Solenis, Novitex, Jacobs Douwe, TerraForm, GST AutoLeather, Intelligrated free to trade

By Sara Rosenberg

New York, July 2 – Solenis International LP (Ashland Water Technologies), Novitex Acquisition LLC (Pitney Bowes Management Services), Jacobs Douwe Egberts, TerraForm Power Inc., GST AutoLeather Inc. and Intelligrated all freed up for trading on Wednesday.

Switching to the primary, AmSurg Corp. reduced the spread on its term loan B and tightened the original issue discount, and Iglo Foods Midco Ltd. modified price talk and revealed the offer price on its term B debt.

In addition, Tribune Publishing Co. widened pricing and the original issue discount on its term loan and extended the call protection, and TriNet HR Corp. increased the size of its term loan B while decreasing the spread and downsizing its term loan A.

Also, Drillships Ocean Ventures Inc. (Ocean Rig), Citgo Petroleum Corp., iParadigms Holdings LLC, Ipreo Holdings LLC, Southcross Holdings Borrower LP, Southcross Energy Partners LP, Surgery Center Holdings Inc. (Surgery Partners), MD America Energy, Wausau Paper Corp. and Miller Heiman joined next week’s calendar.

Solenis hits secondary

Solenis’ credit facility broke for trading on Wednesday, with the $630 million seven-year first-lien covenant-light term loan (B2/B) quoted at par bid, par ½ offered and the $470 million eight-year second-lien covenant-light term loan (Caa1/B-) quoted at par bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 675 bps with a 1% Libor floor and was issued at 99½. This debt has call protection of 102 in year one and 101 in year two.

The company’s $1,615,000,000 credit facility also includes a $200 million revolver (B2/B), and a $315 million seven-year euro first-lien covenant-light term loan (B2/B) priced at Euribor plus 350 bps with a 1% floor and sold at 99½. The euro term loan has 101 soft call protection for six months.

Proceeds from the credit facility and up to $400 million of equity will be used to help fund the buyout of the company for roughly $1.8 billion by Clayton, Dubilier & Rice from Ashland Inc.

Solenis lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Nomura Securities International Inc., RBC Capital Markets, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading Solenis’ credit facility, with Credit Suisse the left lead on the first-lien debt and Bank of America the left lead on the second-lien debt.

Earlier this week, pricing on the U.S. first-lien term loan was reduced from talk of Libor plus 350 bps to 375 bps, the spread on the euro first-lien term loan firmed at the low end of the Libor/Euribor plus 350 bps to 375 bps talk, pricing on the second-lien loan was trimmed from Libor plus 700 bps and the discount on all of the term loans was tightened from 99.

Closing is expected by Sept. 30, subject to regulatory approvals, standard conditions and completion of required employee information and consultation processes.

Solenis is a supplier of specialty chemicals for process, functional and water treatment applications.

Novitex tops OIDs

Another deal to free up was Novitex, with its $305 million six-year first-lien term loan seen at 99 bid, par offered and its $140 million seven-year second-lien term loan seen at 99½ bid, par ½ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 625 bps with a 1.25% Libor floor and it was sold at 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 1,050 bps with a 1.25% Libor floor and was sold at 99. This tranche has call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was downsized from $355 million, pricing was raised from talk of Libor plus 575 bps to 600 bps, the discount was set at the wide end of the 99 to 99½ talk and the call protection was extended from six months, and the second-lien loan was upsized from $100 million.

Credit Suisse Securities (USA) LLC and UBS AG are leading the $445 million of term loans that will be used by the Stamford, Conn.-based provider of mail and print outsourcing services to refinance existing bank debt and fund a dividend.

Jacobs Douwe frees up

Jacobs Douwe Egberts’ credit facility also began trading, with the €800 million U.S. equivalent seven-year term loan B quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the U.S. term loan B, as well as on a €2.4 billion euro seven-year term loan B, is Libor/Euribor plus 350 basis points with a 0.75% floor and the debt was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, the U.S. term loan B was downsized from €1.2 billion, the euro term loan B was downsized from €3 billion, pricing on both tranche was lifted from Libor/Euribor plus 325 bps, the discount widened from talk of 98½ to 99 and the call protection was extended from six months.

The company’s €7.6 billion credit facility (BB) also includes a €500 million five-year revolver, a €1 billion delayed-draw term loan A, which was added when the term loan B debt was reduced, and a €2.9 billion five-year term loan A, all priced at Euribor plus 300 bps.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal that will help fund the merger of Mondelez International Inc.’s coffee operations and D.E Master Blenders 1753 BV to create Jacobs Douwe, a Netherlands-based coffee company.

