Endemol, Element Materials, United break; Expro revised; Datapipe sets OID talk with launch

By Sara Rosenberg

New York, Aug. 6 – Endemol Holdings NewCo’s term loans freed up for trading on Wednesday with some of the debt quoted above its original issue discount and some of it bid right around its issue price, and Element Materials Technology and United Air Lines Inc. (United Continental Holdings) surfaced in the secondary, too.

Switching to the primary, Expro Oilfield Services plc revised the size of its funded term loan as its delayed-draw tranche was eliminated, widened price talk and adjusted original issue discount talk, Datapipe Inc. disclosed offer prices on its add-on term loans, and Prestige Brands Holdings Inc. emerged with plans to launch a new loan.

Endemol hits secondary

Endemol’s term loans broke for trading on Wednesday with the $620 million seven-year first-lien term loan quoted at 97½ bid, 98½ offered, according to a market source.

Pricing on the U.S. first-lien term loan is Libor plus 575 basis points with a 1% Libor floor and it was sold at an original issue discount of 97. There is 101 hard call protection for one year.

During syndication, the U.S. first-lien term loan was upsized from $610 million, pricing was increased from revised talk of Libor plus 525 bps and initial talk of Libor plus 475 bps, the discount widened from revised talk of 98 and initial talk of 99 and the call protection was sweetened from a 101 soft call for six months.

Endemol second-lien levels

Meanwhile, Endemol’s $457 million eight-year second-lien term loan (Caa1/CCC+) was quoted at 92 bid, 92¾ offered on the break, the source said.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was sold at discount of 92. There is call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing on the second-lien term loan was lifted from revised talk of Libor plus 875 bps and initial talk of Libor plus 825 bps, and the original issue discount was modified from revised talk of 97½ to 98 and initial talk of 99. Also, the size was original described as €335 million equivalent, split between U.S. and euro tranches before firming as an all U.S. loan.

The tweaks to the U.S. first- and second-lien term loan sizes reflect adjustments for FX rates and original issue discounts.

Endemol euro/GBP trade

Endemol’s new debt also includes a €185 million seven-year first-lien term loan priced at Euribor plus 600 bps with a 1% floor and issued at 97, and a £50 million seven-year first-lien term loan priced at Libor plus 675 bps with a 1% Libor floor and sold at 95½. These tranches have 101 hard call protection for one year.

The euro term loan was quoted at 97 bid, 98 offered and the GBP loan was quoted at 95½ bid, 96½ offered, the source remarked.

During syndication, pricing on the euro first-lien term loan was raised from revised talk of Euribor plus 525 bps and initial talk of Euribor plus 475 bps, and the discount moved from modified talk of 98 and initial talk of 99, pricing on the GBP first-lien loan was lifted from revised talk of Libor plus 575 bps and initial talk of Libor plus 525 bps, and the discount changed from revised talk of 98 and initial talk of 99, and the call protection on both tranches was reworked from a 101 soft call for six months.

Also, the most recent documentation changes to the transaction included a move to a 75% cash flow sweep and tighter debt incurrence and restricted payments flexibility.

Endemol lead banks

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Credit Suisse and Nomura are leading Endemol’s term loans, with Deutsche left lead on the first-lien and JPMorgan left on the second-lien loan.

Proceeds will be used to help fund the recapitalization of the company by Apollo Global Management.

Closing is targeted for the week of Aug. 11.

Endemol is an Amsterdam-based creator, producer and distributor of multiplatform entertainment

Element starts trading

Element Materials Technology’s credit facility freed up with the $285 million seven-year covenant-light term loan seen at 99 7/8 bid, par 3/8 offered on the break and then it moved up to par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps 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.

Recently, pricing on the term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount finalized at the tight end of the 99 to 99½ talk.

The company’s $325 million credit facility (B2) also includes a $40 million five-year revolver.

RBC Capital Markets, BNP Paribas Securities Corp., GE Capital Markets and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt, to fund two tuck-in acquisitions and to pay a dividend.

Element is a global network of laboratories with experts specializing in materials testing, product qualification testing and failure analysis.

United Air breaks

Another deal to begin trading was United Air Lines’ $500 million seven-year term loan B (Ba2/BB-), with one source quoting it at 99 bid, 99½ offered and another source quoting it at 99¼ bid, 99¾ offered.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at 99. There is 101 soft call protection for six months.

During syndication, the spread firmed at the high end of the Libor plus 275 bps to 300 bps talk and the discount firmed at the wide end of the 99 to 99½ guidance.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used by the Chicago-based airline operator to refinance existing debt.

BWIC surfaces

Also in trading, a $129.6 million Bid Wanted In Competition was announced on Wednesday for which bids are due at noon ET on Thursday, a trader remarked.

Some of the pieces of debt on offer include Energy Future Intermediate Holding Co. LLC’s first-lien DIP, Asurion LLC’s incremental term loan B-1, Chrysler Group LLC’s term loan B, Dunkin’ Brands Inc.’s term loan B-4 and term loan C, and West Corp.’s term loan B-10.

The portfolio has a little over 70 issuers, the trader added.

