ClubCorp frees to trade; Gardner Denver, Springer Science, Harbor Freight Tools tweak deals

By Sara Rosenberg

New York, July 23 - ClubCorp Club Operations Inc.'s credit facility broke for trading during Tuesday's market hours, with the term loan B quoted north of its issue price.

Over in the primary, Gardner Denver Inc. reduced pricing and original issue discount on its euro term loan, Springer Science + Business Media increased the size of both its U.S. and euro term loans, firmed spreads at the low end of talk, widened original issue discounts and added soft call protection, and Harbor Freight Tools USA Inc. trimmed pricing and discount on its deal.

Also, Keystone Automotive Operations Inc., Toys 'R' Us Property Co. I LLC, Fresenius SE & Co. KGaA, Van Wagner Communications LLC and Enven Energy Ventures LLC released talk with launch, and TIP Trailer Services revealed original issue discount talk and call protection on its term loans.

Furthermore, Bowie Resources LLC came out with timing on the launch of its credit facility, and Vantage Pipeline, Playa Funding and Quebecor Media Inc. joined the forward calendar.

ClubCorp starts trading

ClubCorp's credit facility hit the secondary market on Tuesday, with the $301 million seven-year term loan B quoted at par ¾ bid, 101¾ offered by one trader and at 101 bid, 101¾ offered by a second trader.

Pricing on the B loan is Libor plus 325 basis points with a 25 bps pricing step-down after an initial public offering. There is a 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par. Of the total B loan amount, about $290 million is existing debt and about $10 million is new debt.

During syndication, pricing on the term B was reduced from Libor plus 350 bps and the offer price was tightened from talk of 99½ to 993/4.

The company's $350 million credit facility also includes a $50 million revolver.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing bank debt.

ClubCorp, a Dallas-based owner and operator of golf courses, country clubs, private business and sports clubs, and resorts, expects to close on the credit facility on Wednesday.

Gardner Denver flexes

Moving to the primary, Gardner Denver trimmed pricing on its $525 million seven-year euro term loan to Euribor plus 375 basis points from initial talk of Euribor plus 425 bps to 450 bps and tightened the original issue discount to 99½ from 99, while keeping the 1% floor and 101 soft call protection for one year intact, according to a market source.

Recommitments for the euro loan were due at 3:00 p.m. UK time on Tuesday.

The company's $2,825,000,000 senior secured credit facility (B1/B) also includes a $400 million five-year revolver and a $1.9 billion seven-year U.S. term loan.

The U.S. term loan, which was revised earlier in the syndication process and saw books close on Monday, is priced at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 991/2, and has 101 soft call protection for one year.

Gardner lead banks

UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Corporate Bank Ltd., RBC Capital Markets, Macquarie Capital and HSBC Securities (USA) Inc. are the bookrunners and the joint lead arrangers on Gardner Denver's credit facility with KKR Capital Markets and Sumitomo Mitsui Banking.

Recently, the U.S. term loan was upsized from $1.8 billion as the company's bond deal was reduced to $575 million from $675 million, pricing was cut from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps to 425 bps, the discount was tightened from 99 and the 101 soft call protection was moved back to six months and then back to one year.

Proceeds will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co. LP for $76 per share. The transaction is valued at about $3.9 billion, including the assumption of debt.

Closing is expected on July 30, the source added.

Gardner Denver is a Wayne, Pa.-based manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems.

Springer reworks deal

Springer Science raised its U.S. seven-year first-lien covenant-light term loan to $1,591,000,000 from $1,553,000,000 and set pricing at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, according to a market source.

Meanwhile, the euro seven-year first-lien covenant-light term loan was increased to €615 million from €565 million and pricing came at Euribor plus 425 bps, the low end of the Euribor plus 425 bps to 450 bps talk.

Additionally, both term loans had their discounts moved to 96 from 99, which is what the funds from the upsizings will be used for, and 101 soft call protection for one year added, while the 1% floors were left unchanged, the source remarked.

Recommitments were due at 5 p.m. ET on Tuesday for the company's credit facility (B2/B) that also includes a €150 million revolver, the source added.

Springer being acquired

Proceeds from Springer's credit facility and €640 million of subordinated debt that was privately placed with Goldman Sachs Mezzanine fund will fund its buyout by BC Partners from EQT Partners and the Government of Singapore Investment Corp. for around €3.3 billion.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Nomura and UBS Securities LLC are the lead banks on the deal.

Springer is a Berlin-based STM publisher that provides scientific, professional and academic media content.

Harbor Freight cuts pricing

Harbor Freight Tools lowered the coupon on its $1 billion six-year senior secured covenant-light term loan (B1/B+) to Libor plus 375 bps from Libor plus 400 bps and tightened the original issue discount to 99¾ from 99, according to a market source.

As before, the loan has a 1% Libor floor and 101 repricing protection for one year.

Commitments are due at noon ET on Wednesday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a dividend to shareholders.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

Keystone launches

Also in the primary, Keystone Automotive hosted its bank meeting on Tuesday, and with the event, price talk on the first-and second-lien term loans was announced, according to a market source.

The $235 million six-year first-lien term loan (B3/B) is talked at Libor plus 475 bps with a 1.25% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, the source said.

