J.T. Baker, Brickman break; Texas Competitive up with notes exchange; Microsemi sets talk

By Sara Rosenberg

New York, Oct. 8 - J.T. Baker Holdings SA's credit facility freed up for trading on Friday, with the term loan quoted above its original issue discount price, and Brickman Group Ltd.'s bank deal also hit the secondary market.

Also, Texas Competitive Electric Holdings Co. LLC's bank debt headed higher following news that the company completed a private exchange offer for some of its notes.

Over in the primary market, Microsemi Corp. came out with price talk on its proposed credit facility as the deal was presented to lenders during the session, and HealthSouth Corp. closed the books on its revolving credit facility with the deal getting done at initial terms.

Also, Lightower Fiber Networks' pro rata deal has been met with strong demand, resulting in oversubscription ahead of the upcoming commitment deadline, and Angelica Corp.'s facility has good momentum as well.

J.T. Baker starts trading

J.T. Baker's credit facility broke for trading in the morning, with the $145 million term loan quoted at 99¾ bid, par ½ offered, according to a trader.

Pricing on the Phillipsburg, N.J.-based specialty chemical manufacturer's term loan is Libor plus 450 basis points with a 1.75% Libor floor, and it was sold at an original issue discount of 99.

During syndication, the term loan was upsized from $125 million, pricing was flexed down from Libor plus 500 bps and the discount was reduced from 98.

The $180 million credit facility (Ba3/BB-) also includes a $35 million revolver that was upsized from $20 million during syndication and is priced at Libor plus 450 bps with an original issue discount of 97.

Credit Suisse is the lead bank on the deal that will be used to back the already completed acquisition of Mallinckrodt Baker Inc. by New Mountain Capital LLC from Covidien for about $280 million.

Brickman frees up

Another deal to begin trading on Friday was Brickman's credit facility, with the $550 million six-year covenant-light term loan quoted at 99½ bid, par ½ offered on the break and then moving up to par ¾ bid, 101 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 550 bps with a step-down to Libor plus 525 bps at less than 5.0 times leverage and a 1.75% Libor floor. The paper was sold at an original issue discount of 99 and carries soft call protection of 102 in year one and 101 in year two.

During syndication, the term loan was upsized from $500 million, pricing was reduced from Libor plus 575 bps, the step-down was added, and the original issue discount was tightened from 98.

The company's $600 million credit facility (B1/B+) also includes a $50 million five-year revolver.

Brickman funding dividend recap

Proceeds from Brickman's credit facility will be used to fund a dividend payment and to refinance existing debt.

Other funding for the recapitalization is coming from $250 million of senior notes. The bonds were downsized from $300 million when the term loan was upsized.

Barclays and Bank of America are the lead banks on the credit facility, with Barclays the left lead.

Brickman is a Gaithersburg, Md.-based commercial landscaping company.

Texas Competitive rises

Texas Competitive's bank debt was stronger in trading as the company disclosed that it exchanged some senior notes for new senior secured second-lien notes, according to traders.

One trader was quoting the term loan B-1 at 80 bid, 80¾ offered, up from 79 bid, 79½ offered; the B-2 at 80¼ bid, 80¾ offered, up from 79 1/8 bid, 79½ offered; and the term loan B-3 at 79¾ bid, 80½ offered, up from 78¾ bid, 79¼ offered.

Meanwhile, a second trader was quoting the term loan B-1 and B-2 at 80 bid, 80½ offered, up from 79¼ bid, 79¾ offered, and the term loan B-3 at 79¾ bid, 80¼ offered, up from 79 bid, 79½ offered.

The second trader said that a possible reason for the bank debt's move "could be from rumors of a higher perceived recovery for bank debtholders from the bond deal."

Through the exchange offer, the Dallas-based energy company issued about $336 million of 15% senior secured second-lien notes due 2021 for about $478 million of its 10¼% senior notes due 2015 and 10½%/11¼% senior toggle notes due 2016.

The exchange offer was completed on Wednesday, but was first announced in an 8-K filed with the Securities and Exchange Commission on Friday.

Microsemi talk emerges

Switching to the primary, Microsemi held a bank meeting on Friday to kick off syndication on its proposed credit facility, and in connection with the launch, price talk was announced, according to a market source.

