Lions Gate, Guggenheim, Oxbow Carbon free up; Gardner Denver, BioScrips changes surface

By Sara Rosenberg

New York, July 18 - Lions Gate Entertainment Corp. increased the size of its term loan, lowered the spread and tightened the offer price and then broke for trading on Thursday, and Guggenheim Partners Investment Management Holdings LLC and Oxbow Carbon LLC emerged in the secondary as well.

In more happenings, Gardner Denver Inc. trimmed the coupon on its U.S. term loan and shortened the call protection, and BioScrip Inc. lowered pricing on its funded and delayed-draw term loans while revising the original issue discounts.

Also, Steinway Musical Instruments Inc. set talk with launch, and Tata Chemicals North America, TIP Trailer Services, Synagro Technologies Inc., Fresenius and Arctic Glacier LLC surfaced with new deal plans.

Lions Gate reworked, breaks

On Thursday morning, Lions Gate Entertainment lifted its seven-year second-lien term loan (Ba3/B+) to $225 million from $200 million, cut the coupon to Libor plus 400 basis points from Libor plus 450 bps and revised the offer price talk to 99¾ to par from 99, according to a market source. The offer price then firmed later in the day at par.

The loan still has a 1% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Recommitments were due at 2 p.m. ET, and with final terms in place, the loan was able to free up for trading late in the day at 101 bid, a trader added.

J.P. Morgan Securities LLC is leading the loan that will be used for the redemption of 10¼% notes due 2016 and, as a result of the upsizing, to pay down revolver borrowings.

Lions Gate is a Vancouver, B.C.-based entertainment company in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution and new channel platforms.

Guggenheim tops OID

Guggenheim Partners' $700 million seven-year covenant-light term loan B began trading too, with levels quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a step-down to Libor plus 300 bps when total leverage is 2½ times. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 993/4.

During syndication, pricing on the loan was reduced from Libor plus 350 bps, the step-down was added and the discount was revised from 99.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and Fifth Third Securities Inc. are leading the deal that is being used to refinance existing debt, to fund a distribution to parent company Guggenheim Partners LLC and for general corporate purposes.

Guggenheim Partners is a financial services firm with headquarters in New York and Chicago.

Oxbow starts trading

Oxbow Carbon's credit facility also hit the secondary market, with the $350 million six-year covenant-light term loan B (Ba3/BB+) seen at par ¾ bid, 101¼ offered, and the $350 million 61/2-year second-lien term loan (B2/BB-) seen at pat ¼ bid, a trader said.

Pricing on the first-lien term loan B is Libor plus 325 bps with a step-down to Libor plus 300 bps when first-lien leverage is 2 times. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was issued at 991/2.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor, and was sold at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan B was downsized from $500 million, pricing was cut from talk of Libor plus 350 bps to 375 bps, the step-down was added and the discount was revised from 99, and pricing on the second-lien term loan was trimmed from talk of Libor plus 725 bps to 750 bps.

Oxbow pro rata debt

In addition to the institutional term loans, Oxbow Carbon is getting an $800 million five-year revolver (Ba3/BB+) and a $300 million five-year term loan A (Ba3/BB+), both priced at Libor plus 250 bps.

Recently, the revolver was upsized from $600 million and the term loan A was increased from $250 million.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Oxbow is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

Gardner flexes U.S. loan

Back in the primary, Gardner Denver lowered pricing on its $1.8 billion seven-year U.S. term loan to Libor plus 350 bps from talk of Libor plus 400 bps to 425 bps and shortened the 101 soft call protection to six months from one year, according to a market source.

The U.S. loan still has a 1% Libor floor and an original issue discount of 99.

Recommitments on the U.S. loan are due at noon ET on Friday, the source said.

The company's $2,725,000,000 senior secured credit facility (B1/B) also provides for a $525 million seven-year euro term loan and a $400 million five-year revolver.

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 on the deal and the joint lead arrangers with KKR Capital Markets and Sumitomo Mitsui Banking.

Gardner funding buyout

Proceeds from Gardner Denver's credit facility and $675 million of senior unsecured notes will be used to fund its purchase by Kohlberg Kravis Roberts & Co. LP for $76 per share in cash, or about $3.9 billion, including the assumption of debt.

