M/A-COM starts trading; Albertsons extended loan seen above par; Flint, Hoffmaster revised

By Sara Rosenberg

New York, May 1 - M/A-COM Technology Solutions Inc. sweetened the spread, offer price and call protection on its term loan, and then the debt freed up for trading on Thursday, Albertsons LLC saw levels surface on its extended term loan, and the Gymboree Corp.'s term loan softened on the back of recent earnings news.

In more happenings, Flint Group raised spreads on its first- and second-lien term loans and adjusted original issue discount talk on the tranches, and Hoffmaster Group Inc. reworked tranche sizes and updated pricing.

Furthermore, UTEX Industries Inc., Anchor Glass Container Corp., NextGen Finance LLC and Pregis Corp. North America released talk with launch.

M/A-COM tweaked, breaks

M/A-COM lifted pricing on its $350 million seven-year first-lien term loan B (BB-) to Libor plus 375 basis points from talk of Libor plus 325 bps to 350 bps, moved the original issue discount to 99¼ from 991/2, extended the 101 soft call protection to one year from six months and eliminated the 18-month MFN sunset provision, according to a market source.

The 0.75% Libor floor on the loan was unchanged.

With final terms in place, the B loan freed up for trading on Thursday afternoon, with levels seen at 99½ bid, par ½ offered, another source remarked.

Goldman Sachs Bank USA, RBS Citizens and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt.

M/A-COM is a Lowell, Mass.-based supplier of high performance analog RF, microwave and millimeter wave products that enable next-generation internet and modern battlefield applications.

Albertsons levels surface

Also in trading, Albertsons' $1,444,000,000 covenant-light term loan B-2 due March 21, 2019, which now includes the term loan B-1 debt that was extended from March 21, 2016, was seen quoted at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the B-2 loan is Libor plus 375 bps with a 1% Libor floor and the extended debt was issued at par. There is 101 soft call protection for six months that was added during syndication.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the extension that will be effective on Monday.

With the extension, the food and drug retailer received consents to amend its existing credit facility to allow for the incurrence of debt for the Safeway Inc. acquisition.

The amendment, for which lenders are getting a 25 bps consent fee, is conditional on the acquisition closing, but the term loan B-1 extension is occurring whether or not the acquisition is completed.

Gymboree drops

Gymboree's term loan feel to 80 ½ bid, 81 offered from 85½ bid, 86½ offered as investors continued to react to the company's recent disappointing earnings announcement, according to a trader.

For the fiscal fourth quarter, the company reported net sales of $351 million, down from $397.6 million the prior year, gross profit of $124.5 million, down from $144.8 million in the previous year, net loss of $169.8 million compared to $5.4 million in the same quarter of fiscal 2012, and adjusted EBITDA of $25 million, versus $47.7 million last year.

Also, the company revealed that it expects adjusted EBITDA for the first quarter of fiscal 2014 to be in the range of $17 million to $22 million.

Gymboree is a San Francisco-based children's specialty retailer.

Flint reworks deal

Back in the primary, Flint Group raised pricing on its $860 million seven-year covenant-light first-lien term loan (B1/B+) and €625 million seven-year covenant-light first-lien term loan (B1/B+) to Libor/Euribor plus 375 bps from Libor/Euribor plus 350 bps and revised original issue discount talk to 99 to 99½ from just 991/2, according to a market source.

Meanwhile, pricing on the $205 million eight-year covenant-light second-lien term loan (Caa1/B-) and €150 million eight-year covenant-light second-lien term loan (Caa1/B-) was increased to Libor/Euribor plus 725 bps from Libor/Euribor plus 700 bps, the discount talk on the U.S. second-lien term loan was changed to 99 to 99½ from 99¼ and the offer price talk on the euro second-lien term loan was adjusted to 99½ to par from 991/4, the source said.

As before, the term loans have a 1% floor, the first-lien term debt has 25 bps pricing step-down at 3.25 times net first-lien leverage and 101 soft call protection for six months, and the second-lien debt has hard call protection of 102 in year one and 101 in year two.

Flint ticking fee

Flint's term loans have a ticking fee of the full spread starting on day 31 from allocation that is not payable on cashless rolled commitments.

In addition to the term loans, the company's credit facility includes a €150 million five-year revolver (B1/B+) that has a 50 bps commitment fee.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA are the lead banks on the deal, with Deutsche the left lead on the first-lien term loan and Morgan Stanley the left lead on the second-lien loan.

Flint modifies incremental

Another change made to Flint's credit facility was the reduction of incremental allowance to €320 million from €450 million plus a ratio based test that was lowered to 3.6 times first-lien leverage for first-lien incurrence and 4.5 times net leverage for second-lien incurrence.

