Pregis, Mannington Mills, Clearwater Paper, BroadStreet Partners, LegalShield break

By Sara Rosenberg

New York, July 25 – A number of deals made their way into the secondary market on Thursday, including Pregis LLC, Mannington Mills, Clearwater Paper Corp., BroadStreet Partners Inc. and LegalShield.

Meanwhile, in the primary market, Midcontinent Communications added a pricing step-down to its term loan B and tightened the original issue discount, and Veritext Corp. adjusted the original issue discount on its add-on term loan.

Also, United Road Services Inc. lifted the spread on its incremental first-lien term loan, and AmWINS Group LLC moved up the commitment deadline for its incremental first-lien term loan.

In addition, UGI Energy Services LLC, Franklin Energy Group and DynCorp International disclosed price talk with launch.

Pregis frees up

Pregis’ credit facilities began trading on Thursday, with the $615 million seven-year covenant-lite first-lien term loan (B2/B) quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points with a 25 bps step-down and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Wednesday, pricing on the first-lien term loan was set at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added and the discount was modified from 99.

The company’s $955 million of credit facilities also include a $125 million revolver (B2/B) and a $215 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from Olympus Partners.

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

Mannington Mills breaks

Mannington Mills’ credit facilities freed to trade too, with the $300 million seven-year term loan B (B1/BB-) quoted at 99¼ bid, par ¼ offered on the break and then it moved up to 99 7/8 bid, par 3/8 offered, a trader remarked.

Pricing on the term loan B is Libor plus 400 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan finalized at the low end of the Libor plus 400 bps to 425 bps talk.

The company’s $425 million of credit facilities also include a $125 million asset-based revolver.

RBC Capital Markets Corp. and SunTrust Robinson Humphrey Inc. are leading the term loan, and BofA Securities Inc. is the left lead on the revolver.

The credit facilities, which are expected to close on Friday, will be used to refinance existing debt.

Pro forma net leverage is 3.2x.

Mannington is a Salem, N.J.-based manufacturer of flooring solutions to customers in both the commercial and residential construction markets.

Clearwater tops OID

Clearwater Paper’s $300 million seven-year term loan B (Ba1/BB+) emerged in the secondary market as well and was seen quoted at 99¾ bid, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 25 bps step-down at 4.25x total net leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 325 bps to 350 bps talk, the step-down was added and the MFN was revised to 50 bps for life from for 12 months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance borrowings under an existing revolving credit facility.

In addition to the term loan, the company is putting in place a new $250 million asset-based revolver for working capital and liquidity needs.

Clearwater Paper is a Spokane, Wash.-based pulp and paper product manufacturer.

BroadStreet hits secondary

BroadStreet Partners’ fungible $135 million add-on term loan B (B2/B) due November 2023 also broke, with levels quoted at 99 7/8 bid, par ¼ offered, a trader said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the company’s existing $735 million term loan B and was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the add-on term loan was changed from 99.5.

RBC Capital Markets LLC, BofA Securities Inc., BMO Capital Markets, Barclays, Bank of Nova Scotia and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for acquisitions and to repay revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

LegalShield starts trading

Another deal to free up was LegalShield’s fungible $60 million add-on first-lien term loan B (B1/B) due May 1, 2025, with levels quoted at 99¾ bid, par 1/8 offered, a trader remarked.

Pricing on the add-on first-lien term loan is Libor plus 325 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.5.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., KKR Capital Markets, Capital One and BMO Capital Markets are leading the deal that will be used to repay revolver borrowings and consummate near-term acquisitions.

The company’s existing first-lien term loan B is sized at $678 million.

LegalShield is an Ada, Okla.-based provider of legal plans and identity theft solutions.

Midcontinent sets changes

Moving to the primary market, Midcontinent Communications added a step-down to Libor plus 200 bps when leverage gets below 3.5x to its $650 million seven-year covenant-lite first-lien term loan B and revised the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan is initially priced at Libor plus 225 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Previously in syndication, the term loan was downsized from $685 million as the company upsized its senior notes offering to $350 million from $300 million.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, CoBank, TD Securities (USA) LLC and MUFG are leading the loan that will be used with the new bond offering to repay existing bank debt and notes.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

Veritext tweaked

Veritext tightened the original issue discount on its fungible $50 million add-on term loan to 99.75 from 99.5, according to a market source.

The add-on term is priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to repay revolving credit facility borrowings.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

United Road revised

United Road Services raised pricing on its fungible $92 million incremental covenant-lite first-lien term loan (B2/B) due September 2024 to Libor plus 575 bps from Libor plus 525 bps, a market source remarked.

Also, the company eliminated an amendment request for which existing holders were being offered a 25 bps amendment fee, the source continued.

Due to the change in spread on the incremental term loan, pricing on the company’s existing first-lien term loan will be increased to Libor plus 575 bps from Libor plus 525 bps for fungibility.

As before, the incremental term loan has a 1% Libor floor and an original issue discount of 98.88.

Commitments are due at noon ET on Monday, extended from 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions.

United Road is a Romulus, Mich.-based provider of vehicle transport and logistics.

AmWINS moves deadline

AmWINS accelerated the commitment deadline for its fungible $250 million incremental first-lien term loan (B1/B+) due January 2024 to noon ET on Friday from close of business on Monday, according to a market source.

Talk on the incremental term loan is Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.05 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, which will include acquisitions currently under letters of intent.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

UGI Energy guidance

UGI Energy Services held its bank meeting on Thursday afternoon and, a few hours before the event kicked off, price talk was announced on its $700 million seven-year term loan B (Ba3//BB+) at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Aug. 7.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of the equity interests of Columbia Midstream Group LLC from TC Energy Corp. for about $1,275,000,000, subject to customary adjustments at closing.

Pro forma net total leverage is 2.7x based on March 31 pro forma adjusted EBITDA of $252 million.

Closing is expected in id-August, subject to customary conditions.

UGI Energy, a subsidiary of UGI Corp., is a provider of natural gas gathering, processing and energy services in the Appalachian Basin.

Franklin proposed terms

Franklin Energy Group came out with talk on its $325 million seven-year covenant-lite first-lien term loan (B1) and $120 million eight-year second-lien term loan (Caa1) with its bank meeting, a market source said.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount that is still to be determined and hard call protection of 102 in year one and 101 in year two, the source added.

The company’s $480 million of credit facilities also include a $35 million five-year revolver (B1).

Commitments are due on Aug. 8.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by ABRY Partners.

Franklin Energy is a Port Washington, Wis.-based vertically-integrated demand-side management company offering outsourced program administration services, product fulfillment and customer engagement software.

DynCorp floats talk

DynCorp launched at its morning bank meeting its $360 million six-year term loan B at talk of Libor plus 500 bps to 525 bps with a 0% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for one year.

The company’s $430 million of senior secured credit facilities (Ba3/BB) also include a $70 million five-year revolver.

Commitments are due at noon ET on Aug. 8, the source said.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Barclays are leading the deal that will be used with cash on hand to refinance the company’s capital structure, including its $390.5 million of 11 7/8% senior secured second-lien notes due 2020.

Closing is expected during the week of Aug. 12.

DynCorp is a McLean, Va.-based provider of aviation, logistics, training, intelligence and operational solutions.

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