Norwegian Cruise Line breaks above OID; AMAG Pharmaceuticals, Essar Steel changes surface

By Sara Rosenberg

New York, Nov. 6 – Norwegian Cruise Line Holdings Ltd.’s credit facility emerged in the secondary market on Thursday with the term loan B seen trading above its original issue discount price.

Over in the primary, AMAG Pharmaceuticals Inc. raised pricing on its term loan B, modified the call protection and beefed up amortization, and Essar Steel Algoma Inc. increased the size of its term loan B, lifted pricing for a second time and modified the call protection.

Also, Tibco Software Inc., Mueller Water Products Inc., Creganna-Tactx Medical and Parq Resort & Casino (Parq Ltd. Holdings Partnership) disclosed talk with launch, and Multi Packaging Solutions Inc./Chesapeake MPS Merger Ltd. revealed original issue discount guidance on its incremental term loan.

Norwegian frees up

Norwegian Cruise Line’s credit facility began trading on Thursday, with the $350 million seven-year term loan B quoted at par bid, par ¾ 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 sold at an original issue discount of 99½. There is 101 soft call protection for one year.

Recently, pricing on the term loan B was reduced from talk of Libor plus 350 bps to 375 bps, the discount was changed from 99 and the 12-month MFN sunset provision was eliminated.

The Miami-based cruise company’s new $1.05 billion in bank debt also includes a $700 million incremental term loan A priced at Libor plus 225 bps, which was upsized from $450 million during syndication.

J.P. Morgan Securities LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used with $680 million of bonds, the issuance of equity shares and cash on hand to fund the acquisition of Prestige Cruises International Inc., parent of Oceania Cruises and Regent Seven Seas Cruises, for $3,025,000,000, including the assumption of debt.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

AMAG reworks loan

Moving to the primary market, AMAG Pharmaceuticals lifted the spread on its $340 million six-year senior secured first-lien term loan B (Ba3/B+) to Libor plus 625 bps from Libor plus 550 bps and sweetened the hard call protection to 102 in year one and 101 in year two from 101 for one year, a market source said.

Additionally, amortization on the loan was changed to 10% in year one and 15% per annum thereafter from 5% in year one and 10% per annum thereafter, the source continued.

The term loan still has a 1% Libor floor and an original issue discount of 99.

Jefferies Finance LLC is leading the deal that was subscribed by investors after the revisions were put into place.

AMAG buying Lumara

Proceeds from AMAG’s term loan B will be used to help fund the acquisition of Lumara Health Inc. for $675 million.

The purchase price is divided into $600 million in cash and $75 million in stock, and additional contingent consideration of up to $350 million based on achievement of certain sales milestones.

Closing is expected in the fourth quarter, following termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and completion of financing.

AMAG is a Waltham, Mass.-based specialty pharmaceutical company. Lumara is a Chesterfield, Mo.-based pharmaceutical company specializing in women’s health.

Essar Steel tweaks deal

Essar Steel Algoma lifted its 4¾-year first-lien term loan B to $375 million from $350 million, raised pricing to Libor plus 650 bps from revised talk of Libor plus 550 bps and initial talk of Libor plus 475 bps to 500 bps, and adjusted the call protection to a 101 hard call in years one and two from 101 soft call protection for one year, according to a market source.

The term loan B still has a 1% Libor floor and an original issue discount of 98, but earlier in syndication, the discount has been revised from 99.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal that will be used with $375 million of senior secured notes and $249 million in junior exchange notes to refinance the company’s capital structure.

By comparison, in addition to the term loan B, the company was initially planning on getting $350 million of senior secured notes and $275 million of junior secured notes as part of the refinancing.

Essar Steel is a Sault Ste. Marie, Ont.-based manufacturer of hot and cold rolled steel products.

Tibco holds meeting

Also on the new deal front, Tibco Software hosted its bank meeting and revealed price talk on its $2,075,000,000 secured credit facility, a market source said.