TerraForm levels surface

TerraForm Power’s credit facility broke, with the $300 million five-year term loan quoted at par bid, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 99½. There is 101 soft call protection for six months.

The other day, pricing on the loan was cut from Libor plus 450 bps and the discount was modified from 99.

The $425 million senior secured deal (Ba3/BB) also includes a $125 million three-year revolver.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance a portion of the company’s bridge loan, and is being done in connection with an initial public offering of class A common stock.

Beltsville, Md.-based TerraForm Power is an indirect subsidiary of SunEdison and will own and operate contracted clean power generation assets acquired from SunEdison and unaffiliated third parties.

GST AutoLeather breaks

GST AutoLeather’s credit facility hit the secondary too, with the $150 million six-year term loan B quoted at 99 bid, par offered, a trader remarked.

Pricing on the term loan B is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Recently, pricing on the term loan was increased from talk of Libor plus 475 bps to 500 bps and the call protection was extended from six months.

The company’s $180 million senior secured credit facility also includes a $30 million five-year revolver.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

GST is a Southfield, Mich.-based automotive leather manufacturer.

Intelligrated starts trading

Intelligrated’s $65 million add-on first-lien term loan (B2) freed up as well, with levels seen at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the add-on is Libor plus 350 bps, after firming at the tight end of the Libor plus 350 bps to 375 bps talk. There is 1% Libor floor and the debt was sold at an original issue discount of 99½.

With the add-on, the company is repricing its existing first-lien term loan to Libor plus 350 bps with a 1% Libor floor from Libor plus 325 bps with a 1.25% Libor floor.

RBC Capital Markets is leading the add-on that will be used with cash on hand to repay the company’s existing second-lien term loan at the current 101 call protection level.

Intelligrated is a Mason, Ohio-based provider of automated material handling services and products.

AmSurg flexes lower

Moving to the primary, AmSurg cut pricing on its $870 million seven-year covenant-light term loan B to Libor plus 300 bps from Libor plus 325 bps and moved the original issue discount to 99¾ from 99½, according to a market source.

The B loan still has a 1% Libor floor and 101 soft call protection for six months.

On Tuesday, the term loan B was downsized from $1.09 billion in response to the company’s senior unsecured notes offering being upsized to $1.1 billion from $880 million.

The company’s $1.17 billion senior secured credit facility (BB-) also includes $300 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal.

AmSurg buying Sheridan

Proceeds from AmSurg’s credit facility, cash on hand, common stock and a mandatory convertibles will fund the company’s $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.

Closing is expected in mid-July, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other health-care facilities.

Iglo updates talk

Iglo Foods changed price talk on its €620 million six-year covenant-light term loan B to Euribor plus 425 bps to 450 bps from just Euribor plus 450 bps and on its GBP 400 million six-year covenant-light term loan B to Libor plus 475 bps to 500 bps from just Libor plus 500 bps, and disclosed that both tranches are being offered at par, a source said.

The term loans have 101 soft call protection for six months.

Commitments were due at 5pm UK time on Wednesday, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities and Nomura are leading the deal that will be used to refinance existing term loan debt.

Iglo is a Feltham, England-based frozen food company.

Tribune Publishing revised

Tribune Publishing lifteded pricing on its $350 million seven-year senior secured covenant-light term loan (B1/B+) to Libor plus 475 bps from talk of Libor plus 400 bps to 425 bps, modified original issue discount talk to 99 to 99¼ from 99½ and extended the 101 soft call protection to one year from six months, according to a market source.

Also, amortization on the term loan was beefed up to 5% from 1% per annum, the incremental allowance was cut to $100 million from $150 million and the MFN was set for life, the source said.

The Chicago-based newspaper publishing and local news and information gathering company’s $490 million credit facility also includes a $140 million five-year asset-based revolver (BB).

J.P. Morgan Securities LLC is the left lead on the deal that is being done in connection with the separation of Tribune Publishing from Tribune Co. and will be used for working capital and to fund a dividend to Tribune of up to $275 million.

Closing is expected in the third quarter.

TriNet reworks deal

TriNet lifted its three-year term loan B to $200 million from $175 million and reduced pricing to Libor plus 275 bps from Libor plus 300 bps, according to a market source.

As before, the term loan B has no Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

With the term loan B upsizing, the five-year term loan A was reduced to the $350 million to $375 million area from $400 million.

The term loan A and a $75 million five-year revolver are still priced at Libor plus 275 bps.

J.P. Morgan Securities LLC is leading the deal (B1) that will be used to refinance existing debt.

TriNet is a San Leandro, Calif.-based cloud-based provider of on-demand HR services.

