Hilex, Ipreo break; Emerald Expo updates deal; Key Safety, Dave & Buster’s shutting early

By Sara Rosenberg

New York, July 16 – Hilex Poly LLC’s credit facility freed up for trading on Wednesday with the term loan quoted above its original issue discount, and Ipreo Holdings LLC hit the secondary market as well.

Switching to the primary, Emerald Expositions Holding Inc. extended the call protection on its term loan, and Key Safety Systems Inc. and Dave & Buster’s Inc. accelerated the commitment deadlines on their credit facilities.

Amaya Gaming Group Inc. (Amaya BV and Amaya (US) Co-Borrower LLC), Styrolution, Ceridian LLC, Chrysaor Ltd. and QSR (QSRH Borrowing Co. pty Ltd. and US Finco LLC) released price talk with their launches, and Portillo Restaurant Group Inc. set timing on its deal and updated the structure.

Hilex Poly frees up

Hilex Poly’s credit facility broke for trading on Wednesday, with the $470 million seven-year covenant-light term loan quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a 1% 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 was reduced from Libor plus 425 bps, the call protection was extended from six months and the MFN sunset was eliminated.

The Hartsville, S.C.-based manufacturer of plastic bags is also getting an $85 million five-year revolver as part of its $555 million senior credit facility (B2/B).

GE Capital, Macquarie Capital (USA) Inc. and BMO Capital Markets Corp. are leading the deal that will be used with $40 million of mezzanine financing from Northwestern Mutual Life to fund the acquisition of Duro Bag Manufacturing Co., a Florence, Ky.-based manufacturer of paper bags.

Closing is expected at the end of this quarter, subject to customary conditions and regulatory approvals.

Ipreo tops OID

Ipreo Holdings’ credit facility emerged in the secondary too, with the $345 million seven-year term loan B seen at 99¾ bid, par ¾ offered, according to a trader.

The term loan is priced at Libor plus 325 bps with a 1% Libor floor and was sold at a discount of 99½. There is 101 soft call protection for six months.

Earlier this week, the term loan was upsized from $320 million, pricing was trimmed from talk of Libor plus 350 bps to 375 bps and the discount was tightened from 99.

The company’s $390 million senior credit facility (B1/B+) also includes a $45 million revolver.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets LLC are leading the deal.

Ipreo funding buyout

Proceeds from Ipreo’s credit facility will be used to help fund its purchase by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP, although Kohlberg Kravis Roberts will retain a minority ownership stake in the business.

The company will also use $185 million of notes and equity to fund the buyout.

Due to the recent term loan upsizing, the notes offering was reduced from $200 million and the equity was reduced by $10 million, the source added.

Ipreo is a New York-based provider of new issuance software solutions across the equity, fixed income, municipal and syndicated loan markets.

BWIC surfaces

Also in trading, a roughly $31.8 million Bid Wanted In Competition was announced on Wednesday, with market participants being asked to get their bids in by 11 a.m. ET on Thursday, a trader remarked.

Some of the issuers in the portfolio include Avaya, Community Health Systems Inc., First Data Corp., Huntsman International LLC, Longview Power and Texas Competitive.

There are 21 tranches of bank debt being offered in the portfolio, the source added.

Emerald Expositions tweaks deal

Moving to the primary, Emerald Expositions extended to one year from six months the 101 soft call protection on its $600 million covenant-light term loan B due June 17, 2020, according to a market source.

Pricing on the loan remained at Libor plus 375 bps with a 1% Libor floor and a par offer price.

Bank of America Merrill Lynch is leading the deal that will be used to reprice the company’s existing term loan from Libor plus 425 bps with a 1.25% Libor floor.

Emerald is a San Juan Capistrano, Calif.-based operator of large business-to-business tradeshows.

Key Safety adjusts deadline

Key Safety Systems moved up the commitment deadline on its $600 million credit facility to Friday from Tuesday, a market source said.

The facility consists of an $80 million revolver (Ba2/B+), a $420 million seven-year first-lien term loan (Ba2/B+) talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $100 million eight-year second-lien term loan (B2/B) talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

UBS AG, Citigroup Global Markets Inc. and Nomura are leading the deal that will be used to fund the buyout of Key Safety Systems by FountainVest Partners from Crestview Partners.

Key Safety Systems is a Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

Dave & Buster’s accelerated

Dave & Buster’s revised the commitment deadline on its $580 million credit facility (B2/B) to noon ET on Friday from July 24, according to a market source.

The facility includes a $50 million five-year revolver and a $530 million six-year covenant-light term loan B talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Jefferies Finance LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Dave & Buster’s is a Dallas-based owner and operator of dining and entertainment venues.

Amaya Gaming launches

Amaya held its bank meeting on Wednesday afternoon, and with the event, price talk on its first-and second-lien term loans was announced, according to a market source.

The $2 billion seven-year first-lien covenant-light term loan (B1) is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount in the 99½ area and 101 soft call protection for six months, and the $800 million eight-year second-lien covenant-light term loan (Caa1) is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount in the 99 area and call protection of 102 in year one and 101 in year two, the source said.

The company’s $2.9 billion senior secured credit facility also includes a $100 million five-year revolver (B1).

