Dollar Tree, ConvaTec, CAbi break; Sonneborn, Sterling update deals; MRI moves up deadline

By Sara Rosenberg

New York, June 9 – Dollar Tree Inc.’s term loans hit the secondary market during Tuesday’s session, with the floating-rate term loan B seen trading above par, and deals from ConvaTec Inc. and CAbi freed up for trading as well.

Moving to the primary market, Sonneborn LLC finalized the spread on its repriced term loan at the low end of guidance, Sterling Holdings Ultimate Parent Inc. (SterlingBackcheck) shifted funds between its first- and second-lien term loans and updated pricing, and MRI Software LLC accelerated the commitment deadline on its credit facility.

Also, StandardAero, PDC Brands, Consolidated Precision Products Corp. (WPP CPP Holdings LLC) and Ravn Alaska disclosed price talk with launch, and Camin Cargo Control released original issue discount guidance on its loan.

Additionally, Endo International plc (Endo Luxembourg Finance Co. I Sarl and Endo LLC), Deltek Inc., LanguageLine Solutions (Language Line LLC), Lantheus Medical Imaging Inc., Anchor Glass Container Corp. and Nord Anglia Education Inc. joined this week’s new deal calendar.

Dollar Tree starts trading

Dollar Tree’s term debt broke for trading on Tuesday, with the $3.3 billion seven-year term loan B quoted at 100 1/8 bid, 100 3/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 275 basis points with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

The company is also getting a $650 million fixed-rate loan priced at 4.25%. This tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan B was downsized from $3.45 billion, and the issue price firmed at the tight end of the 99.75 to par talk, and the fixed-rate loan was upsized from $500 million.

JPMorgan and Wells Fargo Securities are leading the deal that will be used to reprice/refinance a $3.95 billion term loan B priced at Libor plus 350 bps with a 0.75% Libor floor.

Dollar Tree is a Chesapeake, Va.-based discount store operator.

ConvaTec frees up

ConvaTec’s $800 million term loan began trading too, with levels quoted at par bid, 100½ offered, a trader remarked.

Pricing on the U.S. term loan, as well as on a €755 million term loan, is Libor/Euribor plus 325 bps with a 1% floor. The U.S. loan was sold at an original issue discount of 99.75, and the euro term loan was issued at par. Both tranches have 101 soft call protection for six months.

During syndication, the spread on the term loans firmed at the tight end of the revised Libor/Euribor plus 325 bps to 350 bps talk and down from initial talk of Libor/Euribor plus 350 bps to 375 bps, the issue prices on the U.S. and euro term loans were tightened from 99.5.

The company’s $1.85 billion credit facility (Ba2), which is expected to close on Monday, also includes a $200 million revolver due 2020 priced at Libor plus 375 bps.

Goldman Sachs, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance an existing credit facility and senior secured notes.

ConvaTec is a Luxembourg-based medical products and technologies company.

CAbi tops OID

CAbi’s credit facility freed up as well, with the $100 million term loan seen at 99½ bid, 100½ offered, according to a trader.

Pricing on the term loan is Libor plus 475 bps, after flexing down from talk of Libor plus 500 bps to 525 bps due to strong demand, a source said. The term loan has a 1% Libor floor and 101 soft call protection for six months and was issued at a discount of 99 for new money.

The company’s $125 million four-year credit facility also includes a $25 million revolver.

BNP Paribas Securities Corp. is leading the deal that will be used with $35 million of mezzanine debt to refinance existing debt and fund a dividend.

CAbi is a Rancho Dominguez, Calif.-based designer of ready-to-wear women’s apparel.

Sonneborn firms spread

Switching to the primary market, Sonneborn set pricing on its $279.3 million first-lien term loan (B1) at Libor plus 375 bps, the tight end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to reprice the company’s existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

Sonneborn is a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons.

Sterling restructures

Sterling Holdings lifted its seven-year first-lien covenant-light tem loan (B1/B) to $330 million from $315 million, trimmed pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps and tightened the original issue discount 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

Also, the eight-year second-lien covenant-light term loan (Caa1/CCC+) was cut to $120 million from $135 million and the spread finalized at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $510 million credit facility also includes a $60 million five-year revolver (B1/B).

Recommitments were due by the close of business on Tuesday, the source added.

Goldman Sachs Bank USA, Nomura and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Broad Street Principal Investments from Calera Capital.

Sterling, formerly Sterling Infosystems, is a New York-based company focused on background checks.

MRI revises deadline

MRI Software changed the commitment deadline on its $240 million credit facility to noon ET on Friday from June 16, according to a market source.

The facility consists of a $15 million revolver (B2/B+), a $155 million six-year first-lien term loan (B2/B+) talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months and a $70 million seven-year second-lien term loan (Caa2/CCC+) talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used with $216 million of equity to fund the buyout of the company by GI Partners from Vista Equity.

Pro forma for the transaction, senior net leverage will be 4.5 times and total net leverage will be 6.6 times.

MRI Software is a Solon, Ohio-based provider of real estate property and investment management software solutions.

StandardAero reveals talk

Also in the primary, StandardAero held its bank meeting on Tuesday, launching its $925 million seven-year first-lien covenant-light term loan with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on June 22, the source added.

The company’s proposed $1,075,000,000 credit facility also includes a $150 million ABL revolver.

Jefferies Finance LLC, KKR Capital Markets and MCS Capital Markets are leading the deal that will be used with $485 million of notes to fund the buyout of the company by Veritas Capital from Dubai Aerospace Enterprise Ltd.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

PDC releases guidance

PDC Brands revealed price talk on its $280 million credit facility (B2/B) in connection with its morning bank meeting on Tuesday, according to a market source.