The $375 million seven-year term loan B is being talked at Libor plus 375 bps to 400 bps with a 1.5% Libor floor and an original issue discount of 99, the source said - pretty close to what was outlined in the commitment letter.

Specifically, the commitment letter had expected pricing on the term loan B at Libor plus 400 bps with a 1.5% floor and a discount of 99.

The $425 million senior credit facility, which is being led by Morgan Stanley, also includes a $50 million five-year revolver.

The credit facility commitment letter had the term loan split into a $125 million five-year term loan A and a $250 million seven-year term loan B, but the option was chosen to roll the debt into one institutional tranche prior to launch.

Microsemi buying Actel

Proceeds from Microsemi's credit facility will be used to help fund the acquisition of Actel Corp. for $20.88 per share through a cash tender offer and to refinance an existing revolver.

The total acquisition value is about $430 million, net of Actel's projected cash balance at closing.

Closing is expected in Microsemi's fiscal first quarter ending Jan. 2, subject to customary conditions, including the tender of a majority of the outstanding shares of Actel's common stock and regulatory approvals.

Microsemi is an Irvine, Calif.-based designer, manufacturer and marketer of analog and mixed-signal integrated circuits, semiconductors and RF subsystems. Actel is a Mountain View, Calif.-based supplier of low-power, mixed-signal and radiation-tolerant field programmable gate arrays.

HealthSouth wraps syndication

The commitment deadline hit HealthSouth's $500 million five-year senior secured revolving credit facility (Ba1/BB) on Friday, and the deal successfully syndicated at initial price talk of Libor plus 350 bps, according to a market source.

Pricing on the revolver will be able to fluctuate based on a grid.

Barclays Capital, Citigroup, Bank of America, Goldman Sachs and Morgan Stanley are the lead banks on the deal and offered lenders upfront fees based on commitment size.

Financial covenants include a minimum interest coverage ratio, a total leverage ratio and maximum capital expenditures.

HealthSouth refinancing debt

Proceeds from HealthSouth's revolver will be used to repay all of the company's term loan debt and replace the existing revolver, and for ongoing working capital requirements.

At June 30, the company had a $297.8 million term loan due in September 2015 and a $449.7 million term loan due in March 2013.

Other funds for the refinancing are coming from $525 million of senior notes. The bond deal had been upsized from $500 million.

HealthSouth is a Birmingham, Ala.-based provider of inpatient rehabilitative health care services.

Lightower sees interest

Lightower Fiber Networks' $230 million five-year credit facility is already oversubscribed well ahead of the commitment deadline that is coming up in the Oct. 11 week, according to a market source.

The facility consists of a $40 million revolver and a $190 million term loan A, with both tranches talked at Libor plus 400 bps with no Libor floor.

GE Capital and SunTrust are the lead banks on the deal that will be used to fund the acquisition of Lexent Metro Connect, a New York-based provider of custom built dark fiber networks.

Closing is expected in the fourth quarter, subject to regulatory approval.

Following the transaction, leverage will be 2.4 times.

Lightower Fiber Networks is a Boxborough, Mass.-based metro fiber network and bandwidth service provider.

Angelica going well

Angelica's $185 million credit facility (B2/B+) has seen a lot of interest since launching with a bank meeting on Oct. 4 and from some guys who got to take an early look at the deal, according to a market source.

The facility consists of a $35 million five-year revolver, a $50 million five-year term loan A and a $100 million six-year term loan B.

Price talk on the revolver and the term loan A is Libor plus 500 bps to 525 bps, and the term loan B is being talked at Libor plus 525 bps to 575 bps. The revolver has a 75 bps unused fee.

All tranches have a 1.75% Libor floor.

The term loan A and the term loan B are being offered at an original issue discount of 98.

Angelica lead banks

Macquarie and Jefferies are the joint lead arrangers on Angelica's credit facility, with Macquarie the left lead.

Proceeds will be used to fund a $35 million dividend payment to the sponsor, Trilantic Capital Partners, and to completely refinance an existing credit facility and mezzanine debt.

Commitments are due from lenders on Oct. 19 and closing is targeted for Oct. 26.

Total debt to EBITDA, excluding capital leases, is 3.3 times and including capital leases is about 3.8 times.

Angelica is a St. Louis-based provider of outsourced linen management services to the health care industry.

© 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.