Talk on the $125 million five-year revolver is Libor plus 450 bps with no Libor floor, talk on the $1.65 billion six-year covenant-light first-lien term loan is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98½ to 99 and 101 soft call protection for six months, and talk on the $300 million one-year asset-sale bridge loan is Libor plus 450 bps with a 1% Libor floor and a discount of 99 to 99½, the source continued.

J.P. Morgan Securities LLC, Jefferies Finance LLC, Apollo and MCS Capital are leading the deal that will be used with $950 million of notes and equity to fund the buyout of the company by Vista Equity Partners for $24.00 per share in cash, or a total of about $4.3 billion, including the assumption of net debt.

Closing is expected in the fourth quarter, subject to approval by Tibco stockholders, regulatory approvals and other customary conditions.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

Mueller Water launches

Mueller Water Products disclosed talk of Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months on its $500 million seven-year covenant-light term loan B (B2/BB) that launched with a morning bank meeting, according to a market source.

Commitments are due on Nov. 20, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and MCS Capital are leading the deal that will be used to refinance existing debt.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

Creganna-Tactx talk emerges

Creganna-Tactx Medical came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $185 million first-lien term loan, and talk of Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two on its $90 million second-lien term loan, a source remarked.

The company’s $300 million credit facility, which also includes a $25 million revolver, launched with a bank meeting during the session and has a Nov. 20 commitment deadline.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are leading the deal that will be used to help fund the acquisition of Precision Wire Components LLC, a Tualatin, Ore.-based producer of medical wires, from the Riverside Co.

First-lien leverage is 3.4 times, total leverage is 5.1 times and equity is more than 40% of the capitalization.

Closing is expected in early December, subject to regulatory approvals and other customary conditions.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing services.

Parq Resort guidance

Parq Resort & Casino launched with a bank meeting its $175 million in six-year senior secured term loan debt (Ba3) with talk of Libor plus 700 bps to 750 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable for 2½ years, then at 101 for a year, according to a market source.

The debt is comprised of a $130 million funded term loan, and a $45 million delayed-draw term loan that has a ticking fee of half the spread.

Commitments for the loans, which are being sold a strip, are due on Nov. 20.

Credit Suisse Securities (USA) LLC and Dundee Securities are leading the deal that will be used to fund the construction of the resort and casino.

Parq is a resort and casino in Vancouver.

Multi Packaging floats OID

Multi Packaging Solutions held its call in the morning, launching its $135 million non-fungible incremental term loan due Sept. 30, 2020 with original issue discount talk of 98, according to a market source.

Price talk on the loan emerged the other day at Libor plus 325 bps with a 1% Libor floor.

Included in the incremental loan is 101 soft call protection for six months, and existing $330 million term loan and $122 million term loan will get that call protection as well, the source said.

Commitments are due at 5 p.m. ET on Nov. 13.

Barclays is leading the deal that will be used to fund the acquisition of the North American and Asian Print businesses from ASG Group.

Senior secured leverage is 4.1 times, total leverage is 4.9 times and net total leverage is 4.8 times.

Multi Packaging/Chesapeake is a New York-based provider of value-added packaging services.

Ability Network allocates

In other news, Ability Network Inc. allocated its $116.1 million of incremental term loans that will be used to fund the acquisition of MD On-Line Inc., according to a market source.

The debt consists of a $92.5 million incremental first-lien term loan (B) due May 2021 priced at Libor plus 500 bps with a 1% Libor floor and issued at a discount of 99 and a $23.6 million incremental second-lien term loan (CCC+) due May 2022 priced at Libor plus 825 bps with a 1% Libor floor and issued at 99.

Earlier this week, the discount on the second-lien loan was tightened from 98.

The spreads and floors on the incremental term loans match the existing first- and second-lien term loans.

Macquarie Capital (USA) Inc. is leading the deal.

Ability is a Minneapolis-based developer of workflow technology for hospitals, home health agencies and other care settings. MD On-Line is a Parsippany, N.J.-based maker of electronic data interchange and revenue cycle tools for payers and providers.

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