Expro restructures

Moving to the primary, Expro Oilfield Services revised its funded covenant-light term loan B size to $1,435,000,000 from $1.16 billion, cancelled plans for a $360 million covenant-light delayed-draw term loan, lifted price talk to Libor plus 450 bps to 475 bps from Libor plus 375 bps to 400 bps and updated original issue discount talk to 98½ to 99 from just 99, a market source said.

Pricing on the term loan can step-down by 25 bps at 4 times net total leverage.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

In addition, investor-friendly revisions were made to the debt incurrence and restricted payments terms and the MFN sunset was terminated, the source remarked.

The company’s now $1,685,000,000 credit facility also includes a $250 million revolver.

Expro refinancing

Proceeds from Expro’s credit facility will be used to refinance 8½% secured notes due 2016 and mezzanine debt.

Recommitments are due at noon ET on Friday, the source added.

Goldman Sachs Bank USA, Barclays, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal.

Expro is a U.K.-based provider of highly specialized well flow management services to the oil and gas industry.

Datapipe OID talk

Datapipe held a call on Wednesday to launch its $60 million of fungible add-on senior secured term loans, and in connection with the event, original issue discount talk was announced, according to a market source.

The $30 million add-on first-lien term loan B (B) due March 15, 2019 is talked at a discount of 98 to 98½ and the $30 million add-on second-lien term loan (CCC+) due Sept. 15, 2019 is talked at discount of 97½ to 98, the source said.

Spreads and floors on the add-on loans match the existing first- and second-lien term debt, so the add-on first-lien loan is priced at Libor plus 425 bps with a 1% Libor floor and the add-on second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor.

Also, the first-lien term loan has 101 soft call protection through Oct. 16 and the second-lien term loan has hard call protection of 101 through March 15, 2015.

Datapipe funding acquisition

Proceeds from Datapipe’s term loans will be used to fund the purchase of Layered Tech and for general corporate purposes.

Commitments are due on Tuesday and closing is targeted for Aug.15, the source added.

Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC and Jefferies Finance LLC are leading the deal.

Datapipe is a Jersey City, N.J.-based company that offers IT services.

Prestige readies deal

Prestige Brands set a call for 2 p.m. ET on Thursday to launch a new loan to prospective lenders that is being led by Citigroup Global Markets Inc., according to a market source.

In April, the company had said that it would get an add-on term loan, draw on its revolver and used cash on hand to fund its purchase of Insight Pharmaceuticals Corp. from Swander Pace Capital and Ontario Teachers’ Pension Plan for $750 million in cash and its acquisition of Hydralyte from the Hydration Pharmaceuticals Trust of Victoria, Australia, for an undisclosed amount.

Closing on the Insight purchase is expected in the first half of this fiscal year, subject to clearance under the Hart-Scott Rodino Antitrust Improvements Act and the Hydralyte transaction is expected to close in the first quarter of fiscal 2015, which began on April 1, subject to customary conditions.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products. Insight Pharmaceuticals is a Trevose, Pa.-based marketer and distributor of feminine care and other over-the-counter healthcare products. Hydralyte is an over-the-counter brand in oral rehydration in Australia and New Zealand.

United Site closes

In other news, the buyout of United Site Services Inc. (USS Parent Holding Corp.) by Calera Capital has been completed, a news release said.

To help fund the transaction, United Site got a new $265 million credit facility (B1/B) that includes a $50 million revolver, a $175 million term loan and $40 million delayed-draw term loan.

Pricing on the term loans is Libor plus 475 bps with a step-down to Libor plus 450 bps at 4 times total leverage, a 1% Libor floor and they were sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Recently, pricing on the term loans was increased from Libor plus 425 bps, the step-down was added, the delayed-draw availability was cut to 18 months from two years and the ticking fee was lifted to the full spread from half the spread for the first 180 days and the full spread thereafter.

GE Capital Markets led the deal for the San Luis Obispo, Calif.-based provider of portable sanitation services.

Sterigenics completes deal

Sterigenics International LLC (STHI Holding Corp.) closed on its $826 million acquisition of Nordion Inc., according to a news release.

To help fund the transaction, Sterigenics got a new $565 million credit facility (B2/B) that includes a $75 million revolver and a $490 million seven-year first-lien covenant-light term loan.

The term loan is priced at Libor plus 350 bps 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.

During syndication, pricing on the term loan was cut from Libor plus 425 bps.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets LLC and UBS Securities LLC led the deal.

Sterigenics is a Deerfield, Ill.-based sterilization services company. Nordion is an Ottawa-based health science company.

Ipreo buyout wraps

The purchase of Ipreo Holdings LLC by Blackstone and Goldman Sachs Merchant Banking Division from Kohlberg Kravis Roberts & Co. LP has closed, a news release said.

To help fund the buyout, Ipreo got a $390 million senior credit facility (B1/B+) that includes a $45 million revolver, and a $345 million seven-year term loan B priced at Libor plus 325 bps with a 1% Libor floor and sold at a discount of 99½. The term loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $320 million as the company’s bond offering was reduced to $185 million from $200 million and equity was cut by $10 million, pricing was trimmed from talk of Libor plus 350 bps to 375 bps and the discount was tightened from 99.

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 LLC led the deal for the New York-based provider of new issuance software services across the equity, fixed-income, municipal and syndicated loan markets.

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