Scientific Games, Lightstone, EG Group, Consolidated Container, US LBM break for trading

By Sara Rosenberg

New York, Feb. 2 – Scientific Games International Inc., Lightstone Holdco LLC, EG Group and Consolidated Container Co. LLC all freed to trade on Friday, and US LBM Holdings LLC broke after setting the spread on its term loan at the tight end of guidance.

Also, Paladin Brands Holding Inc. (IES) increased the size of its incremental term loan B, and Robertshaw US Holding Corp., On Assignment Inc., Equian LLC, Apex Tool Group LLC, Virtus Investment Partners Inc., Charter NEX US Inc. and Idera joined the near-term primary calendar.

Scientific Games frees up

Scientific Games’ $4,175,000,000 covenant-light term loan B-5 due Aug. 14, 2024 emerged in the secondary market on Friday, with levels quoted at par ¾ bid, 101 offered, according to a trader.

Pricing on the term loan, which includes $900 million of incremental debt, is Libor plus 275 basis points with a 0% Libor floor. The debt was issued at an original issue discount of 99.75 for new dollars and at par for rolled dollars, and includes 101 soft call protection for six months.

During syndication, the term loan was upsized from $3,775,000,000 and the spread was set at the low end of the Libor plus 275 bps to 300 bps talk.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan, Fifth Third, Credit Suisse Securities (USA) LLC, Citizens Bank, Macquarie Capital (USA) Inc., PNC and Goldman Sachs Bank USA are leading the deal.

Proceeds from the loan and $900 million, upsized from $500 million, and €575 million in notes will be used to refinance an existing term loan B-4 and other debt. The additional proceeds raised from the recent upsizing will refinance the remaining 7% senior secured notes due 2022, pay breakage costs and repay revolver borrowings.

Scientific Games is a Las Vegas-based gaming and technology company.

Lightstone hits secondary

Lightstone Holdco’s strip of $1,575,000,000 covenant-light term loan B due January 2024 and $100 million term loan C (funded letter-of-credit facility) due January 2024 debt broke as well, with levels quoted at par ½ bid, 101¼ offered, a market source said.

Pricing on the debt is Libor plus 375 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, the spread on the loans firmed at the low end of the Libor plus 375 bps to 400 bps talk.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice existing term loan B and term loan C debt down from Libor plus 450 bps with a 1% Libor floor.

Lightstone is a Princeton, N.J. owner of a portfolio of four power generation facilities located in the PJM region.

EG Group tops issue price

EG Group’s $500 million seven-year term loan B (B2/B/B) freed to trade as well, with levels quoted at 101 bid, 101½ offered, according to a trader.

Pricing on the U.S. loan is Libor plus 400 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company is also getting a €1.985 billion seven-year term loan B (B2/B/B) priced at Euribor plus 400 bps with a 0% floor and issued at 99.5, and a £400 million seven-year term loan B (B2/B/B) priced at Libor plus 475 bps with a 0% Libor floor and issued at a discount of 99.75. These tranches have a 101 soft call for six months too.

During syndication, pricing on the U.S. loan was lowered from talk in the Libor plus 425 bps to 450 bps range, the spread on the euro loan finalized at the low end of the Euribor plus 400 bps to 425 bps talk, pricing on the GBP loan firmed at the low end of the Libor plus 475 bps to 500 bps talk, and the discount on the U.S. and GBP terms loans was changed from 99.5.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund the acquisition of 1,165 Esso sites in Italy and 1,017 Esso sites in Germany and to refinance outstanding debt facilities.

EG Group is a European independent forecourt/convenience-store retailer.

Consolidated Container breaks

Consolidated Container’s roughly $603.5 million term loan B (B3/B+) due May 22, 2024 hit the secondary, with levels quoted at par 7/8 bid, 101 3/8 offered, a trader remarked.

Pricing on the loan is Libor plus 300 bps with a 25 bps step-down in pricing if corporate ratings are B2/B or better and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

During syndication, the step-down was added to the loan.

Current corporate ratings are B3/B+.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan B.

Consolidated Container is an Atlanta-based maker of plastic packaging.

