Samsonite, Atlantic Power, Pharmaceutical Product, Pinnacle break; MKS accelerates deadline

By Sara Rosenberg

New York, April 13 – Samsonite’s credit facility freed up for trading during Wednesday’s market hours, with the term loan B quoted above its original issue discount, and Atlantic Power LP (APLP Holdings LP) broke as well.

Also, Pharmaceutical Product Development LLC (Jaguar Holding Co. II) tightened the original issue discount on its tack-on term loan, and Pinnacle Entertainment Inc. firmed pricing on its downsized term loan B at the low end of revised talk, and then both deals began trading too.

In more happenings, MKS Instruments Inc. moved up the commitment deadline on its term loan B, and SiteOne Landscape Supply joined this week’s new issue calendar.

Samsonite tops OID

Samsonite’s credit facility hit the secondary market on Wednesday, with the $675 million seven-year term loan B quoted at par bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 325 basis points with a 0.75% Libor floor, and it was issued at a discount of 99.5. The loan has 101 soft call protection for six months.

Recently, pricing on the term loan B was reduced from talk of Libor plus 375 bps to 400 bps, and the discount firmed at the tight end of the 99 to 99.5 guidance.

The company’s $2,425,000,000 senior secured credit facility (Ba2/BBB-) also includes a $500 million five-year revolver and $1.25 billion five-year term loan A, both priced at Libor plus 275 bps with no Libor floor, and sold at an original issue discount that was subject to a grid.

Samsonite buying Tumi

Proceeds from Samsonite’s credit facility will be used with cash on hand to fund the acquisition of Tumi Holding Inc. for $26.75 per share in cash, or about $1.82 billion, and to refinance existing credit facilities at both companies.

Morgan Stanley Senior Funding, Inc., HSBC Bank USA, SunTrust Robinson Humphrey Inc., MUFG, Barclays, Citizens Capital Markets, ING, Fifth Third and Bank of China are leading the debt, with Morgan Stanley the administrative agent on the term loan B and HSBC the administrative agent on the term loan A.

Closing is expected in the second half of this year, subject to the receipt of approvals by Samsonite and Tumi shareholders, the receipt of required regulatory approvals and the satisfaction of other customary conditions.

Samsonite International SA is the borrower on the revolver, and Samsonite IP Holdings is the borrower on the term loans.

Hong Kong-based Samsonite and South Plainfield, N.J.-based Tumi are manufacturers of bags and luggage.

Atlantic Power frees up

Atlantic Power’s credit facility began trading too, with the $700 million seven-year term loan B quoted at 97¼ bid, 98¼ offered, a market source said.

Pricing on the term loan B is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

The company’s $900 million senior secured credit facility (Ba3) also includes a $200 million five-year revolver.

During syndication, pricing on the term loan B was increased from talk of Libor plus 450 bps to 475 bps; the discount widened from 98; and the project finance quarterly cash flow sweep was changed to the greater of 50% and the percentage required to hit quarterly target debt balances that result in an 82% paydown by maturity, which would leave the outstanding balance at $125 million at maturity, from a 50% sweep. Also, the revolver was downsized from $210 million.

Atlantic Power leads

Goldman Sachs Lending Partners LLC and Bank of America Merrill Lynch were the joint bookrunners on Atlantic Power’s credit facility and joint lead arrangers with RBC Capital Markets LLC, MUFG and Wells Fargo Securities LLC.

The company is using the new debt to refinance existing bank debt, to redeem C$67.2 million 6.25% convertible debentures due in March 2017 and C$75.8 million 5.6% convertible debentures due in June 2017, to fund other potential initiatives to reshape the company’s capital structure and for general corporate purposes.

Closing on the financing was announced by the company on Wednesday.

Atlantic Power is a Dedham, Mass.-based owner and operator of power generation assets.

PPD revised, breaks

Pharmaceutical Product Development modified the original issue discount on its fungible $200 million tack-on first-lien term loan due Aug. 18, 2022 to 99 from 98.75, a market source said.

Pricing on the tack-on loan as well as on the company’s existing $2,556,000,000 term loan is Libor plus 325 bps with a step-down and a 1% Libor floor.

The tack-on loan includes a ticking fee of the spread plus the floor beginning 31 days post allocating.

Commitments were due at noon ET on Wednesday, and with final terms in place, the debt made its way into the secondary market with levels quoted at 99¼ bid, 99¾ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the debt that will be used to fund an acquisition.

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

Pinnacle firms terms, trades

Pinnacle Entertainment reduced its seven-year covenant-light term loan B to $300 million from $350 million and set the spread at Libor plus 300 bps, the low end of most recent talk of Libor plus 300 bps to 325 bps, down from revised talk of Libor plus 350 bps to 375 bps and tight of initial talk of Libor plus 375 bps, according to sources.

As before, the term loan B has a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for one year.

Previously, the discount tightened from 99, the Libor floor was cut from 1%, and the call protection was extended from six months.

After terms finalized, the term loan B broke for trading, and levels were seen by one source at par bid, 100½ offered.

Pinnacle refinancing

Proceeds from Pinnacle Entertainment’s term loan B will be used to refinance existing debt and for general corporate purposes.

The credit facility is being done in connection with the spinoff of the operating business and the real property of Belterra Park Gaming & Entertainment into a separately traded public company (Pinnacle) and the sale of the remaining real estate assets (PropCo.) of Pinnacle to Gaming & Leisure Properties Inc.

Other funds for the transaction will come from $375 million of senior notes, upsized from $300 million.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Credit Agricole CIB, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the credit facility.

Closing is expected on April 28, subject to customary conditions and regulatory approvals.

Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

MKS tweaks deadline

In other news, MKS Instruments accelerated the commitment deadline on its $800 million seven-year covenant-light term loan B (Ba2/BB) to noon ET on Thursday from 5 p.m. ET on Friday, according to a market source.

The term loan B is talked at Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

The company’s $850 million senior secured credit facility also includes a $50 million five-year ABL revolver.

Barclays and Deutsche Bank Securities Inc. are leading the deal, with Barclays the left lead on the term loan and Deutsche Bank the left lead on the revolver.

MKS buying Newport

Proceeds from MKS Instruments’ credit facility will be used to help fund the acquisition of Newport Corp. for $23.00 per share. The all-cash transaction is valued at about $980 million.

Total leverage is 2.5 times, and net leverage is 1 times.

Closing is expected in the second quarter, subject to regulatory approval and approval by Newport’s shareholders.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes. Newport is an Irvine, Calif.-based supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense/security markets.

SiteOne readies loan

SiteOne Landscape Supply emerged with plans to hold a bank meeting at 2:30 p.m. ET in New York on Thursday to launch a new $250 million six-year first-lien term loan, a market source remarked.

UBS Investment Bank is leading the loan that will be used to refinance existing debt and fund a dividend.

Clayton Dubilier & Rice is the sponsor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

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