Sabre Industries, Nord Anglia Education break; Hanson Building, Axiall changes disclosed

By Sara Rosenberg

New York, Feb. 26 – Sabre Industries Inc.’s credit facility freed up for trading Thursday with its term loan quoted above its original issue discount, and Nord Anglia Education Inc.’s add-on term loan hit the secondary as well.

Over in the primary market, Hanson Building Products raised pricing on its first- and second-lien term loans, widened original issue discounts on the tranches and sweetened the call protection on the second-lien debt, Axiall Corp. trimmed the spread on its term loan, and Tank Holding Corp. released price talk with launch.

Sabre tops OID

Sabre Industries’ credit facility broke for trading on Thursday with the $255 million seven-year covenant-light term loan quoted at par bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 475 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk of Libor plus 500 bps to 525 bps.

The company’s $320 million credit facility (B+) also includes a $65 million revolver.

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.

Nord Anglia frees up

Nord Anglia Education’s fungible$150 million add-on term loan began trading too, with levels quoted at 99½ bid, par ¼ offered, according to a trader.

Pricing on the add-on loan is Libor plus 350 bps with a 1% Libor floor, which matches existing term loan pricing, and it was sold at an original issue discount of 99.

Recently, the add-on term loan was upsized from $125 million and the discount tightened from 98¾.

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of four schools in Vietnam.

Nord Anglia Education is a Hong Kong-based operator of schools.

Hanson reworks deal

Moving to the primary, Hanson Building Products lifted the spread on its $595 million seven-year first-lien covenant-light term loan (B1/B+) to Libor plus 550 bps from Libor plus 525 bps and moved the original issue discount to 97 from 99, while keeping the 1% Libor floor and 101 soft call protection for one year intact, according to a market source.

As for the $300 million eight-year second-lien covenant-light term loan (Caa1/CCC+), pricing was increased to Libor plus 950 bps from Libor plus 900 bps, the discount widened to 95 from 98, and the call protection was changed to non-callable for one year, then at 103 in year two and 101 in year three, from 103 in year one, 102 in year two and 101 in year three, the source remarked. This debt still has a 1% Libor floor.

The company’s $1,045,000,000 credit facility also includes a $150 million ABL revolver.

Recommitments are due at 5 p.m. ET on Friday, the source added.

Hanson lead banks

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading Hanson Building Products’ new credit facility.

Proceeds will be used to help fund the buyout of the company by Lone Star Funds from HeidelbergCement for $1.4 billion. Of the total purchase price, up to $100 million will be payable in 2016, depending on the performance of the business in 2015.

Closing is expected this quarter, subject to the satisfaction of customary conditions.

Hanson Building Products is a manufacturer of concrete and clay building products.

Axiall flexes lower

Axiall lowered pricing on its $250 million senior secured term loan B (Ba1/BBB-) due in 2022 to Libor plus 325 bps from Libor plus 350 bps, a market source said, adding that the 0.75% Libor floor, original issue discount of 99½ and 101 soft call protection for six months were unchanged.

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

Wells Fargo Securities LLC and RBC Capital Markets are leading the debt that will be used to refinance an existing term loan due in 2017 and for general corporate purposes.

Closing is expected this quarter, subject to market conditions, as well as the negotiation and execution of definitive documents and the satisfaction of customary conditions.

Axiall is an Atlanta-based chemicals and building products company.

Tank sets guidance

In more primary happenings, Tank Holding held its bank meeting on Thursday, launching its $50 million six-year revolver and a $440 million seven-year covenant-light term loan B with talk of Libor plus 400 bps to 425 bps and an original issue discount of 99, according to a market source.

The term loan B is also talked with a 1% Libor floor and 101 soft call protection for six months, while the revolver has no floor, the source said.

Commitments for the $490 million senior secured credit facility (B) are due on March 11.

GE Capital Markets and RBC Capital Markets are leading the deal that will be used to refinance existing debt, including the pay down of $25 million of senior notes, and fund a distribution to shareholders.

Pro forma for the transaction, senior leverage will be 4.4 times and total leverage will be 6.2 times.

Tank Holding is a St. Bonifacius, Minn. and Lincoln, Neb.-based manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers used in above-ground, below-ground and portable applications.

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