Platform Specialty, Jarden term debt unfazed by acquisition plans; Dayton shelves term loan

By Sara Rosenberg

New York, July 13 – Platform Specialty Products Corp.’s term loan debt was unchanged to slightly lower during Monday’s market hours, and Jarden Corp.’s term loan B-1 saw a weaker bid after both companies announced plans to use new debt for acquisitions.

Moving to the primary, Dayton Superior Corp. withdrew its term loan from market, and PLZ Aeroscience Corp. released price talk on its credit facility with launch.

Also, timing emerged on credit facilities from Alliant Insurance Services Inc. and Quality Distribution Inc., and Stahl joined this week’s new issue calendar.

Platform steady to down

Platform Specialty Products’ term loan debt was quoted by some traders as flat on Monday and by others as a touch lower following news that the company has received a commitment for debt financing to help fund its acquisition of Alent plc.

One trader had the term loan B-1 at par 3/8 bid, par ¾ offered, down from par ½ bid, 101 offered, and a second trader had the B-1 loan quoted at par 3/8 bid, par 7/8 offered, unchanged from Friday.

The second trader was quoting the company’s term loan B-2 at par ½ bid, 101 offered, also in line with prior levels.

The acquisition of Alent is valued at about $2.1 billion, or about 503 pence per share in cash. The transaction also includes a partial share alternative under which eligible Alent shareholders can elect to receive Platform common stock in lieu of part or all of the cash consideration.

Platform plans equity raise

Along with the debt commitment, Platform expects to fund the transaction with about $450 million of shares, and plans also include raising additional equity prior to closing to keep leverage in line with a long-term target of 4.5 times debt to EBITDA, company officials said in a conference call on Monday.

Closing is expected in late 2015 or early 2016, subject to certain conditions, including Alent shareholder approval and regulatory approvals in certain jurisdictions.

Platform is a Miami-based specialty chemicals company. Alent is a U.K.-based supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications.

Jarden B-1 bid dips

Jarden’s term loan B-1 was quoted at par ¼ bid, 101 offered, versus levels of par ½ bid, 101 offered last week as the company disclosed that it will be using new bank debt and bonds to help fund its acquisition of Waddington Group Inc., a trader remarked.

The company’s term loan B was unchanged at par 1/8 bid, par ½ offered, the trader added.

Under the agreement, Waddington, a Covington, Ky.-based disposable tableware company, is being bought from Olympus Partners and other stockholders for about $1.35 billion.

The exact mix of bank and bond debt for the transaction will be determined by conditions at the time the financing is launched, company officials said in a morning conference call.

Other funds for the transaction will come from cash on hand and an equity offering of about 7% of Jarden’s market capitalization.

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

Jarden is a Boca Raton, Fla.-based diversified consumer products company.

Dayton pulls deal

Switching to the primary market, Dayton Superior withdrew its $185 million seven-year first-lien term loan (B3/B) from market that was talked at Libor plus 475 basis points to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source said.

Credit Suisse Securities (USA) LLC was leading the deal.

Proceeds would have been used to refinance an existing $160 million term loan and to partially pay down ABL borrowings.

Dayton Superior is a Miamisburg, Ohio-based supplier to the non-residential concrete construction industry.

PLZ reveals guidance

PLZ Aeroscience held its bank meeting on Monday afternoon, launching its $30 million five-year revolver and $315 million seven-year covenant-light term loan at talk of Libor plus 450 bps with an original issue discount of 99, according to a market source.

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

Commitments are due on July 27, with closing targeted for July 31.

GE Capital Markets, NewStar and BMO Capital Markets are leading the $345 million senior credit facility (B2/B) that will be used to help fund the buyout of the company by the Pritzker Group.

PLZ is an Addison, Ill.-based manufacturer of specialty aerosol products.

Alliant Insurance on deck

Alliant Insurance set a bank meeting for 10 a.m. ET on Wednesday to launch its previously announced $1.54 billion senior secured credit facility, according to a market source. Prior to now, the deal was broadly labeled as July business.

The facility consists of a $200 million revolver and a $1.34 billion term loan B.

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will be used to help fund the purchase of a significant equity interest in the company by Stone Point Capital LLC.

In addition, the company plans to issue bonds for the transaction, which are backed by a $495 million opco bridge loan and a $175 million holdco bridge loan.

At closing, funds managed by Stone Point will become Alliant Insurance’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders in the business.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Quality Distribution sets launch

Quality Distribution scheduled a bank meeting for 10 a.m. ET on Wednesday to launch its $635 million senior secured credit facility, a market source remarked.

As previously reported, the facility consists of a $100 million asset-based revolver, a $400 million first-lien term loan and a $135 million second-lien term loan.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Jefferies Finance, Macquarie Capital, SunTrust Robinson Humphrey Inc. and Credit Suisse Securities are leading the deal, with Deutsche left lead on the first-lien and Bank of America left lead on the second-lien.

Proceeds will be used with up to $322 million in equity to fund the buyout of the company by Apax Partners for about $800 million, including the assumption of debt, or $16.00 per share in cash.

Closing is expected in the third quarter, subject to customary conditions, including shareholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Quality Distribution is a Tampa, Fla.-based logistics and transportation provider.

Stahl coming soon

Stahl scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $600 million seven-year first-lien covenant-light term loan that is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, a market source said.

Commitments are due at 5 p.m. ET on July 28, the source added.

Credit Suisse Securities and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Stahl is a Netherlands-based specialty chemicals company providing best-in-class solutions for leather products, performance coatings and polymers.

Bluestem closes

In other news, Bluestem Brands Inc. completed its acquisition of Orchard Brands Corp. for $410 million in cash, according to a news release.

To help fund the transaction, Bluestem got a fungible $280 million incremental first-lien term loan (B2/B+) due Nov. 7, 2020.

Pricing on the incremental term loan is Libor plus 750 bps with a 1% Libor floor, in line with pricing on the company’s existing $279 million term loan, and it was sold at an original issue discount of 99. The incremental term loan, as well as the existing term loan, got 101 soft call protection for six months.

Credit Suisse Securities and Morgan Stanley Senior Funding led the term loan.

The company also got a new asset-based lending facility led by Credit Suisse and U.S. Bank.

Bluestem is an Eden Prairie, Minn.-based online retailer of name-brand and private-label general merchandise serving low-to-middle-income consumers. Orchard Brands is a multichannel retailer of apparel and home products focused on serving women and men above the age of 50.

Belcan buyout wraps

The acquisition of Belcan Corp. (Propulsion Acquisition LLC) by AE Industrial Partners LLC has closed, a news release said.

To help fund the buyout, Belcan got a new $225 million credit facility that includes a $35 million ABL revolver and a $190 million six-year first-lien term loan (B3/B).

Pricing on the first-lien term loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was increased from Libor plus 550 bps, the discount was modified from 99, the call protection was extended from six months, the excess cash flow sweep was sweetened to 75% from 50%, and the maturity was shortened from seven years.

Credit Suisse Securities and PNC Capital Markets led the term loan. PNC was sole lead on the revolver.

Belcan is a Cincinnati-based engineering services and technical staffing provider in the aerospace, power generation and industrial markets.

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