Freif NAP, FullBeauty Brands free to trade; Post Holdings tweaks term loan offer price

By Sara Rosenberg

New York, March 20 – Freif NAP I Holdings III LLC’s term loans made their way into the secondary market on Friday with the strip of tranche B and C debt quoted above their original issue discounts, and FullBeauty Brands began trading as well.

Over in the primary market, Post Holdings Inc. tightened the original issue discount on its incremental term loan and moved up the commitment deadline, and Murray Energy Corp./Foresight Energy LP, American Tire Distributors Inc. and National Financial Partners Corp. came out with price talk on their term loans in connection with their launches.

Freif starts trading

Freif NAP I Holdings’ strip of $250 million term loan B and $45 million term loan C debt freed up on Friday with levels seen at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loans is Libor plus 375 basis points with a 1% Libor floor and they were sold at an original issue discount of 99½. The debt includes 101 soft call protection for one year.

During syndication, the discount on the loans was tightened from 99.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the $295 million of seven-year term loans (Ba3/BB-) that will be used to refinance existing debt and fund the acquisition of power facilities.

Freif is an owner of power generation assets.

FullBeauty breaks

Another deal to hit the secondary market was FullBeauty Brands’ $160 million add-on first-lien term loan, with levels quoted at 99 7/8 bid, par 5/8 offered, a trader remarked.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Recently, the spread on the loan firmed at the low end of the Libor plus 375 bps to 400 bps talk.

Goldman Sachs Bank USA, Jefferies Finance LLC and BMO Capital Markets Corp. are leading the deal that will be used to help fund a dividend.

FullBeauty Brands, previously known as OneStopPlus Group, is a New York-based catalog retailer and online marketplace for plus-size consumers.

Post modifies OID

Switching to the primary market, Post Holdings changed the original issue discount on its fungible $700 million incremental secured term loan B (Ba2) due June 2, 2021 to 99½ from 99 and accelerated the commitment deadline to noon ET on Monday from April 1, according to a market source.

The incremental term loan is still priced at Libor plus 300 bps with a 0.75% Libor floor, in line with the company’s existing $881 million term loan B, and the debt still includes 101 soft call protection for six months.

Additionally, the incremental term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, the source said.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal.

Post acquiring MOM

Proceeds from Post’s incremental term loan, an already completed common stock sale and cash on hand will be used to fund the purchase of MOM Brands Co. for $1.05 billion in cash and the issuance of about 2.45 million shares of Post common stock to the current owners of MOM Brands.

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

Post is a St. Louis-based consumer packaged goods holding company operating in the center-of-the-store, active nutrition, refrigerated and private label food categories. MOM Brands is a Lakeville, Minn.-based cereal company.

Murray/Foresight guidance

Murray Energy/Foresight Energy held their bank meeting on Friday morning, and with the event, price talk on the companies’ $2.25 billion in term loan B debt (Ba3) surfaced, according to a market source.

Talk on the $1.6 billion term loan B at Murray Energy is Libor plus 575 bps with a 1% Libor floor and an original issue discount of 98, and talk on the $650 million term loan B at Foresight Energy is Libor plus 475 bps with a 1% Libor floor and a discount of 99, the source said.

Commitments are due on April 1.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Murray buying Foresight

Proceeds from the Murray and Foresight term loans will be used to help fund Murray Energy’s acquisition of an 80% voting interest in Foresight Energy GP LLC with a 77.5% interest in the incentive distribution rights and about 50% of the limited partner interest in Foresight Energy LP, to refinance Murray Energy’s existing term loan B and to refinance Foresight Energy’s existing term loan and revolver.

The companies revealed in a recent news release that Foresight Energy also plans on getting $125 million asset-based revolver and Murray Energy plans on issuing about $860 million of senior secured second-lien notes for the transaction.

Furthermore, Murray Energy plans to amend its existing asset-based credit facility to permit the acquisition and related financing transactions.

St. Clairsville, Ohio-based Murray Energy and St. Louis-based Foresight Energy are coal companies.

American Tire sets talk

American Tire Distributors disclosed talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99½ and 101 hard call protection for one year on its $720 million 6½-year covenant-light term loan that launched with a call during the session, a market source said.

Bank of America Merrill Lynch leading the deal.

American Tire, a Huntersville, N.C.-based replacement tire distributor, will use the new term loan to refinance existing term loan debt.

National Financial launches

National Financial Partners approached lenders with a fungible $125 million add-on covenant-light term loan B due July 2020 that is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 98¾ to 99 and 101 soft call protection for six months, according to a market source.

The spread and floor on the add-on matches the existing term loan B, and the existing debt will get the same 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Thursday.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle market companies, financial advisers and high net worth individuals.

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