Neff, TransDigm, Jason, Grede, Connacher break; Post, Floatel, Authentic, Wyle set changes

By Sara Rosenberg

New York, May 21 - Neff Rental LLC's second-lien term loan made its way into the secondary market on Wednesday with levels seen above its original issue discount, and TransDigm Inc., Jason Inc., Grede Holdings LLC and Connacher Oil & Gas Ltd. freed up too.

Moving to the primary, Post Holdings Inc. upsized its term loan while trimming the spread and Libor floor, and Floatel International Ltd. set pricing on its term loan at the wide end of talk and sweetened the call protection.

Also, Authentic Brands Group downsized its first- and second-lien term loans while flexing spreads higher, and Wyle Services Corp. increased pricing on its term loan, adjusted the terms of the step-down and extended the call premium.

Neff frees up

Neff Rental's $575 million seven-year second-lien covenant-light term loan (Caa1/CCC+) broke for trading on Wednesday, with levels quoted at par bid, 101 offered by one source and par bid, par ¾ offered by a second source.

Pricing on the loan is Libor plus 625 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is hard call protection of 102 in year one and 101 in year two.

Last week, the term loan was upsized from $525 million, pricing was decreased from Libor plus 650 bps and the discount was changed from 99.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing secured notes and to pay a dividend.

Neff is a Miami-based construction equipment rental company.

TransDigm tops OID

TransDigm's $825 million seven-year first-lien covenant-light term loan D hit the secondary with levels quoted at 99½ bid, par offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor and it was sold at an original issue discount of 991/4. There is 101 soft call protection for one year.

During syndication, the loan was upsized from $625 million, the spread was trimmed from Libor plus 325 bps and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., RBC Capital Markets and UBS AG are leading the deal.

Proceeds will be used with $2.35 billion of senior subordinated notes, trade receivables securitization facility borrowings and cash on hand to fund the buyback of the company's $1.6 billion 7¾% senior subordinated notes due 2018, to pay a dividend and for general corporate purposes.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

Jason hits secondary

Jason's credit facility also began trading, with the $310 million seven-year covenant-light first-lien loan (B1/B) quoted at 99½ bid, par ¼ offered and the $110 million eight-year covenant-light second-lien loan (Caa1/CCC+) quoted at 98 bid, 99 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was sold at a discount of 97. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

Starting on June 11, the loans have a ticking fee of the full spread and floor.

During syndication, the first-lien term loan was upsized from $300 million, pricing was raised from Libor plus 375 bps, the discount was set at the wide end of the 99 to 99½ talk and the call protection was extended from six months, and the second-lien term loan was cut from $120 million, pricing was increased from Libor plus 725 bps, the discount widened from 99 and the call protection was changed from 102 in year one and 101 in year two.

Jason lead banks

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading Jason's deal that will be used with equity and proceeds from Quinpario Acquisition Corp.'s initial public offering that was completed in August to fund the buyout of the company by Quinpario from Saw Mill Capital LLC, Falcon Investment Advisors LLC and other investors for $538.65 million.

Along with the term loans, the $460 million credit facility includes a $40 million revolver (B1/B).

The facility has an incremental allowance of $80 million plus an unlimited amount subject to 3.75 times first-lien net leverage for first-lien incurrence and 4.5 times, revised from 5.25 times during syndication, net secured leverage for second-lien incurrence.

Closing is expected in July, subject to regulatory and shareholder approval and customary conditions.

Jason is a Milwaukee-based manufacturer of items within the seating, finishing, components and automotive acoustics markets. Quinpario is a St. Louis-based special purpose acquisition company.

Grede starts trading

Grede Holdings' credit facility freed up as well, with the $600 million term loan seen at 99¾ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

Recently, the spread on the term loan finalized at the high end of the Libor plus 350 bps to 375 bps talk and the call protection as extended from six months.

The company's $675 million credit facility (B1) also includes a $75 million revolver.

Goldman Sachs Bank USA, GE Capital Markets, Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

Grede is a Southfield, Mich.-based producer of engineered iron castings to the automotive, medium and heavy truck and industrial markets.

Connacher breaks

Connacher Oil & Gas' C$140 million U.S. equivalent (about $128 million) four-year first-lien second-out term loan emerged in the secondary too, with levels quoted at par bid, par ½ offered, a trader remarked.

Pricing on the loan is Libor plus 600 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt is non-callable for one year then at 101 in year two.

Credit Suisse Securities (USA) LLC is the lead bank on the deal that will be used for general corporate purposes and to refinance existing debt.

Connacher is a Calgary-based in-situ oil sands developer, producer and marketer of bitumen.

Post updated again

Over in the primary, Post Holdings increased its seven-year senior secured term loan to $885 million from a revised amount of $735 million and an initial size of $635 million, cut pricing to Libor plus 300 bps from Libor plus 325 bps and the lowered the Libor floor to 0.75% from 1%, a market source said.

As before, the term loan has an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday.

Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets and Nomura are leading the deal.

Senior secured leverage is 1.5 times and net total leverage is 6.4 times.

