Berry Global, Delek, Horizon break; Hudson River sets changes; Lucid accelerates deadline

By Sara Rosenberg

New York, May 17 – Berry Global Group Inc. modified sizes of its U.S. and euro term loans, updated spreads and tightened the original issue discount on the U.S. piece, and then the debt made its way into the secondary market on Friday.

Also, Delek US Holdings Inc. set the issue price on its add-on term loan B at the middle of guidance and then freed to trade, and Horizon Therapeutics plc (Horizon Pharma USA Inc.) saw its term loan B break for trading as well.

In more happenings, Hudson River Trading LLC increased the size of its add-on term loan B and adjusted the original issue discount, and Lucid Energy Group II Borrower LLC accelerated the commitment deadline for its term loan B-2.

Additionally, Victory Capital Holdings Inc., United Planet Fitness Partners (United PF Holdings LLC), Smart & Final Grocery (Saffron Borrowco LLC), Smart Foodservice (Sage Borrowco LLC), Big Ass Solutions (Big Ass Fans LLC) and Madrid (AI Plex AcquiCo) joined the near-term primary calendar.

Berry Global reworked

Berry Global lifted its U.S. seven-year covenant-lite term loan B to $4.25 billion from $2.7 billion, set pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

Additionally, the company trimmed its euro seven-year covenant-lite term loan B to $1.2 billion equivalent from $1.5 billion equivalent and lowered the spread to Euribor plus 250 bps from talk in the range of Euribor plus 275 bps to 300 bps, the source said. This tranche still has a discount of 99.5.

Unchanged on both term loans was the 0% floor, 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin plus Libor/Euribor thereafter.

Along with the U.S. term loan upsizing, the company reduced its senior secured notes offering to $1.25 billion from $2 billion and its second-lien senior secured notes offering to $500 million from $1 billion, the source continued.

Recommitments for the loans were due at 10:30 a.m. ET on Friday.

Berry hits secondary

After books closed, Berry Global’s new bank debt freed up for trading, with the U.S. term loan B quoted at par bid, 100¼ offered, another source added.

Goldman Sachs, Wells Fargo, JPMorgan, Morgan Stanley and RBC are leading the now $5.45 billion equivalent of term loans (Ba2/BBB-).

The new debt will be used to fund the acquisition of RPC Group plc for 793p per share in cash, or about £5 billion, including the refinancing of RPC’s net debt, and to pay fees and expenses associated with the transaction and refinancing of a term loan S due 2020.

Closing is expected early in the third quarter, subject to customary conditions.

Berry is an Evansville, Ind.-based supplier of a non-woven, flexible and rigid products used within consumer and industrial end markets. RPC is a U.K.-based provider of plastic and recycled products for packaging and selected non-packaging markets.

Delek updated, trades

Delek firmed the original issue discount on its fungible $250 million add-on covenant-lite term loan B (BBB-) due March 30, 2025 at 99.25, the midpoint of the 99 to 99.5 talk, a market source remarked.

The add-on term loan is priced at Libor plus 225 bps with a 0% Libor floor and has 101 soft call protection for six months.

After terms finalized, the add-on term loan emerged in the secondary market and levels were seen at 99½ bid, 99 7/8 offered, the source added.

Wells Fargo Securities is leading the deal that will be used to repay borrowings under the company’s ABL facility and pay transaction-related fees and expenses.

The company’s existing term loan B is sized at $693 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Horizon frees up

Horizon Therapeutics’ $518 million seven-year senior secured covenant-lite term loan B (Ba1/BB+) broke for trading too, with levels quoted at par bid, 100 3/8 offered, according to a market source.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Thursday, the discount on the term loan was revised from talk in the range of 99.5 to 99.75.

Citigroup Global Markets, Morgan Stanley Senior Funding and Goldman Sachs Bank USA are leading the deal that will be used to reprice and extend an existing term loan B due March 2024 priced at Libor plus 275 bps with a 1% Libor floor.

Closing is expected on May 22.

Horizon Therapeutics is a Dublin-based biopharmaceutical company.

Hudson River tweaked

Back in the primary market, Hudson River Trading raised its fungible add-on term loan B due April 2025 to $125 million from $100 million and moved the original issue discount to 99.875 from 99.75, according to a market source.

The add-on term loan is priced at Libor plus 350 bps with a 0% Libor floor and has 101 soft call protection for six months.

Books closed at noon ET on Friday, the source said.

J.P. Morgan Securities is leading the deal that will be used for general corporate purposes and for trading capital.

