Cooper-Standard sets Tuesday bank meeting; Morsco increases spread talk

By Paul A. Harris

Portland, Ore., Oct. 24 – In Monday’s leveraged loan market Cooper-Standard Holdings Inc. announced plans to launch a $340 million term loan at a bank meeting on Tuesday.

And Morsco Inc. increased spread talk on its $300 million covenant-light term loan.

Cooper Standard term B

Cooper-Standard plans to launch a $340 million seven-year term loan B at a bank meeting set for 12:30 p.m. ET on Tuesday, according to a market source.

Commitments are due Friday.

Deutsche Bank is the left bookrunner. BofA Merrill Lynch, JP Morgan, Goldman Sachs and Barclays are the joint bookrunners.

The Novi, Mich.-based supplier of systems and components for the automotive industry plans to use the proceeds, together with cash on hand, to repay its non-extended term loans outstanding under the amended and restated term loan facility.

Morsco hikes talk

Morsco increased spread talk on its $300 million seven-year senior secured covenant-light term loan (B) to Libor plus 700 basis points from Libor plus 600 bps, according to a market source.

The discount is also increased to two points from one point, now set at OID 99.

There are also covenant changes.

The 1% Libor floor and one-year 101 soft call protection are unchanged.

Commitments are due at 5 p.m. ET Tuesday.

Barclays, Citigroup Global Markets Inc., RBC Capital Markets and Jefferies Finance LLC are the bookrunners on the deal.

The ABL revolver size is decreased to $300 million from $350 million, capped at the greater of $315 million and the borrowing base which is not to exceed 3.0 times adjusted EBITDA.

Proceeds will be used to fund the acquisition of Fortiline Waterworks.

Advent International is the sponsor.

Morsco is a Fort Worth-based distributor of commercial and residential plumbing and HVAC products.

Idera prices two tranches

Idera, Inc. has priced $510 million of term loan debt consisting of first-lien and second-lien tranches, according to a market source.

The deal includes $360 million of Libor plus 550 bps seven-year first-lien term loan debt that priced at 99, with six months of soft call protection at 101.

In addition, the company priced $150 million of Libor plus 950 bps eight-year second-lien term loan debt at 98, with hard calls of 102 and 101.

The spreads of both tranches float atop 1% Libor floors.

UBS was the left lead.

The credit facility also includes a $25 million revolver.

The software company plans to use the proceeds to fund a dividend.

The sponsor is TA Associates.

Camping World investor call

Camping World Good Sam set a Wednesday lender call for its $645 million senior secured term loan B, according to a market source.

Goldman Sachs & Co. is the lead.

The Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories plans to use the proceeds to refinance debt.

ABB Optical sets launch

ABB Optical Group plans to launch a $48 million senior secured incremental first-lien term loan B on a lender call scheduled for 1 p.m. ET on Tuesday, according to a market source.

Morgan Stanley Senior Funding, Inc. is the arranger.

The Coral Springs, Fla. optical distributor plans to use the proceeds to finance an acquisition.

Safway talk

Safway Group Holding LLC talked its $160 million senior secured incremental first-lien term loan B (B3/B+) with a 475 bps spread to Libor atop a 1% Libor floor at OID 99 to 99.5, according to a market source.

The loan comes with 101 soft call protection until August 2017.

Commitments are due Oct. 31.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Proceeds will be used with an ABL draw to fund the acquisition of SafeWorks and pay related fees and expenses.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

BMI Healthcare term loan talk

BMI Healthcare talked its £285 million seven-year term loan B at 99, with a spread in the Libor plus 550-bps area, according to a market source.

The deal will not have a Libor floor.

Commitments are due Nov. 4.

Barclays and Goldman Sachs are the arrangers.

Proceeds will be used to refinance debt and fund a payment of up to £180 million to PropCo and to reduce rent expense.

London-based BMI is an independent health care provider in the United Kingdom.

Azelis launches two-part deal

Azelis Finance SA launched a two-part repricing of its senior secured term loan B due Dec. 17, 2022 (B2/B+) with price talk on Monday, according to a market source.

A $322,562,500 tranche is talked at Libor plus 400 bps to 425 bps atop a 1% Libor floor at par.

A €168,227,506 tranche is talked at Euribor plus 375 bps to 400 bps atop a 1% Libor floor at par.

Both tranches come with six months of soft call protection at 101 and annual amortization rates of 1%.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

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