Phillips Plastics, La Paloma break; C.H.I. Overhead tweaks deal; Plaze firms new timing

By Sara Rosenberg

New York, Aug. 10 - Phillips Plastics Corp.'s credit facility made its way into the secondary market on Wednesday, with levels on the term loan quoted right around the original issue discount price in muted trading, and La Paloma Generating Co. LLC freed up as well.

Over in the primary, C.H.I. Overhead Doors made some changes to its credit facility, including increasing spreads on all tranches, widening the original issue discount on the first-lien debt and adding soft call protection to the first-lien term loan.

Also, Plaze Inc. nailed down revised timing on its proposed credit facility after delaying its bank meeting earlier this week.

Phillips Plastics frees up

Phillips Plastics' credit facility began trading on Wednesday, with the $200 million term loan quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan, as well as on a $45 million revolver, is Libor plus 500 basis points with a 1.5% Libor floor, and the debt was sold at an original issue discount of 99.

The deal was oversubscribed, and there had been chatter of some potential issuer-friendly changes, but because of recent market conditions, terms finalized at initial talk.

GE Capital Markets and BNP Paribas Securities Corp. are the lead banks on the $245 million credit facility (B1/B) that will be used to fund an acquisition and is expected to close on Friday.

Phillips Plastics is a Hudson, Wis.-based outsource provider of design and manufacturing services to the commercial and medical device and drug delivery markets.

La Paloma bid at OID

La Paloma's credit facility broke for trading in the morning after allocating late Tuesday, with both the $299.2 million six-year first-lien term loan (B2/B) and the $110 million 61/2-year second-lien term loan quoted at 95 bid, 96 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 550 bps with a 1.5% Libor floor, and it was sold at a discount of 95. There is 101 soft call protection for one year.

As for the second-lien term loan, pricing is Libor plus 875 bps with a 1.5% Libor floor, and it too was sold at an original issue discount of 95. The tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, pricing on the first-lien term loan firmed at the wide end of talk of Libor plus 525 bps to 550 bps, the discount on the first-lien loan widened from talk of 96 to 97, and the discount on the second-lien loan moved from talk of 97.

La Paloma getting revolver

La Paloma's $424.2 million credit facility also provides for a $15 million five-year working capital facility (B2/B).

Bank of America Merrill Lynch and Macquarie Capital are the lead arrangers on the deal that will be used to refinance existing first- and second-lien term loans that were obtained in 2005, prefund a debt service reserve, prefund 2011 through 2013 major maintenance and cash collateralize $30.2 million of letters of credit.

The sponsor involved in the 2005 transaction, Complete Energy, is no longer involved. Instead, the current ownership consortium is led by EIG Global Energy Partners and includes Rockland Capital.

La Paloma is a 1,022 MW combined-cycle gas-fired facility located in Kern, Calif.

Water Pik holds steady

Water Pik Inc.'s $140 million six-year term loan held firm at 99 bid, 99½ offered, which is where the loan broke for trading during the previous session, according to a market source.

Pricing on the term loan and on a $20 million five-year revolver is Libor plus 525 bps with a 1.5% Libor floor, and they were sold at an original issue discount of 99. The term loan includes 101 soft call protection for one year.

During syndication, the term loan was downsized to $130 million from $177 million and then upsized to $140 million, and pricing on the entire deal firmed at the wide end of initial talk of Libor plus 500 bps to 525 bps

GE Capital Markets is the lead bank on the $160 million credit facility (B2/B).

Water Pik funds recap

Proceeds from Water Pik's credit facility are being used to refinance existing debt and finance a dividend to the sponsors.

When the term loan was first downsized, the amount of the dividend was decreased, and then with the subsequent upsizing, the revised dividend size was increased by $10 million.

Closing on the facility was expected to take place on Wednesday.

Water Pik is a Fort Collins, Colo.-based developer and manufacturer of personal and oral health care products.

Amneal allocates

Amneal Pharmaceuticals LLC gave out allocations on its $250 million credit facility, but the deal was not seen trading in the secondary market since it was primarily placed with banks, according to a market source.

The facility consists of a $70 million revolver and a $180 million term loan A, with both tranches priced in line with talk at Libor plus 325 bps with no Libor floor.

GE Capital Markets and RBS Citizens are the lead banks on the deal that will be used to refinance existing debt.

At close, which is expected for Thursday, leverage will be 3.1 times.

Amneal Pharmaceuticals is a Bridgewater N.J.-based generic pharmaceuticals company.

C.H.I. flexes up

C.H.I. Overhead Doors came out with changes to its $203.5 million credit facility, including increasing pricing on the entire deal and sweetening some other first-lien terms, according to a market source.

Specifically, the $25 million five-year revolver and $127.5 million six-year first-lien term loan are now priced at Libor plus 575 bps, up from Libor plus 525 bps, and are being sold at an original issue discount of 98, as opposed to at 99, the source said. The 1.5% Libor floor was left intact.

Also, 101 soft call protection for one year was added to the first-lien term loan.

Meanwhile, the $51 million 61/2-year second-lien term loan is now priced at Libor plus 950 bps, up from Libor plus 925, while the 1.5% Libor floor, original issue discount of 98, and call protection of 103 in year one, 102 in year two and 101 in year three were left unchanged, the source remarked.

C.H.I. lead banks

GE Capital Markets and Wells Fargo Securities LLC are the lead banks on C.H.I. Overhead Doors' credit facility.

Proceeds will be used to help fund the buyout of the company by Friedman Fleischer & Lowe from JLL Partners.

Allocations are anticipated to go out early next week.

C.H.I. Overhead Doors is a garage door company and a manufacturer of residential sectional garage doors, as well as commercial sectional and rolling steel.

Plaze sets new launch

Plaze, a St. Clair, Mo.-based full service contract aerosol and liquid packager, firmed up timing on its proposed $150 million senior credit facility, scheduling a bank meeting for Aug. 17 after pushing off its earlier set launch from this past Tuesday, according to a market source.

The launch delay was caused by scheduling conflicts, the source said. When news of the postponement hit, it was heard that the meeting was targeted for either Aug. 16 or Aug. 17.

As was already reported, the facility consists of a $20 million revolver and a $130 million term loan.

GE Capital Markets and PNC Capital Markets LLC are the lead banks on the deal that will be used, along with $50 million of mezzanine debt, to fund the buyout of the company by Olympus Partners.

Leverage through the senior facility is 3.75 times and leverage through the mezzanine financing is 5.25 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.