Post Holdings, MSC Software, Printpack free to trade; primary sees multiple deal launches

By Sara Rosenberg

New York, May 28 - Post Holdings Inc.'s term loan hit the secondary market on Wednesday with the debt seen trading above its original issue discount, and MSC Software Corp. and Printpack Holdings Inc. freed up as well.

Switching to the primary, Arizona Chemical Inc., Ryman Hospitality Properties Inc. (RHP Hotel Properties LP), Alstom Auxiliary Components, Extended Stay America Inc., Polymer Group Inc. and Creative Circle LLC disclosed talk with launch, and ConvergeOne Holdings Corp. released guidance on its upcoming deal.

In addition, Energy Future Intermediate Co. LLC (EFIH Finance Inc.) set timing on its debtor-in-possession term loan, and Swift Transportation Co., Gray Television Inc. and Schrader International Inc. emerged with new deal plans.

Post starts trading

Post Holdings' $885 million seven-year senior secured term loan broke for trading on Wednesday, with the debt quoted at par bid, par ¾ offered by one trader early on and then a second trader saw it move up to par 7/8 bid, 101¼ offered.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

During syndication, the term loan was increased from a revised amount of $735 million and an initial size of $635 million, pricing was decreased from Libor plus 325 bps and the Libor floor was cut from 1%.

Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets and Nomura are leading the deal.

Senior secured leverage is 1.5 times and net total leverage is 6.4 times.

Post funding acquisitions

Proceeds from Post's term loan will be used to help finance the $2.45 billion acquisition of Michael Foods from GS Capital Partners, Thomas H. Lee Partners and other owners, and amounts raised from the second upsizing will be used to pre-fund the acquisition of PowerBar and for general corporate purposes.

Other funds for the Michael Foods purchase and for $260 million of general corporate purposes will come from a $630 million senior notes offering, a $250 million equity notes offering, a $262.4 million common stock offering and $801.7 million of cash on hand.

Closing is expected this quarter, subject to conditions, including the expiration of waiting periods required under antitrust laws.

Post is a St. Louis-based consumer packaged goods holding company. Michael Foods is a Minnetonka, Minn.-based producer and distributor of food products to the foodservice, retail and food-ingredient markets.

MSC tops OIDs

MSC Software's credit facility emerged in the secondary too, with the $305 million six-year first-lien term loan (B1/B) quoted at 99½ bid, par ½ offered and the $120 million seven-year second-lien term loan (Caa1/CCC) quoted at 99½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at a discount of 99, after firming during syndication at the high end of the 99 to 99½ talk. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

The company's $435 million credit facility also includes a $10 million revolver (B1/B).

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

MSC is a Newport Beach, Calif.-based software company that focuses on multidiscipline simulation.

Printpack hits secondary

Printpack's credit facility also began trading, with the $225 million six-year first-lien term loan B quoted at 99¼ bid, par offered and the $75 million seven-year second-lien term loan quoted at 99 bid, 99¾ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is hard call protection of 102 in year one and 101 in year two.

The second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor and was issued at a discount of 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was downsized from $350 million, the spread was increased from talk of Libor plus 375 bps to 400 bps, the discount widened from 991/2, the call protection was changed from a 101 soft call for six months, the maturity was shortened from seven years and a total leverage test was added to the initially covenant-light tranche. Also, the second-lien loan was added to the capital structure.

Printpack getting revolver

Along with the term loans, Printpack's $480 million credit facility includes a $180 million five-year asset-based revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the term loan, and Wells Fargo and Bank of America are leading the revolver.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Printpack is an Atlanta-based converter of flexible and specialty rigid packaging.

Arizona Chem price talk

Moving to the primary, Arizona Chemical held its bank meeting on Wednesday, and with the event, price talk on its first- and second-lien term loans was disclosed, according to a market source.

The $675 million seven-year covenant-light first-lien term loan (BB-) is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, and the $205 million eight-year covenant-light second-lien term loan (B-) is talked at Libor plus 675 bps to 700 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company's $940 million credit facility also includes a $60 million five-year revolver (BB-).

Commitments are due on June 9, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Arizona Chemical is a Jacksonville, Fla.-based biorefiner of pine chemicals.

Ryman reveals guidance

Ryman Hospitality came out with talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99 to 99½ on its $400 million covenant-light term loan B (Ba3/BB) due January 2021 that launched with a morning meeting, according to a market source.

As previously reported, the loan has 101 soft call protection for six months.

Commitments are due at noon ET on June 6, the source continued.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and U.S. Bank are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Ryman is a Nashville, Tenn.-based real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.

Alstom Auxiliary launches

Alstom Auxiliary Components launched with a bank meeting its €630 million senior secured credit facility that consists of a €40 million five-year multicurrency revolver (B2), a €160 million five-year multicurrency letter-of-credit facility (B2), a €310 million equivalent dollar and euro seven-year covenant-light first-lien term loan B (B2) and a €120 million dollar-equivalent eight-year covenant-light second-lien term loan (Caa2).

With the event, talk on the first-lien term loan surfaced at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan came out at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on June 6.

Alstom Auxiliary lead banks

Citigroup Global Markets Inc., Barclays, ING Financial Markets LLC, RBC Capital Markets and Societe Generale are the leads on Alstom Auxiliary Components' credit facility that will be used to help fund its buyout by Triton from Alstom for about €730 million.

