Ineos breaks; Ravago, Fairmount, Cypress Performance, Strategic Materials update deals

By Sara Rosenberg

New York, Oct. 26 – Ineos saw its U.S. term loan B emerge in the secondary market during Thursday’s market hours, and the debt was quoted above its issue price.

Over in the primary market, Ravago Holdings America Inc. set pricing on its term loan B at the wide side of guidance, Fairmount Santrol Inc. firmed the spread on its term loan at the high end of revised talk and the original issue discount at the tight end of revised talk, and Cypress Performance Group shifted some funds between its first-and second-lien term loans and modified pricing.

Also, Strategic Materials Inc. tightened spreads and original issue discounts on its first-and second-lien term loans, and Medallion Midland Acquisition LLC and MHS (Material Handling Systems) moved up the commitment deadlines on their term loans.

Additionally, Intralinks Holdings Inc., Capital Automotive LP, Nautilus Power LLC, TerraForm Power Operating LLC, Sensata Technologies BV, Tecomet, Unifrax, Resolute Investment Managers and Lyons Magnus Inc. released price talk with launch, and Avaya Inc. and Barbri joined the near-term calendar.

Ineos hits secondary

Ineos’ $1.66 billion term loan B (Ba1/BB+/BBB-) due March 31, 2024 began trading on Thursday, with levels quoted at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 200 basis points with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was cut from Libor plus 225 bps, and the issue price firmed at the tight end of the 99.75 to par talk.

The company is also getting a €2.06 billion term loan B (Ba1/BB+/BBB-) due March 31, 2024 priced at Euribor plus 200 bps with a 0.5% floor and issued at par.

The floor on the euro loan finalized during syndication at the low end of revised talk of 0.5% to 0.75% and down from initial talk of 0.75%, and the issue price was set at the tight end of the 99.75 to par talk.

Ineos lead banks

Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the global coordinators, joint lead arrangers and lead bookrunners on Ineos’ term loans. BMO Capital Markets, Credit Suisse, Deutsche Bank Securities Inc., ING and Lloyds are joint bookrunners.

The new term loans will be used with €550 million of notes and cash received from Styrolution to refinance existing secured term loans.

The borrowers are Ineos US Finance LLC and Ineos Finance plc.

Closing is expected on Nov. 3.

Ineos is a Frankfurt-based manufacturer of petrochemicals, specialty chemicals and oil products.

Ravago firms spread

Switching to the primary market, Ravago set pricing on its $321 million covenant-light term loan B due July 13, 2023 at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps talk, a market source remarked.

As before, the loan has no floor, a par issue price and 101 soft call protection for six months.

Commitments were due at the end of the day on Thursday, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with no floor.

Ravago is a provider of distribution, resale, compounding and recycling services for plastic and elastomeric raw materials markets.

Fairmount Santrol updated

Fairmount Santrol finalized pricing on its $700 million five-year covenant-light first-lien term loan (B3/B-) at Libor plus 600 bps, the high end of revised talk of Libor plus 575 bps to 600 bps, and up from initial talk of Libor plus 475 bps, and firmed the original issue discount at 98.5, the tight end of revised talk of 98 to 98.5, but wide of initial talk of 99.5, according to a market source.

The term loan still has a 1% Libor floor and soft call protection of 102 in year one and 101 in year two.

Previously in syndication, the call protection was revised from a 101 soft call for one year and the maturity was shortened from seven years.

Final commitments and credit agreement comments are due at noon ET on Friday, the source added.

Barclays is leading the deal that will be used to refinance existing term loans.

Fairmount Santrol is a Chesterfield, Ohio, provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells.

Cypress sets changes

Cypress Performance Group lifted its seven-year covenant-light first-lien term loan to $475 million from $460 million, reduced pricing to Libor plus 325 bps from talk in the range of Libor plus 375 bps to 400 bps, added a step-down to Libor plus 300 bps at corporate family ratings of B1/B+ and adjusted the original issue discount to 99.75 from 99.5, a market source said. This tranche still has a 1% Libor floor and 101 soft call protection for six months.

The company also downsized its eight-year covenant-light second-lien term loan to $135 million from $150 million, lowered pricing to Libor plus 750 bps from talk in the range of Libor plus 800 bps to 825 bps and tightened the discount to 99.5 from 99, the source continued. The 1% Libor floor and call protection of 102 in year one and 101 in year two on this loan were unchanged.