Commitments are due on July 25, the source added.

Amaya lead banks

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading Amaya’s credit facility, with the Deutsche Bank left lead on the first-lien loan and Barclays left lead on the second-lien loan.

Proceeds will be used with $1 billion to be raised through the issuance of convertible preferred shares, $642 million from an equity issuance and $238 million in cash on hand to fund the purchase of Oldford Group Ltd., parent company of Rational Group Ltd., for $4.9 billion, including certain deferred payments, subject to other customary adjustments.

Closing is expected on or about Sept. 30, subject to approval by Amaya’s shareholders and customary conditions, including receipt of all regulatory approvals.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services. Oldford Group is an Onchan, Isle of Man-based operator of gaming and related businesses and brands.

Styrolution pricing emerges

Styrolution came out with price talk on its €1.6 billion equivalent seven-year U.S. and euro term loan B, with the U.S. portion talked at Libor plus 350 bps and the euro portion talked at Euribor plus 350 bps to 375 bps, according to market sources.

All of the term B debt is also talked with a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months.

A bank meeting for U.S. investors was held in New York on Wednesday, and one for European investors will take place in London on Thursday, and commitments are due on July 29, sources added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, HSBC and J.P. Morgan Securities LLC are leading the deal, with Citigroup left lead on the U.S. and Credit Suisse left lead on the euro.

Proceeds will be used to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution, a Frankfurt, Germany-based styrenics supplier, and to refinance existing debt.

Ceridian holds meeting

Ceridian had its bank meeting during the session, launching its $673 million term loan B-1 due May 2017 at Libor plus 400 bps with no Libor floor and a par offer price and its $702 million term loan B-2 due September 2020 at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½, according to a market source.

Commitments for the $1,375,000,000 of term loans are due on July 29.

Deutsche Bank Securities Inc. is sole bookrunner on the term loan B-1, and Deutsche Bank and Credit Suisse Securities (USA) LLC are the joint bookrunners on the term loan B-2.

Proceeds will be used to refinance/bifurcate the company’s existing term loan into two distinct loan tranches.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

Chrysaor talk emerges

Chrysaor released talk of Libor plus 775 bps with a 1% Libor floor and an original issue discount of 99 on its $340 million 3½-year first-lien covenant-light term loan, and Libor plus 1,125 bps with a 1% Libor floor and a discount of 99 on its $200 million four-year covenant-light second-lien term loan with its New York bank meeting, a source remarked. A bank meeting for European investors will take place in London on Thursday.

Up to 5.25% of the second-lien loan rate may be PIK interest if total leverage is greater than 4 times.

The first-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three, and the second-lien loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 for six months thereafter, the source continued.

Chrysaor refinancing

Proceeds from Chrysaor’s $540 million in new senior secured term loans will be used to repay existing debt in relation to an outstanding loan from Premier Oil and provide capital for remaining costs associated with the development of the company’s Solan field in the North Sea.

Barclays is leading the deal.

Commitments are due on July 31, the source added.

Chrysaor is a London-based company that develops and commercializes oil and gas discoveries in the North Sea and Ireland.

QSR reveals guidance

QSR held its bank meeting, launching its $185 million seven-year first-lien term loan (B1/B+) with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99 and its $55 million 7½-year second-lien term loan (Caa1/B-) with talk of Libor plus 800 bps with a 1% Libor floor and a discount of 98½, a source said.

As previously reported, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Along with the term loans, the company is getting a A$10 million revolver.

Commitments are due on July 30.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used by the franchisor and operator of quick service restaurants in Australia to refinance existing debt.

Portillo on deck

Portillo Restaurant scheduled a call for 11 a.m. ET on July 23 to launch the $445 million credit facility that will be used to help fund its buyout by Berkshire Partners, according to a market source.

The facility consists of a $30 million revolver, a $315 million first-lien term loan and a $100 million second-lien term loan.

Originally, the second-lien term loan was expected to be sized at $140 million, but as a result of the significant common equity provided by Berkshire, the loan was downsized, the source said.

Specifically, the Chicago-based restaurant chain is getting for the buyout $370 million of common equity as well as $100 million of holdco preferred equity owned solely by Goldman Sachs.

UBS AG and Jefferies Finance LLC are leading the credit facility.

Opco leverage through the first-lien is 4.6 times and through the second-lien is 6 times, the source added.

AmSurg closes

In other news, AmSurg Corp., a Nashville-based acquirer, developer and operator of ambulatory surgery centers, completed its acquisition of Sheridan Healthcare, a Sunrise, Fla.-based provider of multi-specialty outsourced physician services, from Hellman & Friedman LLC, a news release said.

For the transaction, AmSurg got a new $1.17 billion senior secured credit facility (BB-) that includes a $300 million five-year revolver and an $870 million seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when total leverage is less than 4.5 times. There is 0.75% Libor floor and 101 soft call protection for six months, and the debt was sold at an original issue discount of 99¾.

During syndication, the term B was downsized from $1.09 billion as the company’s notes offering was upsized to $1.1 billion from $880 million, the spread was cut from Libor plus 325 bps, the step-down was added, the Libor floor was lowered from 1% and the discount was moved from 99½.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC led the deal.

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