Media General, Tribune, Spencer Spirit break; Anchor Glass, Minerals Technologies revised

By Sara Rosenberg

New York, June 22 – Media General Inc.’s term loan B hit the secondary market during Monday’s session, with the debt bid right around its issue price, and Tribune Media Co. and Spencer Spirit began trading as well.

Over in the primary market, Anchor Glass Container Corp. lowered pricing on its term loan, added a step-down and tightened the original issue discount, and Minerals Technologies Inc. moved some funds between its term loan B and fixed-rate loan, updated issue prices on the tranches and set pricing on the fixed-rate debt at the wide end of talk.

In addition, Hamilton Lane Advisors LLC released price talk on its term loan with launch, and OCI Beaumont LLC and CGG Holding (U.S.) Inc. joined this week’s primary calendar.

Media General starts trading

Media General’s $1,666,000,000 covenant-light term loan B due July 2020 broke for trading on Monday, with levels quoted at par bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 300 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

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

RBC Capital Markets is the lead bank on the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Media General is a Richmond, Va.-based local television broadcasting and digital media company.

Tribune tops OID

Tribune Media’s roughly $2.38 billion term loan B freed up too, with levels seen at 99 7/8 bid, par 1/8 offered, according to a trader.

The term loan is priced at Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for one year.

Recently, pricing on the B loan finalized at the wide end of the Libor plus 275 bps to 300 bps talk, and the call protection was extended from six months.

Proceeds will be used to reprice an existing term loan B from Libor plus 300 bps with a 1% Libor floor. With the repricing, the existing loan is being paid down to roughly $2.38 billion with proceeds from a $1.1 billion senior unsecured notes offering that was upsized last week from $1 billion.

J.P. Morgan Securities LLC is leading the deal for the Chicago-based owner of television and digital properties.

Spencer Spirit frees up

Spencer Spirit’s $110 million incremental six-year first-lien term loan also began trading, with levels quoted at 99¾ bid, par ½ offered, a source remarked.

Pricing on the loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The company is also getting a $135 million privately placed 6.5-year second-lien term loan that is priced at Libor plus 825 bps with a 1% Libor floor, and is non-callable for one year, then at 102 in year two and 101 in year three.

Spencer lead banks

Credit Suisse Securities (USA) LLC, Guggenheim and Wells Fargo Securities LLC are leading Spencer’s loans, with Credit Suisse the left lead on the first-lien debt, Guggenheim the left lead on the second-lien debt and Wells Fargo the administrative agent on both tranches.

Proceeds will be used to refinance existing debt, reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor and redeem a minority interest in the company from ACON.

The borrowers are Spencer Gifts LLC and Spirit Halloween Superstores.

Spencer is an Egg Harbor Township, N.J.-based specialty retailer focused on lifestyle accessories and specialized Halloween merchandise.

Anchor Glass tweaks terms

Moving to the primary market, Anchor Glass trimmed the spread on its $465 million seven-year first-lien covenant-light term loan (B3/BB-) to Libor plus 350 bps from Libor plus 375 bps, added a step-down to Libor plus 325 bps and moved the original issue discount to 99.5 from 99, according to a market source.

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

Commitments were due at 5 p.m. ET on Monday, the source remarked.

Credit Suisse Securities and Barclays are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

Mineral Technologies reworked

Minerals Technologies raised its term loan B due May 2021 to $1,078,000,000 from $1,028,000,000 and set the issue price at par, the tight end of the 99.75 to par talk, a source remarked.

Pricing on the term loan B is still Libor plus 300 bps with a step-down to Libor plus 275 bps if net leverage is below 2.25 times starting in the second quarter after closing, and a 0.75% Libor floor, and there is still 101 soft call protection for six months.

Regarding the fixed-rate term loan, it was trimmed to $300 million from $350 million, pricing firmed at 4.75%, the high end of the 4.5% to 4.75% talk, and the issue price was revised to 99.75 from par, the source said. This tranche is still non-callable for one year, then at 102 in year two and 101 in year three.

JPMorgan is leading the deal that will be used to refinance/reprice an existing term loan B priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.5 times net total leverage and a 0.75% Libor floor.

Minerals Technologies is a New York-based developer, producer and marketer of specialty mineral, mineral-based and synthetic mineral products and related systems and services.

Hamilton Lane sets talk

Also on the new deal front, Hamilton Lane held its bank meeting on Monday afternoon, launching its $260 million seven-year senior secured term loan B with talk of Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on July 7 and closing is expected on July 9, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the buyback of equity interests, to refinance existing debt, to fund a distribution to equity holders and for general corporate purposes.

Hamilton Lane is a financial institution that provides discretionary and non-discretionary private equity asset management services.

CGG on deck

CGG Holding scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $350 million six-year senior secured term loan talked with a 1% Libor floor and 101 soft call protection for one year, according to a market source.

The spread and original issue discount talk are not yet available.

Commitments are due on July 10, the source said.

Credit Suisse Securities, BNP Paribas Securities Corp. and RBC Capital Markets are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

CGG is a Paris-based manufacturer of seismic equipment and a provider of geoscience services.

OCI readies add-on

OCI Beaumont emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a fungible $50 million add-on term loan talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount that is still to be determined, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Proceeds will be used for general corporate purposes.

OCI Beaumont is a Nederland, Texas-based ammonia and methanol production complex.

Alliance HealthCare closes

In other news, Alliance HealthCare Services Inc. completed its $30 million incremental first-lien term loan due June 3, 2019, a news release said.

The incremental term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the company’s existing $477 million first-lien term loan, and was sold at an original issue discount of 99.5.

Credit Suisse Securities led the deal that was used to repay revolver borrowings and add cash to the balance sheet.

Alliance HealthCare is a Newport Beach, Calif.-based provider of advanced outpatient diagnostic imaging and radiation therapy service.

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