And, the $100 million seven-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 850 bps with a 1.25% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $360 million credit facility also includes a $25 million ABL revolver that is not being syndicated.

UBS Securities LLC, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to repay existing debt and fund a dividend to shareholders.

Keystone is an Exeter, Pa.-based distributor and marketer of aftermarket automotive equipment and accessories.

Toys 'R' Us outlines terms

Toys 'R' Us set talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two on its $985 million six-year covenant-light unsecured term loan (B3/B+/BB-) that was launched with a bank meeting in the morning, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal.

Proceeds will be used by the Wayne, N.J.-based toy retailer to refinance 10¾% notes.

Fresenius reveals guidance

Fresenius launched its $500 million six-year term loan with talk of Libor plus 225 bps with no Libor floor and an original issue discount of 99 to 991/2, a market source said.

Commitments are due on July 31, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used by the Bad Homburg, Germany-based provider of dialysis services and products to refinance existing debt.

Van Wagner sets talk

Van Wagner Communications held its call, launching its $227.8 million senior secured term loan B due August 2018 with talk of Libor plus 525 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on July 30, the source said.

Barclays is leading the deal that will be used to reprice an existing term loan from Libor plus 700 bps with a 1.25% Libor floor.

Van Wagner is an out-of-home advertising company.

Enven Energy pricing

Enven Energy Ventures disclosed guidance of Libor plus 800 bps with a 1.5% Libor floor and an original issue discount of 98 on its $150 million five-year second-lien term loan that launched with a bank meeting during the session, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Commitments are due on Aug. 6.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to repay existing debt and preferred equity, and for general corporate purposes.

The term loan will sit behind a $60 million ABL facility.

Enven is an exploration and production company in the Gulf of Mexico.

TIP floats OID guidance

TIP Trailer Services launched with a bank meeting in London its $150 million seven-year first-lien term loan and €163 million seven-year first-lien term loan with original issue discount talk of 99 and 101 soft call protection for one year, according to a market source.

Last week, when the deal was first announced, talk on the U.S. term loan emerged at Libor plus 425 bps with a 1% Libor floor and talk on the euro term loan came out at Euribor plus 450 bps with a 1% floor.

The company's credit facility (B1/BB+) also includes a €55 million six-year revolver that is talked at Euribor plus 387.5 bps

Credit Suisse is leading the deal, which will help fund the buyout of the company by HNA Group Co. Ltd. from GE Capital.

TIP is a European provider of transport equipment leasing, rental and service solutions.

Bowie reveals timing

Bowie Resources disclosed timing on the launch of its $491 million credit facility, with the bank meeting set to take place at 10:30 a.m. ET in New York on Thursday, according to a market source.

As previously reported, the facility consists of a $35 million ABL revolver, a $335 million first-lien term loan B and a $121 million second-lien term loan.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the $435 million acquisition of Canyon Fuel Co. LLC from Arch Coal Inc.

With the transaction, Galena Private Equity Resources Fund will provide a cash investment to acquire a minority equity stake in Bowie.

Closing is expected in the third quarter, subject to governmental and regulatory approvals and other customary conditions.

Bowie Resources is a Louisville, Ky.-based coal company.

Vantage Pipeline on deck

Vantage Pipeline scheduled a bank meeting for 2 p.m. ET on Monday to launch a $240 million credit facility that includes a $15 million revolver and a $225 million term loan B, according to a market source.

RBC Capital Markets and TD Securities (USA) LLC are leading the deal.

Ratings are expected in the BB area, the source said.

Proceeds from the credit facility and equity from Riverstone Holdings will fund the construction of the Vantage Pipeline, a roughly 700 km long high vapour pressure pipeline carrying ethane from North Dakota to Canada.

Playa readies launch

Playa Funding will host a bank meeting at 10:30 a.m. ET on Thursday to launch a $375 million credit facility that is being led by Deutsche Bank Securities Inc. and Bank of America Merrill Lynch, according to a market source.

The facility consists of a $25 million revolver and a $350 million six-year term loan B, the source said.

Proceeds from the credit facility, $300 million of senior notes and a $325 million investment from Hyatt Hotels Corp., will be used to capitalize the company.

Playa is an owner, operator and developer of all-inclusive resorts in the Dominican Republic, Mexico and Jamaica.

Quebecor plans call

Quebecor Media set a call for 11 a.m. ET on Wednesday for prospective credit facility lenders, according to a market source.

Citigroup Global Markets Inc., Scotia Capital (USA) Inc. and RBC Capital Markets are the joint lead arrangers on the deal.

Further details on the transaction are not yet available, the source added.

Quebecor is a Montreal-based media company.

U.S. Silica closes

In other news, U.S. Silica Holdings Inc. completed its $425 million senior secured credit facility (B1/BB-) that includes a $50 million five-year revolver and a $375 million seven-year term loan, a news release said.

Pricing on the revolver is Libor plus 250 bps and pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½ on new money. There is 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the tight end of the Libor plus 300 bps to 325 bps talk.

BNP Paribas Securities Corp. led the deal that was used to refinance existing senior debt, including a $50 million asset-based revolver and a $255 million term loan.

U.S. Silica is a Frederick, Md.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.