The transaction is expected to close before the end of the first half of fiscal year 2014/2015.

Alstom Auxiliary Components is a Mannheim, Germany-based company active in air preheaters and gas-gas heaters for thermal power plants, heat transfer products for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications.

Extended Stay holds meeting

Extended Stay America was another company to hold a bank meeting and announce talk, with its $375 million senior secured term loan (B+) presented with guidance of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan is non-callable for one year, then has soft call protection of 102 for six months and 101 for six months, the source remarked.

Commitments are due on June 10.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance $365 million of mezzanine debt.

Extended Stay, a Charlotte, N.C.-based owner and operator of company-branded hotels, said in a recent news release that closing on the loan is subject to a number of factors, including market interest and other conditions.

Polymer details emerge

Polymer Group Inc. held its call in the afternoon, presenting to lenders a fungible $355 million senior secured incremental covenant-light term loan (B2/B-) due Dec. 19, 2019 with talk of Libor plus 425 bps with a 25 bps step-down when senior secured net leverage is below 3.5 times, a 1% Libor floor, an original issue discount in the 99¾ area and 101 soft call protection for six months, a source said.

Included in the term loan is a $45 million is a delayed-draw tranche that is available until Dec. 31 and has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Commitments are due at noon ET on June 4 and closing is targeted for June 11, the source added.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets and HSBC Securities (USA) Inc. are leading the deal.

Polymer funding acquisition

Proceeds from Polymer Group's term loan will be used with an expected $200 million senior unsecured notes offering to finance the acquisition of 71.25% of the outstanding capital stock of Companhia Providência Indústria e Comércio.

Completion of the acquisition is expected in the third or fourth quarter, subject to customary conditions, including approval by antitrust authorities.

Polymer Group is a Charlotte, N.C.-based producer of engineered materials with a focus on nonwoven products. Companhia is a Brazilian manufacturer of nonwovens used in hygiene, healthcare and industrial applications.

Creative Circle sets talk

Creative Circle held its bank meeting in the morning, launching its $150 million first-lien term loan (B1/B+) with talk of Libor plus 450 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, and its $35 million second-lien term loan (Caa1/CCC+) with talk of Libor plus 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, a source remarked.

Commitments for the $200 million credit facility, which also includes a $15 million revolver (B1/B+), are due on June 11.

Societe Generale is leading the deal that will be used to refinance existing debt and fund a dividend.

Senior leverage is 3.7 times and total leverage is 4.5 times, down a tick from the previously anticipated 4.6 times due to better than expected performance, the source added.

Creative Circle is a Los Angeles-based provider of specialized freelance and permanent staffing for advertising, creative and digital/IT marketing talent.

ConvergeOne floats pricing

ConvergeOne disclosed price talk on its first- and second-lien term loans in preparation for its upcoming bank meeting at 1:30 p.m. ET in New York on Thursday, according to a market source.

The $190 million six-year first-lien term loan is talked at Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, and the $80 million seven-year second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 99, the source said.

Previously it was revealed that the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments for the company's $295 million credit facility, which also includes a $25 million revolver, are due on June 12.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to help fund Clearlake Capital Group LP's buyout of ConvergeOne, an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction and managed services.

Energy Future timing surfaces

Energy Future revealed timing on its $1,325,000,000 24-month superpriority first-lien debtor-in-possession term loan, with the deal slated to launch with a call at 11 a.m. ET on Thursday, a source remarked.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Union Bank are leading the loan.

Proceeds will be used to fund Chapter 11 expenses, to refinance existing first-lien notes, for adequate protection payments, working capital and general corporate purposes, and to comply with any legal and/or regulatory requirements.

Energy Future is a Dallas-based power generation company and utility operator.

Swift on deck

Swift Transportation emerged with plans to hold a call at 11 a.m. ET on Thursday to launch a $1.35 billion senior secured credit facility, according to a market source.

The facility consists of a $450 million revolver, a $450 million delayed-draw term loan A and a $450 million term loan B.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing senior secured credit facility and funds from the delayed-draw loan will be used to redeem 10% senior secured second-lien notes on or before Dec. 31.

Closing is expected on June 9.

Swift is a Phoenix-based transportation services company and truckload carrier.

Gray Television readies deal

Gray Television set a conference call for 3 p.m. ET on Thursday to launch a $550 million senior secured credit facility, according to a market source.

The facility consists of a $50 million revolver, and a $500 million term loan with expected pricing in the 4% area and 101 soft call protection for six months, the source said.

Wells Fargo Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to refinance existing debt and complete pending acquisitions.

Closing is expected on or before June 30.

Gray Television is an Atlanta-based owner and operator of television stations and digital assets.

Schrader plans incremental

Schrader International scheduled a call for 10 a.m. ET on Thursday to launch a fungible $80 million incremental first-lien term loan, according to a market source.

The existing roughly $256.2 million first-lien term loan due April 27, 2018 is priced at Libor plus 400 bps with a 1% Libor floor.

Barclays is leading the deal that will be used to refinance the company's existing $75 million second-lien term loan.

Schrader is a manufacturer of tire pressure monitoring systems, valve products and tire hardware and related accessories for both original equipment manufacturers and aftermarket customers.

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