SIG Combibloc, IPC break; Nellson Nutraceutical, Select Staffing reveal deal revisions

By Sara Rosenberg

New York, Feb. 3 – Deals from SIG Combibloc Group AG and IPC Corp. surfaced in the secondary market on Tuesday, and Performance Food Group saw the bid on its second-lien term loan weaken with add-on debt news.

Over in the primary market, Nellson Nutraceutical LLC lifted the spread on its first-lien term loan, Select Staffing (Koosharem LLC) tightened the original issue discount on its tack-on term loan, chatter surfaced that Dollar Tree Inc. may upsize its term loan A, and Sabre Industries Inc. emerged with new deal plans.

SIG Combibloc starts trading

SIG Combibloc’s credit facility freed up for trading on Tuesday with the $1,225,000,000 seven-year covenant-light term loan quoted at 99¾ bid, par ½ offered, according to a trader.

Pricing on the U.S. term loan, as well as on a €1.05 billion seven-year covenant-light term loan, is Libor/Euribor plus 425 basis points with a 1% floor and the debt was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

Recently, the total amount of term loan debt was upsized to €2,134,000,000 equivalent from €1,965,000,000 equivalent, pricing was lowered from talk of Libor/Euribor plus 450 bps to 475 bps, the discount tightened from 99, the call protection was extended from six months, and the ticking fee was changed to the full spread and floor at day 31 from half the spread from days 31 to 60 and the full spread thereafter.

The company’s €2,434,000,000-equivalent credit facility (B1/B+) also includes a €300 million six-year multicurrency revolver.

SIG Combibloc leads

Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co., Nomura Securities Co. Ltd., RBC Capital Markets LLC, Credit Agricole, Mizuho, RBS Securities Inc., UniCredit and Rabobank are leading SIG Combibloc’s credit facility.

Proceeds from the credit facility, a €675 million-equivalent notes offering and equity will be used to finance the buyout of the company by Onex Corp. for up to €3.75 billion, of which €3,575,000,000 will be paid at the closing and an additional up to €175 million will be payable based on the financial performance of SIG Combibloc in 2015 and 2016.

The bond offering was downsized the other day from €700 million with the term loan upsizing.

Net senior secured leverage is 4.8 times, and net total leverage is 6.3 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

IPC hits secondary

IPC’s credit facility also broke for trading, with the $595 million 6½-year first-lien term loan (B) seen at 97¼ bid, 98¼ offered, a trader said.

The first-lien term loan is priced at Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

The company’s $925 million credit facility also includes a $25 million five-year revolver (B1/B) and a $305 million seven-year second-lien covenant-light term loan (B-).

Pricing on the second-lien term loan is Libor plus 950 bps with a 1% Libor floor and it was issued at a discount of 95½. This tranche is non-callable for one year, then at 103 in year two and 101 in year three.

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

IPC being acquired

Proceeds from IPC’s credit facility will be used to help fund its buyout by Centerbridge Partners LP from Silver Lake Partners for about $1.2 billion.

During syndication, the first-lien term loan was upsized from $555 million, pricing was flexed from Libor plus 475 bps, the discount was changed from 99, the call protection was extended from six months, the maturity was shortened from seven years and a net first-lien maintenance covenant was added to the originally covenant-light tranche.

Meanwhile, the second-lien term loan, during syndication, was downsized from $345 million, pricing was raised from Libor plus 850 bps, the discount widened from 98½, the call protection was modified from 102 in year one and 101 in year two, and the maturity was shortened from eight years.

Also, during syndication, the company eliminated the 12-month MFN sunset provision from both term loans, increased the excess cash flow sweep to 75% with step-down from 50% with step-downs and adjusted the unlimited amount provision under the incremental allowance.

IPC is a Jersey City, N.J.-based provider of mission-critical network services and trading communication technology to the financial markets community.

Performance Food dips

Also in trading, Performance Food Group’s second-lien term loan was bid lower after news surfaced that the company is planning a $550 million add-on term loan to help fund its purchase of 11 distribution centers from US Foods, according to a trader.

The second-lien term loan was quoted at 98 bid, 99 offered, down on the bid side from 98¼ bid, 99 offered, the trader said.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Barclays, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, BMO Capital Markets and Macquarie Capital are leading the add-on term loan.

Timing on the launch of the loan is not yet available, a source remarked.

The company also expects to upsize its $1.4 billion ABL credit facility in connection with the acquisition, but the amount of the upsize is still to be determined.

Performance Food is a Richmond, Va.-based foodservice distributor.

