Valeant rises with Walgreens agreement; Konecranes Terex frees up; MB Aerospace updated

By Sara Rosenberg

New York, Dec. 15 – Valeant Pharmaceuticals International Inc.’s term loan debt was stronger in the secondary market on Tuesday after the company disclosed new fulfillment agreements with Walgreens and distribution plans, and Konecranes Terex plc’s new bank debt broke for trading.

Meanwhile, over in the primary market, MB Aerospace finalized the spread on its term loan at the tight end of guidance.

Valeant trades higher

Valeant Pharmaceuticals saw its term debt rise in trading on Tuesday, spurred on by the company’s Walgreens announcement and a better tone in the market in general, according to a trader.

The term loan F was quoted at 95¼ bid, 96¼ offered, up from 94½ bid, 95½ offered, the trader said.

In the morning, Valeant put out a release saying that it entered into new fulfillment agreements with Walgreens, a drugstore chain, while indicating it intends to extend this distribution model to additional participating independent retail pharmacies.

With the 20-year Walgreens fulfillment agreement, Valeant will reduce prices of its branded prescription-based dermatological and ophthalmological products by 10%.

The agreement takes effect the first quarter of 2016.

Also, Walgreens and Valeant entered into a separate agreement under which Valeant will distribute more than 30 branded products, where generics are available, in the dermatology, ophthalmology, gastrointestinal and neurology/other therapeutic areas through Walgreens at generic prices, beginning in the second half of 2016.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Konecranes Terex breaks

Konecranes Terex’s new deal made its way into the secondary market, with the $355 million seven-year term loan B quoted at 98 bid, 99 offered and the €500 million seven-year term loan B quoted at 98½ bid, 99 offered, a trader remarked.

Pricing on the $900 million-equivalent term loan B is Libor plus 375 basis points with a 0.75% floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

Recently, the U.S. and euro tranche sizes finalized, with the euro piece ending up larger than the up to €400 million amount outlined at launch, the spread was set at the high end of the Libor plus 350 bps to 375 bps talk, the discount widened from 99 and the call protection was extended from six months.

Along with the term loan, the company is planning on getting a $700 million multi-currency revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Commerzbank, Credit Agricole and Nordea Bank are the leads on the credit facility (Ba2/BB+).

Konecranes, Terex merging

Proceeds from Konecranes Terex’s credit facility will be used to help fund the merger of Konecranes plc and Terex Corp., and to refinance existing bank facilities at both companies as needed. The combined company will be named Konecranes Terex plc.

Upon completion of the transaction, Terex shareholders will own about 60% of the combined company and Konecranes shareholders will own around 40%.

Closing is expected in the first half of 2016, subject to approval by Terex and Konecranes shareholders, regulatory approvals and customary conditions.

Konecranes is a Hyvinkaa, Finland-based provider of lifting solutions as well as services for lifting equipment and machine tools of all makes. Terex is a Westport, Conn.-based diversified equipment manufacturer.

MB Aerospace firms terms

Switching to the primary market, MB Aerospace set pricing on its $150 million first-lien term loan at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The company’s $185 million credit facility also includes a $35 million revolver.

SG Americas Securities LLC and ING Capital are leading the deal that is being used to help fund the buyout of the company by Blackstone from Arlington Capital Partners.

Equity is greater than 50% of total pro forma capitalization.

The transaction not only allocated on Tuesday, but it closed as well, the source added.

MB Aerospace is a Motherwell, Scotland-based tier I engine component manufacturer and repair business.

ProQuest closes

In other news, ProQuest LLC completed its acquisition of Ex Libris Group, a provider of library automation solutions, according to a news release.

To help fund the transaction, ProQuest got a new $275 million incremental first-lien term loan (B2/B) priced at Libor plus 475 bps with a 1% Libor floor and issued at a discount of 97.5, after widening the other day from 99.

With the incremental loan, the company’s existing term loan was repriced to Libor plus 475 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor, and all of the debt got 101 soft call protection for six months.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC led the debt.

Other funds for the transaction came from a $125 million pre-placed second-lien term loan (Caa1/B-) and equity.

ProQuest is an Ann Arbor, Mich.-based information solutions provider.

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