Energy & Exploration breaks; Ipreo adjusts loan size, pricing; Meritas moves deadline

By Sara Rosenberg

New York, July 15 – Energy & Exploration Partners LLC’s term loan B made its way into the secondary market on Tuesday with levels quoted right around the original issue discount.

Switching to the primary, Ipreo Holdings LLC increased the size of its term loan B while tightening the spread and original issue discount, and Meritas School Holdings LLC moved up the commitment deadline on its second-lien term loan.

Also, Endemol Holdings NewCo, Mallinckrodt International Finance SA, inVentiv Health Inc., Orbotech Ltd., United Site Services Inc. (USS Parent Holding Corp.) and Capsugel FinanceCo SCA released pricing guidance with launch.

Furthermore, Sterigenics International LLC (STHI Holding Corp.) timing and price talk surfaced, and Formula One Group (Delta 2 (Lux) S.a.r.l), Houston Fuel Oil Terminal Co. (formerly Buffalo Gulf Coast Terminals LLC) and U.S. Shipping Corp. emerged with new deal plans.

Energy & Exploration frees up

Energy & Exploration’s $775 million 4½-year senior secured term loan B began trading on Tuesday, with levels quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the loan is Libor plus 675 basis points with a 1% Libor floor and it was sold at an original issue discount of 98½ after widening the other day from 99. There is hard call protection of 102 in year one and 101 in year two.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Global Hunter Securities are leading the deal that will be used with $375 million of convertible subordinated notes due 2019 to fund the roughly $715 million acquisition of 18,300 net acres in Houston and Madison Counties, Texas, from TreadStone Energy Partners LLC, to refinance the company’s existing senior unsecured notes and to fund a portion of its 2014 and 2015 capital expenditure budget.

Closing is expected on July 22, but the effective date of the TreadStone acquisition is April 1.

Energy & Exploration is a Fort Worth-based exploration and production company.

Ipreo reworks deal

Moving to the primary, Ipreo Holdings lifted its seven-year term loan B to $345 million from $320 million, lowered pricing to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and moved the original issue discount to 99½ 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.

The company’s now $390 million senior credit facility (B1/B+) also includes a $45 million revolver.

Recommitments were due on Tuesday, the source continued.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are leading the deal.

Ipreo being acquired

Proceeds from Ipreo’s credit facility will be used to help fund its buyout by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP, although Kohlberg Kravis Roberts will retain a minority ownership stake in the business.

The company will also use $185 million of notes and equity to fund the buyout.

Due to the term loan upsizing, the notes offering was reduced from $200 million and the equity was reduced by $10 million, the source added.

Ipreo is a New York-based provider of new issuance software solutions across the equity, fixed income, municipal and syndicated loan markets.

Meritas shutting early

Meritas School accelerated the commitment deadline on its $80 million 6½-year second-lien term loan (Caa2/CCC+) to noon ET on Wednesday from Friday, a market source said.

Talk on the loan is still Libor plus 900 bps to 925 bps with a 1.25% Libor floor, an original issue discount of 98½, and call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to fund a dividend recapitalization.

The company is also seeking an amendment to its existing first-lien loan that will permit the second-lien loan and dividend, for which first-lien lenders are being offered a 15 bps amendment fee and the resetting of the 101 soft call protection for six months.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

Endemol sets guidance

Also in the primary, Endemol held its New York bank meeting on Tuesday, and with the event, price talk on its €1,035,000,000 equivalent term loans was announced, according to a market source. A bank meeting for European investors will take place in London on Wednesday.

The U.S. and euro first-lien term loan is talked at Libor/Euribor plus 475 bps, the GBP first-lien term loan is talked at Libor plus 525 bps and the €335 million equivalent second-lien U.S. and euro term loan is talked at Libor/Euribor plus 825 bps, with all tranches having a 1% floor and an original issue discount of 99, the source said.

All of the first-lien term loan debt, which totals €700 million equivalent, has 101 soft call protection for six months, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Endemol lead banks

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Credit Suisse and Nomura are leading Endemol’s term loans, with Deutsche the left lead on the first-lien debt and JPMorgan the left lead on the second-lien debt.

Commitments are due on July 29, the source added.

Proceeds will be used to help fund the recapitalization of the company by Apollo Global Management.

Endemol is an Amsterdam-based creator, producer and distributor of multiplatform entertainment.

Mallinckrodt discloses talk

Mallinckrodt came out with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its non-fungible $500 million senior secured covenant-light term loan (Ba2/BB+) due March 19, 2021 that launched with a bank meeting in the morning, a source remarked.

Commitments are due at 5 p.m. ET on July 29, the source added.

Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Questcor Pharmaceuticals Inc. for $30.00 per share in cash and 0.897 Mallinckrodt shares for each share of Questcor common stock. The transaction is valued at about $5.6 billion.

Closing is expected in the third quarter, subject to the approval of the shareholders of both companies and Hart-Scott-Rodino clearance.