Nellson Nutraceutical flexes

Moving to the primary, Nellson Nutraceutical increased pricing on its $240 million seven-year first-lien term loan (B) to Libor plus 500 bps from talk in the Libor plus 450 bps area, while leaving the 1% Libor floor and original issue discount of 99 unchanged, according to a market source.

The company’s $368 million senior credit facility also includes a $55 million five-year revolver (B) and a $73 million second-lien term loan (CCC+) that is being privately placed.

Allocations are expected later this week, the source added.

GE Capital Markets, BMO Capital Markets, RBC Capital Markets and Madison Capital are leading the deal that will be used to fund the tack-on acquisition of Le Groupe Multibar Inc. and refinance existing debt.

Nellson Nutraceutical, a Kohlberg & Co. LLC portfolio company, is an Irwindale, Calif.-based nutritional diet protein energy diabetic medical bar and powder manufacturer. Le Groupe Multibar is a Montreal-based manufacturer of nutritional and snack bars.

Select Staffing tweaks OID

Select Staffing modified the original issue discount on its $255 million tack-on senior secured term loan due May 2020 (B3/B-) to 99 from 98½ and made the debt fungible with the existing term loan, a market source said.

Pricing on the tack-on loan is still Libor plus 650 bps with a 1% Libor floor and there is still call protection of 102 through May 2015 and a 101 soft call for six months thereafter, which all matches the existing term loan.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading the deal that will help fund the acquisition of EmployBridge Inc. from Morgan Stanley Global Private Equity and Constitution Capital.

Along with the tack-on loan, the company is seeking an amendment to its existing $370 million term loan due May 2020 for which the consent fee is 25 bps.

Closing is expected this month.

Select Staffing is a provider of workforce management services. EmployBridge is a provider of specialty staffing services. The combined company will be based in Atlanta.

Dollar Tree mulls upsizing

Market talk is that Dollar Tree is considering increasing the size of its five-year term loan A to more than $1 billion from $500 million, according to market sources.

The company’s $6.95 billion credit facility (Ba1/BB+), as launched, also includes a $1.25 billion five-year revolver and a $5.2 billion seven-year term loan B.

Price talk on the term loan B is Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and there is 101 soft call protection for six months.

Talk on the term loan A and revolver is Libor plus 225 bps.

Commitments are due on Thursday.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC and U.S. Bank NA are the leads on the deal.

Dollar Tree funding acquisition

Proceeds from Dollar Tree’s credit facility will be used to help fund the acquisition of Family Dollar Stores Inc. in a cash and stock deal valued at $8.5 billion. Family Dollar shareholders will receive $74.50 per share, comprised of $59.60 in cash and $14.90 in Dollar Tree stock, subject to a collar.

Other funds for the transaction are expected to come from bonds, equity and cash on hand.

The financing is expected to be completed in February.

Family Dollar stockholders already approved the transaction but the acquisition remains subject to approval by the Federal Trade Commission.

Closing of the Family Dollar acquisition could occur as soon as March.

Dollar Tree is a Chesapeake, Va.-based discount store operator. Family Dollar is a Matthews, N.C.-based chain of discount stores.

Sabre Industries on deck

Sabre Industries set a bank meeting for 10 a.m. ET on Wednesday to launch a $320 million credit facility, according to a market source.

The facility consists of a $65 million revolver and a $255 million seven-year covenant-light term loan, the source said.

BNP Paribas Securities Corp., Citizens Financial Group and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund an acquisition.

Sabre is an Alvarado, Texas-based turnkey provider of engineered structures and related services for the electric transmission & distribution and wireless communications end-markets.

Angus closes

In other news, the $1,215,000,000 buyout of Angus Chemical Co. by Golden Gate Capital from the Dow Chemical Co. has been completed, a news release said.

To help fund the transaction, Angus got a new $570 million credit facility (B1/B+) that includes a $65 million revolver, a $335 million U.S. dollar term loan and a $170 million euro-equivalent term loan.

Pricing on the term loans is Libor/Euribor plus 425 bps with a 1% floor and the debt was sold at an original issue discount of 99½. The loans have 101 soft call protection for one year.

During syndication, the U.S. loan was downsized from $355 million, the euro loan was upsized from $150 million, and pricing on both tranches was tightened from Libor/Euribor plus 450 bps with a discount of 99.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. led the deal.

Other funds for the buyout came from $225 million of senior notes.

Angus is a Buffalo Grove, Ill.-based manufacturer and distributor of nitroalkanes and their derivatives.

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