US LBM firms, trades

US LBM Holdings finalized pricing on its $848 million first-lien term loan due August 2022 (B3/B+) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source said.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

With final terms in place, the loan began trading and levels were quoted at par ½ bid, 101¼ offered, another source added.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Paladin upsizes

In more happenings, Paladin Brands lifted its fungible incremental term loan B due Aug. 15, 2022 to $61.5 million from $35 million, according to a market source.

Like the existing loan, the incremental loan is priced at Libor plus 550 bps with a stepdown to Libor plus 500 bps when first-lien net leverage is less than 3.25 times and a 0% Libor floor, and has 101 soft call protection through Sept. 26, 2018.

The incremental loan is offered at an original issue discount of 99.5, the source said.

Bank of America Merrill Lynch is leading the deal that will be used with revolver borrowings to refinance all, instead of a portion as originally planned, of the company’s existing subordinated second-lien term loan.

Paladin is a subsidiary of IES, an Oak Brook, Ill.-based manufacturer of engineered equipment with applications in the construction, demolition, recycling, mining, utility, forestry, landscaping and agriculture end-markets.

Robertshaw on deck

Robertshaw set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $655 million of credit facilities, according to a market source.

The facilities consist of a $50 million ABL revolver, a $480 million seven-year covenant-light first-lien term loan and a $125 million eight-year covenant-light second-lien term loan, the source said.

Both term loans have a 1% Libor floor, the first-lien term loan has 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.

Commitments are due by the end of day on Feb. 15, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Robertshaw is an Itasca, Ill.-based designer and manufacturer of systems and controls used in residential and commercial appliances, HVAC and transportation applications.

On Assignment coming soon

On Assignment will hold a lender meeting and call on Tuesday to launch an $822 million seven-year incremental covenant-light term loan B talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of ECS Federal LLC from Roy Kapani, the company’s majority owner and founder, and Lindsay Goldberg for $775 million in cash.

In order to allow for the transaction, the company will seek an amendment to its existing $578 million term loan B due June 5, 2022 that is priced at Libor plus 200 bps with a 0% Libor floor.

Existing lenders will receive a 7.5 bps amendment fee and 101 soft call protection for six months on the existing term loan B, the source added.

Commitments are due on Feb. 20.

Closing is expected on April 2, subject to regulatory approvals and customary conditions.

On Assignment is a Calabasas, Calif.-based provider of IT and professional services in the technology, creative/digital, engineering and life sciences sectors. ECS is a Fairfax, Va.-based provider of cyber security, cloud, DevOps, IT modernization and advanced science and engineering solutions to government enterprises.

Equian readies loan

Equian scheduled a lender call for 1 p.m. ET on Monday to launch a $315 million incremental term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of OmniClaim and pay related fees and expenses.

Equian is an Indianapolis-based payment integrity platform.

Apex plans deal

Apex Tool Group set a lender call for 2 p.m. ET on Monday to launch $1,088,600,000 of credit facilities, a market source remarked.

The facilities consist of a $175 million revolver due 2021 and a $913.6 million term loan due 2022, the source added.

Barclays is leading the deal that will be used to extend an existing revolver by two years, to extend an existing term loan by two years and to redeem $125 million of the existing $450 million 7% senior notes due 2021 at the current call price of 101.75%.

Bain Capital is the sponsor.

Apex Tool is a Sparks, Md.-based manufacturer and supplier of hand and power tools for industrial, commercial and demanding do-it-yourself applications.

Virtus schedules launch

Virtus Investment Partners will hold a lender call at 11 a.m. ET on Monday to launch a $105 million incremental senior secured term loan B and a repricing of its existing $258.7 million senior secured term loan, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

The incremental loan will be used to fund an acquisition.

Virtus is a Hartford, Conn.-based provider of investment management products and services.

Charter NEX joins calendar

Charter NEX set a lender call for 1 p.m. ET on Tuesday to launch a repricing of its term loan, a market source remarked.

Jefferies LLC is leading the deal.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Idera plans call

Idera surfaced with plans to hold a call at 1 p.m. ET on Monday for credit facility lenders, according to a market source.

Jefferies LLC is leading the deal.

Idera is a Houston-based provider of software tools for databases.

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