The $20 million five-year revolver is talked at Libor plus 400 bps with no Libor floor, and the $260 million seven-year first-lien covenant-light term loan B is talked at Libor 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments are due on June 23.

GE Capital Markets and RBC Capital Markets are leading the deal that will be used to fund an acquisition.

Senior and total leverage is 4.5 times.

PDC Brands, formerly known as Parfums de Coeur, is a Stamford, Conn.-based beauty, personal care and wellness company.

Consolidated Precision launches

Consolidated Precision Products held a lender call in the morning to launch $727 million in term loans split between a $529 million first-lien term loan due 2019, a $65 million new money add-on first-lien term loan due 2019 and a $133 million second-lien term loan due 2021, a market source remarked.

The first-lien term loan and add-on loan are talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor and 101 hard call protection through October 2015, the source continued.

The add-on term loan is offered at an original issue discount of 99.5, and the first-and second-lien term loans are offered at par.

Commitments are due on June 17.

UBS AG is leading the deal that will reprice existing debt and repay some second-lien borrowings.

Consolidated Precision Products is a Cleveland, Ohio-based manufacturer of highly engineered components and subassemblies primarily for the commercial aerospace and defense markets.

Ravn proposed terms emerge

Ravn Alaska launched with a bank meeting its $95 million six-year term loan, and announced talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on the debt, according to a market source.

The company’s $110 million credit facility also includes a $15 million five-year revolver.

BNP Paribas Securities Corp. and Keybanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by J.F. Lehman & Co.

Ravn is an Anchorage, Alaska-based airline company.

Camin discloses OID

Camin Cargo Control came out with original issue discount talk of 99 on its $150 million six-year term loan that launched with a bank meeting during the session, a source said.

Prior to meeting, it was revealed that the loan is talked at Libor plus 475 bps with a 1% Libor floor and 101 soft call protection for six months. Only the original issue discount had been unavailable.

Commitments are due on June 23, the source added.

Citizens Bank is leading the deal that will be used to help fund the buyout of the company by Metalmark Capital.

Camin Cargo Control is a Linden, N.J.-based provider of inspection and laboratory testing services to the petroleum industry.

Endo sets launch

Endo surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $3.5 billion of bank debt, for which commitments will be due on June 23, according to a market source.

The debt consists of a $2.5 billion seven-year term loan B and a $1 billion asset-sale bridge loan that will mature at the earlier of one year and the receipt of the AMS sale proceeds, the source said.

Deutsche Bank Securities Inc., Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the acquisition of Par Pharmaceutical Holdings Inc. from TPG in a transaction valued at $8.05 billion, including the assumption of debt. The purchase price will consist of about 18 million shares of Endo equity and $6.5 billion cash consideration to Par shareholders.

Closing is expected in the second half of this year, subject to regulatory approval in the United States and certain other jurisdictions, as well as other customary conditions.

Endo is a Dublin-based specialty pharmaceutical company. Par Pharmaceutical is a Woodcliff, N.J.-based developer, manufacturer and marketer of pharmaceuticals.

Deltek deal surfaces

Deltek set a bank meeting for Thursday to launch a $1.22 billion credit facility, according to a market source.

The facility consists of a $30 million revolver, an $840 million first-lien term loan and a $350 million second-lien term loan, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend to Thoma Bravo.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

LanguageLine joins calendar

LanguageLine Solutions will hold a bank meeting at 9:30 a.m. ET in New York on Thursday to launch a $690 million credit facility, a market source remarked.

The facility consists of a $50 million revolver, a $480 million six-year first-lien term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year and a $160 million seven-year second-lien term loan talked at Libor plus 975 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on June 25.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay existing debt.

LanguageLine is a Monterey, Calif.-based provider of interpretation and translation services.

Lantheus on deck

Lantheus Medical Imaging scheduled a bank meeting for 12:30 p.m. ET in New York on Wednesday to launch a $365 million seven-year first-lien covenant-light term loan that is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on June 23, the source said.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used with initial public offering proceeds and cash on hand to redeem $400 million of 9.75% senior notes due 2017 and to repay revolver borrowings.

Closing on the term loan is conditioned upon the closing of the common stock IPO.

Lantheus Medical is a N. Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

Anchor Glass readies loan

Anchor Glass set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $465 million seven-year first-lien covenant-light term loan that is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on June 24.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal, which will be used to refinance existing debt and fund a shareholder distribution.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products for various end-markets.

Nord Anglia coming soon

Nord Anglia Education plans to hold a lender call on Thursday to launch a fungible $200 million add-on term loan, according to a market source.

Pricing on the existing term loan is Libor plus 350 bps with a 1% Libor floor.

Along with the add-on term loan, the company will be launching an amendment to its existing credit facility, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the acquisition of six schools from Meritas LLC for $575 million in cash, subject to certain adjustments.

Closing is expected mid-year, subject to receipt of regulatory approvals and the satisfaction of other conditions.

Nord Anglia is a Hong Kong-based operator of premium schools.

FHC wraps at talk

In other news, FHC Health Systems Inc. (Beacon Health) completed syndication of its $265 million add-on first-lien term loan (B2/B) due Dec. 23, 2021 at talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, a source remarked.

The spread and floor on the add-on loan matches existing first-lien term loan pricing, and all of the first-lien term debt is getting 101 soft call protection for six months.

UBS AG, Goldman Sachs Bank USA, GE Capital Markets and Nomura are leading the add-on that will be used to fund a dividend.

Allocations on the loan went out on Monday, and the debt broke for trading at 99 bid, 99½ offered, which is where it was also being quoted on Tuesday, the source added.

FHC Health is a Boston-based managed behavioral health care company.

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