Drillships joins calendar

Also on the new-deal front, Drillships Ocean Ventures plans to hold a bank meeting at 3 p.m. ET in New York on Tuesday to launch an $800 million senior secured term loan B, a market source said.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with an expected notes offering to refinance existing secured debt.

Drillships is a subsidiary of Ocean Rig, a Nicosia, Cyprus-based international offshore drilling contractor.

Citgo coming soon

Citgo Petroleum is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $650 million senior secured term loan B, according to a market source.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt and fund a distribution to parent company Petróleos de Venezuela S.A.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

iParadigms readies deal

iParadigms set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $356 million credit facility, according to a market source.

The facility consists of a $16 million revolver, a $225 million seven-year first-lien covenant-light term loan and a $115 million eight-year second-lien covenant-light term loan, the source said.

Commitments are due at 5 p.m. ET on July 22, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the $752 million buyout of the company by Insight Venture Partners and GI.

iParadigms is an Oakland, Calif.-based provider of anti-plagiarism and online grading software.

Ipreo details revealed

Ipreo scheduled a bank meeting for Monday to launch its buyout financing, which was revealed to include a $365 million senior credit facility (B1/B+), according to a market source.

The facility consists of a $45 million revolver and a $320 million term loan, the source said.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will help fund the purchase of the company by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP, although Kohlberg Kravis Roberts will retain a minority ownership stake in the business.

Ipreo is a New York-based provider of new issuance software services across the equity, fixed income, municipal and syndicated loan markets.

Southcross timing emerges

Southcross Holdings, a midstream services company, surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on July 10 to launch its credit facility, which is now known to be sized at $575 million credit facility, according to a market source.

The facility consists of a $50 million super priority revolver, and a $525 million seven-year first-lien term loan with a 1% Libor floor, the source said.

Commitments are due on July 24.

UBS AG and Barclays are leading the deal that will be used to repay debt at BlackBrush TexStar.

Southcross Energy LLC is combining with TexStar Midstream Services, and a newly formed company, Southcross Holdings LP, will own 100% of the general partner of Southcross and equity interests in Southcross as well as former TexStar assets. EIG Global Energy Partners, Charlesbank Capital Partners and Tailwater Capital will each indirectly own around one-third of Southcross Holdings.

Closing is expected in the third quarter, subject to customary conditions, including expiration of any required anti-trust filings under Hart-Scott-Rodino.

Southcross Energy on deck

At the July 10 Southcross Holdings bank meeting, Southcross Energy will launch a $570 million credit facility that is being led by Wells Fargo Securities LLC, UBS AG and Barclays, a source said.

The facility includes a $120 million five-year revolver and a $450 million seven-year term loan B, the source continued.

The company previously said that revolver pricing is expected to range from Libor plus 200 bps to 325 bps, and term loan B pricing is expected at Libor plus 500 bps, with a total interest rate of around 6%.

Proceeds will be used to help fund the acquisition of one-third of TexStar Midstream Services LP’s midstream assets (TexStar Rich Gas System) for about $450 million, comprised of $180 million in cash and 14.633 million newly-issued 7%payment-in-kind common units, and to provide additional funds for future growth capital projects and other partnership purposes.

Southcross Energy Partners is a Dallas-based master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. TexStar is a San Antonio-based midstream services company.

Surgery Center sets meeting

Surgery Center scheduled a bank meeting for 11 a.m. ET on July 9 to launch its previously announced $1.4 billion debt facility, according to a market source.

The facility includes a revolver, a first-lien term loan, a second-lien term loan and a holdco term loan, the source said.

Jefferies Finance LLC, KKR Capital and MCS Capital are leading the deal that will be used to fund the $792 million acquisition of Symbion Holdings Corp.

Closing is expected in the fourth quarter, subject to customary conditions and required regulatory approvals.

Surgery Center is a Chicago-based owner and operator Ambulatory Surgery Centers. Symbion is a Nashville, Tenn.-based owner and operator of short stay surgical facilities.

MD America second-lien

MD America Energy plans to hold a bank meeting on Tuesday to launch a $525 million five-year second-lien term loan, according to a market source.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

MD America is an upstream oil and gas company.

Wausau Paper plans loan

Wausau Paper will hold a call on Tuesday to launch a $175 million six-year term loan (B), a market source said.

Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used to refinance notes.

Wausau Paper is a Mosinee, Wis.-based paper company.

Miller Heiman add-on

Miller Heiman set a bank meeting for July 9 to launch a fungible $136 million add-on term loan priced at Libor plus 575 bps with a 1% Libor floor, in line with the existing term loan, a source remarked.

GE Capital Markets is leading the deal.

Proceeds will be used by the Denver-based provider of corporate sales training to support an acquisition.

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