EG Group, INAP, Mediacom, Pharmaceutical Product, Las Vegas Sands, Alkermes break

By Sara Rosenberg

New York, March 23 – EG Group widened the original issue discount on its incremental euro term loan B and set the discount on its second-lien term loan debt at the tight end of talk, INAP (Internap Corp.) finalized the spread on its first-lien term loan at the high end of guidance and Mediacom Communications Corp. set pricing on its term loan N at the low side of talk, and then all of these deals freed to trade on Friday.

Other loan transactions to make their way into the secondary market during the session included Pharmaceutical Product Development LLC (Jaguar Holding Co. II), Las Vegas Sands LLC and Alkermes Inc.

Back in the primary market, Amneal Pharmaceuticals Inc. raised pricing on its term loan B, added a step-down and extended the call protection, and SouthernCarlson Inc. shifted some funds between its first-and second-lien term loans and updated pricing on the tranches.

Also, ABC Supply (American Builders & Contractors Supply Co. Inc.) launched a repricing transaction, and Adtalem Global Education Inc., International Car Wash Group and Townsquare Media Inc. emerged with new deal plans.

EG Group updated

EG Group changed the original issue discount on its €175 million incremental covenant-light term loan B (B2/B) due 2025 to 99 from 99.5 and left pricing on the tranche, as well as on a $1.7 billion incremental covenant-light term loan B (B2/B) due 2025 at Libor/Euribor plus 400 bps with a 0% floor, in line with the company’s existing term loan B’s, a market source said. The original issue discount on the U.S. incremental term loan B was unchanged at 99.5 and all of the incremental term loan B debt still has 101 soft call protection for six months.

Additionally, the company firmed the discount on its $490 million equivalent in U.S. and euro eight-year covenant-light second-lien term loan debt (Caa1/CCC+), split between a $245 million U.S. tranche and a $245 million equivalent euro tranche, at 99, the tight end of the 98.5 to 99 talk, the source continued.

Pricing on the U.S. second-lien term loan is still Libor plus 800 bps with a 1% Libor floor, pricing on the euro second-lien term loan is still Euribor plus 775 bps with a 1% floor, and both tranches still have call protection of 102 in year one and 101 in year two.

The company is also getting a $150 million incremental multi-currency revolver (B2/B) due 2022 priced at Libor/Euribor plus 300 bps with a 0% floor.

EG Group starts trading

With final terms in place, EG Group’s bank debt was able to allocate and break for trading on Friday, and the U.S. incremental term loan B was quoted at 99¾ bid, par 1/8 offered while the U.S. second-lien term loan was quoted at 99½ bid, par offered, a trader added.

Global coordinators on the deal are Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank. Bank of America is the physical bookrunner for the U.S. term loan B, and Bank of America, Barclays and Morgan Stanley are the physical bookrunners for the euro term loan B and second-lien loan.

Proceeds will be used to fund the acquisitions of Kroger Co C-Stores, a portfolio of 762 sites across 18 U.S. states, for $2.15 billion and NRGValue, a network of 97 retail Esso sites in the Netherlands.

EG Group is a European independent forecourt/convenience-store retailer.

INAP firms, frees up

INAP set pricing on its $433.5 million first-lien term loan at Libor plus 575 bps, the wide end of the Libor plus 550 bps to 575 bps talk, a market source remarked.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 700 bps with a 1% Libor floor.

After terms finalized, the loan made its way into the secondary market and levels were quoted at par ½ bid, 101½ offered, another source added.

Net debt to adjusted EBITDA is 5 times and total debt to adjusted EBITDA is 5.1 times.

INAP is an Atlanta-based provider of IT Infrastructure solutions.

Mediacom finalized, trades

Mediacom Communications firmed pricing on its $900 million secured term loan N (BB+) due 2024 at Libor plus 175 bps, the low end of the Libor plus 175 bps to 200 bps talk, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, according to a market source.

The term loan N then began trading, with levels seen at par bid, par 3/8 offered, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance a term loan K and for general corporate purposes.