Mallinckrodt is a Dublin-based pharmaceutical company. Questcor is an Anaheim Hills, Calif.-based biopharmaceutical company.

inVentiv details emerge

inVentiv Health held its conference call in the morning, at which point lenders were presented with a $445.7 million covenant-light term loan B-4 (B2) due May 2018 talked at Libor plus 625 bps with a 1.5% Libor floor, an offer price of 99¾ to par and 101 soft call protection for one year, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance term loans due in 2016 priced at Libor plus 600 bps with a 1.5% Libor floor.

Commitments are due at 5 p.m. ET on July 22, the source said.

Funds affiliated with Thomas H. Lee Partners LP and other existing investors will invest an additional $50 million of capital in the company in connection with the new term loan B-4.

inVentiv amending

inVentiv’s new term loan B-4 will allow for the exchange of existing senior notes for junior lien PIK notes and new money investors to purchase from the company $51.3 million of debt comprised of $25 million of junior lien PIK notes and $26.3 million of senior notes, and the company is asking to amend its existing credit facility to allow for these things as well.

Lenders are being offered a 5 bps amendment fee.

Closing is expected on July 24.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Orbotech launches

Orbotech launched during the session its $300 million six-year covenant-light term loan B with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount in the 99½ area and 101 soft call protection for six months, according to a 6-K filed with the Securities and Exchange Commission.

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to fund the roughly $370 million acquisition of SPTS Technologies Group Ltd. from Bridgepoint and others.

Closing is expected in the third quarter, subject to certain conditions.

Orbotech is a Yavne, Israel-based provider of yield-enhancing and production solutions, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components. SPTS is a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry.

United Site holds meeting

United Site Services’ bank meeting took place on Tuesday, at which time the company launched a $265 million credit facility (B1) comprised of a $50 million revolver, a $175 million term loan and a $40 million delayed-draw term loan, a source said.

The term debt, which is offered on a pro rata basis, is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, the source continued.

The delayed-draw term loan is available for two years with a ticking fee of half the spread for the first 180 days and the full spread thereafter.

Commitments are due on July 28.

GE Capital Markets is leading the deal that will be used with $58.25 million of funded and $15 million of delayed-draw subordinated debt to help fund the buyout of the company by Calera Capital.

Senior leverage is 3.9 times and total leverage is 5.25 times, the source added.

United Site Services is a provider of portable sanitation solutions.

Capsugel releases pricing

Capsugel FinanceCo held its London bank meeting, launching its €355 million seven-year term loan with talk of Euribor plus 300 bps with a 1% floor, an original issue discount of 99¾ and 101 soft call protection for six months, a market source said.

Commitments are due on July 28.

UBS AG, Citigroup Global Markets Inc., KKR Capital Markets, Barclays, Deutsche Bank Securities Inc. and Mizuho Securities are leading the deal that will be used to redeem 9 7/8% senior notes due 2019 and fund a dividend.

Along with the term loan, the company is looking to increase its revolver to $175 million from $150 million and extend the maturity by three years, with a springing maturity to six months prior to the existing term loan maturity date if the existing term loans are not refinanced or extended by that time.

Capsugel is a Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Sterigenics reveals timing

Sterigenics emerged with timing on the launch of its $565 million credit facility, with the bank meeting set to take place at 10 a.m. ET in New York on Thursday, according to a market source.

The facility consists of a $75 million revolver and a $490 million seven-year first-lien covenant-light term loan, the source said, adding that the term loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Commitments are due on July 31.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets LLC and UBS Securities LLC are leading the deal that will help fund the acquisition of Nordion Inc., an Ottawa-based health science company, for $13.00 per share.

Closing is expected in the second half of this year, subject to Nordion shareholder approval, receipt of regulatory approvals and other customary conditions.

Sterigenics is a Deerfield, Ill.-based sterilization services company.

Formula One coming soon

Formula One plans to hold a bank meeting at 2 p.m. ET in New York on Thursday to launch $2 billion in new term loans and an amendment and extension of existing term loans, according to a source.

The new debt consists of a $1 billion seven-year incremental first-lien covenant-light term loan and a $1 billion eight-year second-lien covenant-light term loan, the source said.

Proceeds from the new loans and cash on hand will be used to refinance private high-yield debt and fund a distribution to shareholders.

Meanwhile, the debt being amended and restated includes $2,102,000,000 of existing first-lien covenant-light term loans and €40 million of existing first-lien covenant-light term loans, both of which will get a seven year maturity. The new U.S. first-lien loan will be fungible with the amended and extended U.S. first-lien loan, the source added.

Bank of America Merrill Lynch and RBS Securities Inc. are leading the deal for the sports media property, which operates and holds the commercial rights to the Formula One World Championships.

Houston Fuel on deck

Houston Fuel Oil Terminal scheduled a bank meeting for 10:30 a.m. ET on Thursday to launch a $625 million senior secured credit facility, according to a market source.

The facility consists of a $75 million revolver and a $550 million term loan B, the source said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

Houston Fuel is a Houston-based marine terminal for storage of residual fuel oil and crude oil.

U.S. Shipping readies call

U.S. Shipping set a call for Thursday to launch a repricing of its term loan B, according to a market source.

UBS AG is leading the deal for the Edison, N.J.-based provider of long-haul marine transportation services.

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