Carrols Restaurant revisions surface; Nordam Group sets talk; near-term calendar builds

By Sara Rosenberg

New York, March 25 – In the primary market on Monday, Carrols Restaurant Group Inc. tightened the original issue discount on its term loan B, added a pricing step-down and accelerated the commitment deadline, and Nordam Group LLC released price talk on its term loan B in connection with its bank meeting.

Furthermore, E.W. Scripps Co. came out with timing on the launch of its incremental term loan B, and Six Flags Theme Parks Inc., Greenhill & Co. Inc. and Direct ChassisLink Inc. joined the near-term primary calendar.

Carrols reworked

Carrols Restaurant Group modified the original issue discount on its $400 million seven-year covenant-lite term loan B to 99.5 from 99 and added a pricing step-down to Libor plus 325 basis points at 2.75 times first-lien leverage, according to a market source.

Initial pricing on the term loan is still Libor plus 350 bps with a 0% Libor floor, and the debt continues to include 101 soft call protection for six months.

The company’s $500 million of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

Commitments are due at 11 a.m. ET on Friday, moved up from 3 p.m. ET on April 4, the source said.

Wells Fargo Securities LLC, Rabobank, M&T Bank and SunTrust Robinson Humphrey Inc. are leading the deal.

Carrols refinancing

Carrols’ will use its new credit facilities to refinance debt assumed in connection with the acquisition of 166 Burger King and 55 Popeyes restaurants from Cambridge Franchise Holdings LLC, to refinance its own existing debt and for general corporate purposes.

For the restaurants, Cambridge will receive about 7.36 million shares of Carrols common stock and at closing will own around 16.6% of Carrols’ outstanding common shares. Cambridge will also receive shares of 9% PIK series C convertible preferred stock that will be convertible into about 7.45 million shares of Carrols common stock at $13.50 per share.

The transaction is valued at about $238 million, including roughly $100 million of net debt assumed from Cambridge.

Total debt is expected to be under 3 times adjusted EBITDA.

Carrols is a Syracuse, N.Y.-based restaurant franchisee and operator.

Nordam reveals guidance

Nordam Group held its bank meeting on Monday and announced talk on its $240 million seven-year term loan B (B+/BB) at Libor plus 575 bps with a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due on April 3.

J.P. Morgan Securities LLC is leading the deal that will be used with a $140 million equity investment by the Carlyle Group to fund the company’s exit from Chapter 11, to repay DIP/pre-petition credit facilities and for general corporate purposes.

Closing is expected in the first half of this year, subject to bankruptcy court approval and satisfaction of customary conditions, including regulatory approval.

Nordam is Tulsa, Okla.-based aerospace manufacturing and repair company.

E.W. Scripps timing emerges

Also in the primary market, E.W. Scripps scheduled a lender call for 10 a.m. ET on Tuesday to launch its previously announced $525 million seven-year covenant-lite incremental term loan B (Ba3/BB), according to a market source.

The incremental loan has 101 soft call protection for six months, the source said.

Commitments are due at 3 p.m. ET on April 4.

Wells Fargo Securities is the left lead on the deal that will be used to fund the $521 million acquisition of 15 television stations in 10 markets from Cordillera Communications.

E.W. Scripps is Cincinnati-based broadcasting and digital media company.

Six Flags readies deal

Six Flags Theme Parks set a lender call for 11 a.m. ET on Tuesday to launch an $800 million seven-year term loan B, a market source said.

The company also plans on getting a new revolver with a targeted size of $350 million, the source continued.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on April 9, the source added.

Wells Fargo Securities is the left lead on the deal that will be used to refinance an existing revolver and term loan B.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

Greenhill joins calendar

Greenhill & Co. emerged with plans to hold a lender call at 10 a.m. ET on Tuesday to launch a $360 million first-lien term loan (Ba2/BB), a market source remarked.

Goldman Sachs Bank USA is leading the deal that will be used to refinance the company’s existing first-lien term loan and to fund cash to the balance sheet.

Greenhill is a New York-based independent investment bank.

Direct ChassisLink on deck

Direct ChassisLink will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a new loan transaction to prospective lenders, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal.

A few weeks ago, the company revealed that it is being acquired by Apollo Global Management LLC from EQT Infrastructure, who will retain a 20% minority stake.

Closing is expected in the second quarter, subject to customary regulatory approvals.

Direct ChassisLink is a Charlotte, N.C.-based provider of domestic and marine chassis to the intermodal supply chain.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.