Ellucian, ABB/Con-Cise, Beacon Roofing, Universal Fiber talk surfaces; Hanson reveals OID

By Sara Rosenberg

New York, Sept. 10 – Ellucian, ABB/Con-Cise Optical Group LLC, Beacon Roofing Supply Inc. and Universal Fiber Systems LLC all disclosed pricing guidance on their new loan deals that were presented to lenders on Thursday.

Also, Hanson Building Products (Stardust Finance Holdings Inc.) released original issue discount talk on its incremental first-lien term loan, and Foundation Building Materials LLC emerged with new deal plans.

Ellucian reveals guidance

Ellucian held its bank meeting on Thursday morning, launching its $1.46 billion seven-year covenant-light term loan B with talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.61 billion credit facility (B2/B+) also includes a $150 million five-year revolver.

Commitments are due at noon ET on Sept. 18, the source said.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays, Jefferies Finance LLC, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. are leading the deal that will be used with $590 million of bonds to help fund the buyout of the company by TPG Capital and Leonard Green Partners from Hellman & Friedman and JMI Equity.

Closing is expected before year-end, subject to customary conditions and regulatory approvals.

Ellucian is a Fairfax, Va.-based provider of higher education software and services.

ABB/Con-Cise launches

ABB/Con-Cise Optical revealed price talk on its first-and second-lien term loan in connection with its bank meeting, a market source said.

The $400 million seven-year covenant-light first-lien term loan B (B) is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the $150 million eight-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $650 million senior secured deal also includes a $100 million five-year revolver (B).

Commitments are due on Sept. 24 and closing is expected in late September, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and GE Capital Markets Inc. are leading the deal that will be used by the optical distributor to refinance an existing first-lien term loan and fund a dividend.

Beacon sets talk

Beacon Roofing Supply released talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months from closing on its $450 million seven-year covenant-light senior secured term loan B (B2/BB+) that launched with a morning bank meeting, according to a market source.

By comparison, the commitment letter filed with the Securities and Exchange Commission in July had the term loan expected at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due on Sept. 24, the source said.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the loan.

Beacon getting revolver

Along with the term loan B, Beacon Roofing’s $1.15 billion credit facility includes a $700 million five-year ABL revolver that is left-led by Wells Fargo.

Proceeds from the credit facility will be used with $300 million of eight-year senior unsecured notes and $291 million in new stock and options to fund the acquisition of Roofing Supply Group from Clayton, Dubilier & Rice for $286 million in cash and $291 million of Beacon common stock. Also, Beacon will refinance around $565 million of Roofing Supply’s net debt.

Closing is expected on Oct. 1, subject to the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Beacon Roofing is a Herndon, Va.-based distributor of residential and commercial roofing materials and complementary building products. Roofing Supply is a Dallas-based wholesale distributor of roofing supplies and related materials.

Universal Fiber floats terms

Universal Fiber Systems held its bank meeting in the morning, and disclosed talk on its first-and second-lien term loans, according to a market source.

The $165 million first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $40 million second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $240 million credit facility also includes a $35 million revolver.

Commitments are due on Sept. 24, the source added.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

Universal Fiber Systems is a Bristol, Va.-based manufacturer of high-performance, specialty synthetic fibers for segments of the commercial carpet, transportation carpet, and specialty textile industries.

Hanson OID emerges

In more primary happenings, Hanson Building Products came out with original issue discount talk of 99 on its fungible $240 million incremental first-lien term loan due March 13, 2022 that launched with a call during the session, a source remarked.

As previously reported, pricing on the incremental term loan is Libor plus 550 bps with a 1% Libor floor and the debt has 101 soft call protection through March 13, 2016, which is all in line with existing term loan terms.

Commitments are due on Sept. 24.

Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Cretex Concrete Products Inc.

Hanson Building Products is a manufacturer of concrete and clay building products.

Foundation Building on deck

Foundation Building set a bank meeting for Sept. 17 to launch a $375 million credit facility, according to a market source.

The facility consists of a $50 million ABL revolver, a $245 million seven-year first-lien term loan B and an $80 million eight-year second-lien term loan, the source said.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Lone Star Funds.

Foundation Building is a Tustin, Calif.-based building material company.

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