EnergySolutions up with buyout; ABB Concise slides; Pinafore dips on lender call news

By Sara Rosenberg

New York, Jan. 7 - EnergySolutions Inc.'s term loan gained some ground in trading on Monday as the company announced that it is being acquired by Energy Capital Partners II LLC, and ABB Concise Inc.'s term loan softened with paydown expectations.

Also in the secondary market, Pinafore Holdings BV (Tomkins Ltd.) saw its term loan weaken a little following word that the company will be holding a call for credit facility lenders.

Moving to the primary, some early unofficial pricing rumblings surfaced on Dupont Performance Coatings' term loan ahead of its launch, Cole Haan LLC released the timing and structure on its deal and Renfro Corp. revealed new loan plans.

EnergySolutions rises

EnergySolutions' term loan strengthened in the secondary market on Monday with news that it is being bought by Energy Capital Partners II LLC for $3.75 in cash, or $1.1 billion, according to a trader.

The term loan was quoted at par ¼ bid, par ¾ offered, up from 96¾ bid, 97½ offered, the trader said.

To help fund the transaction, the company has received a commitment for a new senior secured credit facility that is being led by Morgan Stanley Senior Funding Inc.

Closing is subject to customary conditions, including regulatory approvals in the U.S. and U.K., clearance under the Hart-Scott-Rodino Act and stockholder approval.

There is a go-shop period through Feb. 6.

EnergySolutions is a Salt Lake City-based nuclear commercial services company.

ABB Concise retreats

ABB Concise's term loan headed lower in trading as the debt is planned to be taken out with a new credit facility targeted to launch with a bank meeting later this month, according to sources.

The term loan was quoted at par bid, par ½ offered, down from par ¾ bid, 101¼ offered, a trader remarked.

The existing $115 million term loan was done in late 2012 at pricing of Libor plus 525 basis points with a step to Libor plus 500 bps if net leverage is 3.5 times. The loan has a 1.25% Libor floor.

To take out the existing term loan and $40 million revolver and to fund the acquisition of Optical Distributor Group, ABB Concise will be coming to market with a $330 million credit facility that is comprised of a $70 million revolver and a $260 million term loan B, sources said.

Bank of America Merrill Lynch, RBC Capital Markets and GE Capital Markets are leading the new deal.

Coral Springs, Fla.-based ABB Concise and Hawthorne, N.Y.-based Optical Distributor Group are distributors of optical products.

Pinafore trades down

Pinafore Holdings' term loan dropped to par ½ bid, 101½ offered, from par 7/8 bid, 101 7/8 offered, after news came out that the company will be hosting a call for existing loan lenders at 1 p.m. ET on Tuesday, according to a trader.

What will be discussed on the call has not yet been announced, a source added.

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

Pinafore is a London-based engineering and manufacturing group.

Dupont guidance chatter

Over in the primary, Dupont Performance Coatings' $2.3 billion seven-year covenant-light U.S. term loan is heard to be unofficially guided in the 5½% to 5¾% area on an all-in basis, sources said, but official talk on the deal is not expected to emerge until Tuesday morning's New York bank meeting.

The $2.9 billion senior secured credit facility, which will also launch with a bank meeting in London on Wednesday, includes a $400 million five-year revolver and a $200 million seven-year covenant-light euro-equivalent term loan in addition to the U.S. term loan.

Sources are hearing that the deal appears to have significant initial support from investors.

Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Securities LLC, Jeffries Finance LLC and SMBC are leading the transaction.

Dupont being acquired

Proceeds from Dupont Performance Coatings' credit facility, $1.4 billion of bonds and equity will be used to fund its buyout by the Carlyle Group from DuPont for $4.9 billion.

Net senior secured leverage is about 4 times and net total leverage is roughly 5.6 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

DuPont Performance Coatings is a Wilmington, Del.-based supplier of vehicle and industrial coating systems.

Cole Haan details surface

Cole Haan disclosed that its buyout financing will include a $370 million credit facility that will launch with a bank meeting on Friday, according to a market source.

The facility consists of a $100 million asset-based revolver and a $270 million seven-year covenant-light term loan, the source continued.

Jefferies & Co. is leading the deal that will be used with $300 million of equity for the company's purchase by Apax Partners from Nike Inc. for $570 million in cash. The buyout was announced late last year and is expected to close early this year.

Leverage is about 4.25 times.

Cole Haan is a New York-based designer and retailer of men's and women's footwear, apparel and accessories.

Renfro coming soon

Renfro set a bank meeting for 10:30 a.m. ET on Thursday to launch a $220 million term loan B that is being used to refinance an existing term loan and fund a dividend, according to a market source.

RBC Capital Markets is leading the deal.

Renfro is a Mount Airy, N.C.-based designer, manufacturer and marketer of socks.

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