Mediacom is a Mediacom Park, N.Y.-based cable operator.

Pharmaceutical Product breaks

Pharmaceutical Product Development’s $3,161,000,000 covenant-light first-lien term loan (Ba3/B) due Aug. 18, 2022 began trading, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 1% Libor floor.

Pharmaceutical Product Development is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

Las Vegas Sands tops pars

Las Vegas Sands’ $2,183,000,000 term loan B due March 2025 hit the secondary market too, with levels seen at par ¼ bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan firmed at the tight end of the 99.75 to par talk and the maturity date was pushed out from March 2024.

Bank of Nova Scotia, Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third Bank and Goldman Sachs Bank USA are leading the deal. Scotia is the administrative agent.

The loan will be used to reprice and extend an existing term loan down due March 2024 from Libor plus 200 bps with a 0% Libor floor.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Alkermes hits secondary

Alkermes’ $284,250,000 five-year senior secured covenant-light term loan B began trading, with levels seen at par ¼ bid, par ¾ offered, according to a trader.

The term loan is priced at Libor plus 225 bps with a 0% Libor floor and was sold at an original issue discount of 99.75. The tranche has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B-1.

Closing is expected on Monday.

Alkermes is a Dublin-based biopharmaceutical company.

Amneal reworks loan

Returning to the primary market, Amneal Pharmaceuticals lifted pricing on its $2.7 billion seven-year term loan B (B1/BB-) to Libor plus 350 bps from talk in the range of Libor plus 300 bps to 325 bps, added a step-down to Libor plus 325 bps when net first-lien leverage is 3 times, and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the MFN was changed to 50 bps for life from 75 bps with a sunset of six months, the source said.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.5.

Recommitments were due at 2 p.m. ET on Friday, the source added.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance outstanding debt at Amneal and Impax Laboratories Inc. in connection with the acquisition of Impax in an all-stock transaction.

Closing is expected in the first half of this year, subject to customary conditions, including receipt of regulatory approvals and Impax shareholder approval.

Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer. Impax is a Hayward, Calif.-based specialty pharmaceutical company.

SouthernCarlson reworked

SouthernCarlson lifted its first-lien term loan to $235 million from $225 million, firmed pricing at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99.5 unchanged, a market source said.

Furthermore, the company decreased its second-lien term loan to $75 million from $85 million, raised pricing to Libor plus 875 bps from talk in the range of Libor plus 800 bps to 825 bps and changed the discount to 98.5 from 99, the source continued. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $345 million of credit facilities also include a $35 million revolver (B2/B+).

Recommitments were due at 2 p.m. ET on Friday, the source added.

KKR Capital Markets is leading the deal that will be used to refinance existing debt and fund a dividend.

SouthernCarlson is an Omaha-based distributor of fastening and packaging materials, tools and related building materials.

ABC Supply launches

ABC Supply launched on Friday a $1,861,000,000 covenant-light term loan B (B1/BB+) due Oct. 31, 2023 at talk of Libor plus 200 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 3 p.m. ET on Wednesday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

ABC Supply is a Beloit, Wis.-based building products distributor.

Adtalem joins calendar

Adtalem Global Education set a bank meeting for 1:30 p.m. ET in New York on Monday to launch a $300 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, BMO Capital Markets and Northern Trust are leading the deal that will be used to refinance existing revolver borrowings and fund cash to the balance sheet for general corporate purposes.

Adtalem is a Chicago-based provider of educational services with a focus on Medical & Healthcare, Professional Education, and Technology & Business.

International Car on deck

International Car Wash scheduled a lender call for 11 a.m. ET on Tuesday to launch a fungible add-on first-lien term loan B and a repricing of its existing $475 million first-lien term loan B, a market source said.

Goldman Sachs Bank USA, Barclays, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal.

International Car Wash is a United Kingdom-based car wash operator.

Townsquare coming soon

Townsquare Media will hold a lender call at 10 a.m. ET on Monday to launch a repricing of its term loan, a market source remarked.

RBC Capital Markets LLC is leading the deal.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

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