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

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

BioScrip tweaks deal

BioScrip cut pricing on its $400 million in covenant-light term loans to Libor plus 525 bps from revised talk of Libor plus 550 bps and tightened the discount to 98½ from revised talk of 98, but the debt will still come wide of initial talk of Libor plus 450 bps with a discount of 99, according to a market source.

The term debt, comprised of a $250 million funded tranche and a $150 million delayed-draw tranche that will carry the full spread from day one, still has a 1.25% Libor floor and 101 soft call protection for one year. Earlier, the floor had been increased from 1% and the all protection had been extended from six months.

The company's $475 million credit facility (B2) also includes a $75 million revolver.

Recommitments were due on Thursday.

BioScrip lead banks

SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading BioScrip's credit facility that will be used to refinance existing debt and help fund the acquisition of CarePoint Partners Holdings LLC for $223 million in cash.

Closing on the acquisition is expected to occur in the third quarter, subject to regulatory approval and customary conditions.

BioScrip is an Eden Prairie, Minn.-based provider of comprehensive infusion and home care solutions. CarePoint is a Cincinnati-based provider of home and alternate-site infusion therapy for patients with complex, acute and chronic illnesses.

Steinway reveals talk

Also on the new deal front, Steinway Musical held its bank meeting on Thursday, and with the event, talk on the $175 million six-year first-lien term loan (B1/B) came out at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

By comparison, in a recent filing with the Securities and Exchange Commission, the company said that the first-lien loan was expected at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for one year.

In addition to the first-lien loan, the company's $325 million credit facility includes a $75 million ABL revolver and a $75 million seven-year second-lien term loan (Caa1/B-) that has been pre-placed.

Commitments are due on Aug. 1, the source continued.

Steinway being acquired

Proceeds from Steinway's credit facility and equity will be used to fund the buyout of the company by Kohlberg & Co. for $35 per share in cash, or about $438 million.

Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the term loans, and GE Capital Markets is leading the revolver.

First-lien leverage is 3.7 times and 3.3 times net, and total leverage is 5 times gross and 4.6 times net.

Closing is expected in the third quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and receipt of German antitrust approvals.

Steinway is a Waltham, Mass.-based designer, manufacturer, marketer and distributor of musical instruments.

Tata Chemicals on deck

Tata Chemicals set a bank meeting for 2:30 p.m. ET in New York on Monday to launch a $340 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $25 million five-year revolver, and a $315 million seven-year term loan B talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Tata Chemicals is a Rockaway, N.J.-based natural soda ash producer.

TIP readies deal

TIP Trailer Services scheduled a bank meeting in London on Tuesday to launch a new Credit Suisse-led credit facility (B1/BB+), according to a market source.

The facility consists of a $150 million seven-year first-lien term loan talked at Libor plus 425 bps with a 1% Libor floor, a €163 million seven-year first-lien term loan talked at Euribor plus 450 bps with a 1% floor and a €55 million six-year revolver talked at Euribor plus 387.5 bps, the source remarked. Original issue discounts and call protection are not yet available.

There will not be a New York bank meeting for the deal, the source added.

Proceeds will be used to help fund the buyout of the company by HNA Group Co. Ltd. from GE Capital.

TIP is a European provider of transport equipment leasing and rental services.

Synagro coming soon

Synagro Technologies Inc. will hold a bank meeting at 10 a.m. ET on July 25 to launch a $280 million credit facility that consists of a $65 million revolver and a $215 million term loan, according to a market source.

RBC Capital Markets is leading the transaction.

Proceeds will be used to help fund the buyout of the company by EQT Infrastructure II, which will be done as part of Synagro's plans of reorganization under its bankruptcy case.

Synagro is a Houston-based recycler of biosolids and other organic residuals.

Fresenius plans call

Fresenius set a call for Tuesday to launch a $500 million six-year term loan, according to a market source.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Fresenius is a Bad Homburg, Germany-based provider of dialysis services and products.

Arctic Glacier add-on

Arctic Glacier LLC scheduled a call at 11 a.m. ET on Friday to launch a $20 million add-on first-lien covenant-light term loan due May 2019 that is talked at Libor plus 475 bps with a 1.25% Libor floor, an offer price that is still to be determined and 101 repricing protection through November 2013, according to a market source.

Pricing on the add-on and the call protection match the existing fungible $260 million term loan.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

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

Arctic Glacier is a Winnipeg-based manufacturer and distributor of packaged ice.

© 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.