Post funding acquisitions

Proceeds from Post's term loan will be used to help fund the $2.45 billion acquisition of Michael Foods from GS Capital Partners, Thomas H. Lee Partners and other owners, and funds from the newest upsizing will be used to pre-fund the acquisition of PowerBar and for general corporate purposes, the source continued.

Other funds for the Michael Foods buy will come from a $630 million senior notes offering, a $200 million equity notes offering, a $211.3 million common stock offering and $787.4 million in cash on hand.

The equity/stock transaction was reduced from $500 million, which was the reason for the first term loan upsizing.

Closing is expected this quarter, subject to conditions, including the expiration of waiting periods required under antitrust laws.

Post is a St. Louis-based consumer packaged goods holding company. Michael Foods is a Minnetonka, Minn.-based producer and distributor of food products to the foodservice, retail and food-ingredient markets.

Floatel tweaks loan

Floatel International firmed pricing on its $650 million six-year covenant-light first-lien term loan (B2/B) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, and changed the call protection to a hard call of 102 in year one and 101 in year two, with a 35% equity claw at par, from 101 soft call protection for one year, according to a market source.

Other revisions included adding an excess cash flow sweep of 50% above 3 times leverage, 25% between 2.5 times to 3 times leverage and 0% below, removing the MFN sunset so that there's 50 bps MFN for life, eliminating the $50 million free and clear accordion, setting the accordion construct subject to additional 3.5 times net leverage with a new build facility carved out at 4 times, outlining that dividends are subject to 3 times net leverage pre an initial public offering and 3.5 times post an initial public offering, and requiring annual appraisals to be provided, the source said.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

Floatel repaying debt

Floatel International, a Sweden-based owner and operator of offshore accommodation and construction support vessels, plans on using its new term loan to refinance existing debt.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the transaction.

Authentic Brands revised

Authentic Brands cut its seven-year first-lien term loan to $320 million from $335 million, raised pricing to Libor plus 450 bps from Libor plus 400 bps, set the original issue discount at 99, the wide end of the 99 to 99½ talk, and extended the 101 soft call protection to one year from six months, according to a market source.

Additionally, the eight-year second-lien term loan was trimmed to $105 million from $130 million and pricing was lifted to Libor plus 800 bps from Libor plus 750 bps, the source said.

Furthermore, the excess cash flow sweep was lifted to 75% with step-downs from 50% with step-downs, the $80 million general accordion basket was removed and the incremental was made subject to 3.75 first-lien net leverage and 5.5 times net secured leverage, and the $20 million available amount starter basket was eliminated and a 5.5 times total net leverage incurrence test was added for utilization of the available amount builder basket.

Both term loans still have a 1% Libor floor, and the second-lien term loan still has a discount of 99 and call protection of 102 in year one and 101 in year two.

Authentic Brands lead banks

Bank of America Merrill Lynch, KeyBanc Capital Markets, Barclays and Canaccord are leading Authentic Brands' now $425 million deal.

Proceeds will be used to refinance existing debt, redeem preferred stock, fund a dividend, which was reduced due to the downsizing of the term loans, and purchase a minority interest in the Marilyn Monroe brand.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Authentic Brands is a New York-based brand development and licensing company.

Wyle reworks deal

Wyle Services lifted pricing on its $250 million seven-year term loan to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, made it so the 25 bps pricing step-down is subject to Ba3/BB- corporate ratings instead of B1/B+ corporate ratings, and pushed out the 101 soft call protection to one year from six months, a source said.

The term loan continues to have a 1% Libor floor and an original issue discount of 99.

Recommitments were due on Wednesday, the source added.

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Regions Capital Markets are leading the deal (B1/BB) that will be used to refinance existing debt.

Current corporate ratings are B2/B+.

Wyle is an El Segundo, Calif.-based provider of high-tech aerospace engineering, information technology and scientific services to the federal government.

ION reveals deadline

In other news, ION Trading Technologies Sarl is asking lenders to place their orders for its roughly $1.15 billion credit facility by May 30, according to a market source.

The facility consists of a $40 million five-year revolver, a $400 million six-year first-lien term loan talked at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, a €300 million six-year first-lien term loan talked at Euribor plus 350 bps with a 1% floor, a discount of 99¾ and 101 soft call protection for one year, and a $300 million seven-year second-lien term loan talked at Libor plus 675 bps with a 1% Libor floor, a par offer price, and call protection of 102 in year one and 101 in year two

The deal launched with a bank meeting on Friday in London and with a call for U.S. investors on Tuesday.

UBS AG is leading the credit facility that will be used by the trading software provider to refinance existing debt.

Pregis closes

The buyout of Pregis Corp. North America by Olympus Partners from AEA Investors LLC has been completed, a news release said.

For the transaction, Pregis got a new $280 million credit facility (B2/B) consisting of a $50 million revolver and a $230 million first-lien covenant-light term loan.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 375 bps to 400 bps talk and the call protection was extended from six months.

Goldman Sachs Bank USA and Barclays led the deal.

Pregis is a Deerfield, Ill.-based protective packaging materials and systems manufacturer.

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