Installed Building Products frees to trade; SeaStar Solutions dips with acquisition news

By Sara Rosenberg

New York, Nov. 22 – Installed Building Products Inc.’s term loan B emerged in the secondary market on Wednesday, and SeaStar Solutions’ term loan was softer after the company revealed that it is being acquired by Dometic Group.

Also, OEConnection LLC allocated its credit facilities in line with initial price talk.

Installed Building breaks

Installed Building Products’ $299 million covenant-light term loan B (B1/BB) due April 2024 began trading on Wednesday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 250 basis points with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Gross leverage is 2.4 times, and net leverage is 2 times.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

SeaStar softens

Also in the secondary market, SeaStar’s term loan dropped to par bid, par ½ offered from par ¼ bid, par ¾ offered after the company announced that it is being purchased by Dometic Group from American Securities LLC for $875 million, a trader remarked.

Dometic plans on using committed bank facilities and cash to fund the transaction.

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

SeaStar is a Litchfield, Ill.-based provider of vessel control, fuel systems and system integration to the marine industry. Dometic is a Solna, Sweden-based provider of products for use in recreational vehicles, trucks and premium cars, pleasure and workboats and for a variety of other uses.

OEConnection allocates

In other news, OEConnection allocated its $435 million of senior credit facilities in the morning, according to a market source.

The facilities consist of a $35 million six-year revolver (B2/B-), a $300 million seven-year covenant-light term loan (B2/B-) and a $100 million eight-year second-lien term loan (Caa2/CCC).

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

Antares Capital and CapitalOne led the deal that is being used for a recapitalization.

Closing was scheduled for Wednesday.

OEConnection, a Providence Equity Partners LLC portfolio company, is a Richfield, Ohio-based provider of SaaS solutions that help drive genuine OE parts sales and services across the automotive system.

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