Also, the MFN sunset provision was removed, the restricted payments unlimited ratio prong was revised to 3.5 times from 4 times, the consolidated EBITDA run rate add back timing qualifier was decreased to 18 months from 24 months, and cash management was amended to allow third party cash management financial institutions to benefit from security, the source added.

Commitments remained due on Thursday.

Proceeds will help fund the acquisition of the Luxembourg-based supplier of inks and other print consumables by Goldman Sachs Merchant Banking Division and Koch Equity Development LLC from CVC Capital Partners.

Hoffmaster restructures

Hoffmaster Group raised its six-year first-lien covenant-light term loan to $280 million from $265 million, added a pricing step-down to Libor plus 400 bps at 3.25 times first-lien leverage and set the original issue discount at 99, the wide end of the 99 to 99½ talk, according to a market source.

The first-lien term loan still has opening pricing of Libor plus 425 bps, a 1% Libor floor and 101 soft call protection for six months.

As for the seven-year second-lien covenant-light term loan, it was cut to $84 million from $104 million, the spread was flexed to Libor plus 900 bps from Libor plus 825 bps, the discount was changed to 98½ from 99, and the call protection was sweetened to 103 in year one, 102 in year two and 101 in year three from 103 in year one and 101 in year two, the source said.

The second-lien term loan continues to have a 1% Libor floor.

Hoffmaster lead banks

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Macquarie Capital are leading Hoffmaster's now $399 million credit facility, which also includes a $35 million revolver.

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

Proceeds will be used by the Oshkosh, Wis.-based producer of specialty disposable tabletop products to refinance existing debt.

UTEX discloses talk

In more primary news, UTEX Industries held its bank meeting on Thursday, launching its $475 million seven-year covenant-light first-lien term loan B (B2/B) with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Also, the $200 million eight-year covenant-light second-lien term loan (Caa2/CCC+) was launched at Libor plus 750 bps with a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two.

And, the $50 million five-year revolver (B2/B) was launched at Libor plus 325 bps, the source said.

Commitments for the $725 million senior secured credit facility are due at noon ET on May 9.

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Societe Generale and UBS Securities LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

UTEX is a Houston-based manufacturer of engineered sealing and other specialty products.

Anchor Glass pricing

Anchor Glass Container its $335 million seven-year first-lien term loan with talk of 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, according to a market source.

The company's $435 million credit facility also includes a $100 million five-year ABL revolver.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund KPS Capital Partners LP's buyout of the company from Ardagh Holdings USA Inc.

Closing is expected in the second or third quarter, subject to customary conditions and regulatory approvals.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products for the beer, liquor, food, beverage and ready-to-drink end markets.

NextGen guidance

NextGen Finance came out with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $370 million seven-year first-lien covenant-light senior secured term loan B that launched with a morning meeting, a market source remarked.

In addition, talk on the company's A$75 million five-year revolver emerged at Libor plus 325 bps, subject to a grid, with no floor and a discount of 991/2, the source continued.

Commitments for the credit facility (Ba3) are due on May 15 and closing is expected on May 20.

Morgan Stanley Senior Funding Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt, including an intercompany loan, and for general corporate purposes.

Nextgen is a supplier of network connectivity, Data Centre facilities and cloud services to Australian businesses, government agencies and telecommunications service providers.

Pregis launches

Pregis launched with a morning meeting its $230 million first-lien covenant-light term loan with talk of 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, according to a market source.

The company's $280 million credit facility (B2) also includes a $50 million revolver.

Commitments are due on May 14, the source said.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used to help fund the buyout of the company by Olympus Partners from AEA Investors LLC.

Closing is expected this month.

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

Signode closes

In other news, the buyout of Signode Industrial (Industrial Packaging Group) by Carlyle Group from Illinois Tool Works Inc. has been completed, a news release said.

For the transaction, Signode got $1.75 billion of loans (B1/B), comprised of a $1.35 billion U.S. tranche and a $400 million euro equivalent tranche.

Pricing on the U.S. term loan is Libor plus 300 bps, after firming during syndication at the low end of the Libor plus 300 bps to 325 bps talk, and pricing on the euro equivalent term loan is Euribor plus 325 bps, after finalizing during syndication at the low end of the Euribor plus 325 bps to 350 bps talk. Both term loans have a 25 bps step-down in pricing when net leverage is 4 times, a 1% floor and 101 soft call protection for six months, and both loans were sold at a discount of 993/4, after tightening from 991/2.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC led the deal for the Glenview, Ill.-based manufacturer of strap, stretch and protective packaging for consumables, tools and equipment.

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