Along with the add-on term loan, the company is amending its existing credit agreement to remove and revise some covenants.

Hudson River is a New York-based multi-asset class quantitative trading firm.

Lucid revises timing

Lucid Energy moved up the commitment deadline for its non-fungible $100 million term loan B-2 (B/BB-) due Feb. 19, 2025 to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan B-2 is Libor plus 300 bps with a 1% Libor floor, an original issue discount of 95.25 to 96.25 and 101 soft call protection for six months.

Jefferies is leading the deal that will be used for general corporate purposes including the funding of capital expenditures.

Lucid Energy is a Dallas-based natural gas gathering and processing company operating in the Northern Delaware Basin.

Victory schedules meeting

Victory Capital Holdings set a bank meeting for 10 a.m. ET on Tuesday to launch its previously announced $1.23 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $100 million five-year revolver and a $1.13 billion seven-year term loan B.

Barclays, RBC Capital Markets and BMO Capital Markets are leading the debt that will be used to fund the acquisition of USAA Asset Management Co. for $850 million plus the opportunity for additional contingent payments based on future business performance.

Closing is expected on July 1, subject to regulatory approval and other customary conditions.

Victory Capital is a Brooklyn, Ohio-based asset management firm. USAA Asset Management is a San Antonio-based investment firm.

United Planet on deck

United Planet Fitness Partners will hold a bank meeting on Tuesday to launch $670 million of credit facilities, a market source said.

The facilities consist of a $20 million five-year revolver, a $465 million seven-year first-lien term loan, a $75 million delayed-draw seven-year first-lien term loan and a $110 million eight-year second-lien term loan, the source added.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Jefferies and Fifth Third are leading the deal that will be used to refinance existing debt and fund club acquisitions.

United Planet Fitness Partners is the largest operator of Planet Fitness Clubs in the U.S.

Smart Grocery sets launch

Smart & Final Grocery scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch $530 million of senior secured credit facilities, according to a market source.

The facilities consist of a $380 million seven-year covenant-lite term loan B and a $150 million ABL revolver, the source said.

Deutsche Bank Securities, BMO Capital Markets, RBC Capital Markets, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) and UBS Investment Bank are leading the deal that will be used to help fund the buyout of Smart & Final Stores Inc. by Apollo Global Management LLC.

Closing is expected by the third quarter, subject to more than 50% of the company’s shares being tendered, regulatory approvals and other customary conditions.

Smart & Final Grocery is a food retailer operating smaller-box, warehouse-style club stores.

Smart Foodservice coming soon

Smart Foodservice will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $455 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $50 million cash flow revolver and a $405 million seven-year covenant-lite term loan B, the source added.

Deutsche Bank Securities Inc., BMO Capital Markets Corp., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of Smart & Final Stores Inc. by Apollo Global Management LLC.

Closing is expected by the third quarter, subject to more than 50% of the company’s shares being tendered, regulatory approvals and other customary conditions.

Smart Foodservice is a retailer of bulk foodservice offerings almost exclusively catering to small restaurant businesses and commercial customers.

Big Ass joins calendar

Big Ass Solutions set a lender call for noon ET on Monday to launch a $100 million incremental first-lien term loan due May 21, 2024 that has a 1% Libor floor, according to a market source.

Commitments are due at noon ET on May 30, the source said.

Credit Suisse Securities (USA) and SunTrust Robinson Humphrey are leading the deal.

The new debt will be used to refinance a seller note and fund a shareholder distribution.

Lenders are being offered a 10 bps consent fee for an amendment, the source added.

There is currently about $245 million outstanding under the company’s existing first-lien term loan.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

Madrid readies deal

Madrid surfaced with plans to hold a bank meeting at 9:30 a.m. ET in New York on Monday and a bank meeting in London on Wednesday to launch €1,785,000,000 equivalent of credit facilities, a market source remarked.

The facilities consist of a €300 million 6.5-year multi-currency revolver, a €520 million equivalent U.S. dollar seven-year term loan B and a €965 million seven-year term loan B, the source added.

Barclays, Deutsche Bank and Goldman Sachs are the physical bookrunners on the deal. Mandated lead arrangers include Bank of America Merrill Lynch, Bank of China, Helaba, HSBC, RBC and NatWest.

The credit facilities will be used to help fund the buyout of Evonik Industries AG’s methacrylates business (Madrid) by Advent International for €3 billion.

Closing is expected by the third quarter, subject to customary conditions and regulatory approvals.

Madrid is a provider of methacrylate solutions to a variety of end markets, including paints and coatings, construction, automotive and healthcare.

© 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.