plus 325 bps to 350 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc., Goldman Sachs, Morgan Stanley Senior Funding Inc., Citizens Bank and ING are leading the deal that will be used to refinance existing debt and help fund the acquisition of Interoute for about €1.9 billion.

GTT Communications is a McLean, Va.-based cloud networking provider. Interoute is an operator of one of Europe’s largest independent fiber networks and cloud networking platforms.

Senneca launches

Senneca Holdings held its bank meeting on Tuesday and released price talk on its $240 million seven-year covenant-light first-lien term loan and $75 million delayed-draw first-lien term loan, according to a market source.

Talk on the term loans is Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.5 on a pro rata basis, the source said.

Included in the term loan is 101 soft call protection for six months.

The delayed-draw term loan has a two-year draw-down period and an unused fee of 0% for the first 60 days, 1% for days 61 to 120 and 2% thereafter.

Commitments are due on May 7, the source added.

The company’s $480 million of credit facilities also provide for a $40 million five-year revolver, a $100 million privately placed second-lien term loan and a $25 million privately placed delayed-draw second-lien term loan.

Antares Capital is the lead arranger on the deal that will be used to help fund the buyout of the company by Kohlberg & Co. Golub Capital is a joint lead arranger on the first-lien debt.

Senneca is a Cincinnati-based provider of made-to-order specialty commercial door systems and enclosures.

Lumos discloses talk

Lumos Networks launched on its morning call its $1,025,000,000 senior secured covenant-light term loan B (B2/B) due Nov. 17, 2024 at talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments/consents are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding, Goldman Sachs Bank USA and SunTrust Robinson Humphrey are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region.

CityMD sets guidance

CityMD held its lender call in the afternoon and a few hours before it kicked off, price talk on its $120 million incremental first-lien term loan (B-) due June 2024 and repricing of its existing $224.4 million first-lien term loan (B-) due June 2024 was announced, according to a market source.

The term loans are talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, the source said. Original issue discount talk on the incremental term loan is 99.75 and the repricing is offered at par.

All of the term loan debt is getting 101 soft call protection for six months.

Commitments are due on May 1.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey and ING are leading the deal.

The incremental loan will be used to fund a tuck-in acquisition and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

CityMD is an urgent care provider in the New York Metro area.

United Airlines repricing

United Airlines Inc. launched in the morning a $1,485,000,000 senior secured term loan (Baa3/BBB-) due April 1, 2024 at talk of Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on May 1, the source added.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. JPMorgan is the agent.

United Airlines is a Chicago-based airline operator.

AlixPartners floats OID

AlixPartners released original issue discount talk of 99.75 on its fungible $170 million incremental covenant-light term loan B (B+) due April 2024 that launched with a morning lender call, according to a market source.

The incremental term loan is priced in line with the existing term loan at Libor plus 275 bps with a 0% Libor floor.

Commitments are due at the end of the day on Monday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for a dividend recapitalization.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Jordan joins calendar

Jordan Health Services surfaced with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch $1.02 billion of senior secured credit facilities, according to a market source.

The facilities consist of an $80 million five-year revolver, a $650 million seven-year first-lien term loan, a $75 million seven-year delayed-draw for 24 months first-lien term loan, a $190 million eight-year second-lien term loan and a $25 million eight-year delayed-draw for 24 months second-lien term loan, the source said.

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

Jefferies LLC, Deutsche Bank Securities, RBC Capital Markets, CIT and Golub are leading the deal that will be used to fund the acquisition of Jordan Health by Kelso & Co. and Blue Wolf Capital Partners from Palladium Equity Partners LLC and subsequent merger with Great Lakes Caring Home Health and Hospice and National Home Health Care.

The combined company is expected to be the fifth largest home health care provider in the United States, with 221 locations across 15 states in the Northeast, Midwest, and Southern regions.

EnergySolutions readies loan

EnergySolutions scheduled a lender presentation for 11 a.m. ET on Wednesday to launch a $575 million senior secured term loan B (B), a market source said.

Morgan Stanley Senior Funding, Barclays and Deutsche Bank Securities are leading the deal that will be used to refinance existing debt and pay a dividend to shareholders.

EnergySolutions is a Salt Lake City-based nuclear services company.

Evans Network on deck

Evans Network of Network set a bank meeting for May 3 to launch $262.5 million of first-lien term loans split between a $238.5 million covenant-light term loan and a $24 million delayed-draw term loan, a market source remarked.

Antares Capital is leading the deal that will be used to refinance existing debt and fund a distribution to existing shareholders.

Evans Network, a Calera Capital portfolio company, is a Schuylkill Haven, Pa.-based asset-light, tech-enabled service provider to operators in the logistics industry.

CommerceHub wrapping soon

In other news, CommerceHub Inc. expects to complete syndication of its $290 million first-lien term loan this week, according to a market source.

The company’s $465 million of senior secured credit facilities also include a $30 million revolver and a $145 million privately placed second-lien term loan.

Jefferies, Golub and KKR Capital Markets are the underwriters on the first-lien loan that will be used with the second-lien loan and $642 million of equity to fund the company’s buyout by GTCR and Sycamore Partners for a total value of about $1.1 billion. Holders of CommerceHub’s common stock will receive $22.75 in cash per share.

Closing is expected following the shareholder vote scheduled for May 18, subject to customary conditions, including stockholder approval and regulatory approvals.

CommerceHub is an Albany, N.Y.-based distributed commerce network for retailers and brands.

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