The company’s $695 million of credit facilities include an $85 million revolver as well.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc. and M&T Bank are leading the deal that will be used to fund the combination of Encapsys LLC and IPS Corp.

Cypress Performance is an advanced materials and diversified products provider.

Strategic Materials flexes

Strategic Materials cut pricing on its $235 million seven-year first-lien term loan (B2/B) to Libor plus 375 basis points from Libor plus 400 bps, confirmed a previously contemplated 25 bps step-down at 4 times net first-lien leverage and moved the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

Regarding the $80 million eight-year second-lien term loan (Caa2/CCC+), pricing was trimmed to Libor plus 775 bps from Libor plus 800 bps and the discount was revised to 99 from 98.5, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $355 million of senior secured credit facilities also include a $40 million revolver (B2/B).

Recommitments were due at noon ET on Thursday, the source added.

Goldman Sachs Bank USA, BMO Capital Markets and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co. LLC.

Strategic Materials is a Houston-based environmental services company.

Medallion accelerated

Medallion Midland moved up the commitment deadline on its $700 million seven-year first-lien term loan (B2//BB+) to 5 p.m. ET on Monday from Nov. 3, a market source remarked.

Talk on the term loan is Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $725 million of credit facilities also include a $25 million super-priority revolver.

Jefferies LLC is leading the deal that will be used to fund the acquisition of the company by Global Infrastructure Partners from the Energy & Minerals Group and Laredo Petroleum Inc. for $1,825,000,000 plus potential additional cash consideration, subject to customary closing adjustments.

Medallion is an Irving, Texas-based crude oil gathering and intra-basin transportation system in the Midland Basin, within the eastern half of the prolific Permian Basin.

MHS revises deadline

MHS accelerated the commitment deadline on its fungible $25 million add-on term loan B to noon ET on Friday from Monday, according to a market source.

Pricing on the add-on term loan matches existing term loan B pricing at Libor plus 500 bps with a 1% Libor floor, and the add-on is offered at par.

RBC Capital Markets is leading the deal that will be used for acquisitions.

With the add-on, the company is looking to replace the current financial maintenance covenant under the term loan B with a springing financial covenant.

Consenting lenders will be paid a 5 bps amendment fee.

Including the add-on, the term loan B will total $264.4 million.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Intralinks holds meeting

In more primary news, Intralinks hosted its bank meeting on Thursday and, with the event, released price talk on its $450 million seven-year covenant-light first-lien term loan (B2/B) and $150 million eight-year covenant-light second-lien term loan (Caa2/B-), a market source said.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $650 million senior secured deal also includes a $50 million five-year revolver (B2/B).

Commitments are due on Nov. 9.

RBC Capital Markets, Golub Capital and Macquarie Capital are leading the deal that will help fund the buyout of the company by Siris Capital Group LLC from Synchronoss Technologies Inc. for about $1 billion.

Closing is expected in mid-November, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals.

Intralinks is a New York-based provider of cloud-based virtual data room and highly secure team collaboration solutions to financial institutions and enterprises.

Capital Automotive talk

Capital Automotive launched on its call its $1.1 billion term loan B (B1/B) due March 24, 2024 at talk of Libor plus 250 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Cashless roll is available.

Commitments/consents are due at noon ET on Wednesday, the source added.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Nautilus price guidance

Nautilus Power held its lender call, launching its $573,562,500 senior secured first-lien term loan B (B1/B+) due May 16, 2024 at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments/consents are due at noon ET on Nov. 2, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

TerraForm terms surface

TerraForm released talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $300 million five-year covenant-light term loan B (Ba1/BB+) that launched with a morning bank meeting, a market source said.

Commitments are due on Nov. 8, the source added.

RBC Capital Markets, the Bank of Nova Scotia, BMO Capital Markets, HSBC Securities (USA) Inc., Natixis and SMBC are leading the deal that will be used with cash on hand to repay a non-recourse portfolio term loan that was entered into in December 2015.

TerraForm Power is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets. The company is sponsored by Brookfield Asset Management.

Sensata hosts call

Sensata Technologies held its afternoon lender call and launched its $927,794,128 senior secured covenant-light term loan B (Baa3/BBB-) due Oct. 14, 2021 at talk of Libor plus 175 bps to 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B and amend certain covenants and definitions.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

Tecomet repricing details

Tecomet launched on its morning call its $538.7 million first-lien term loan at talk of Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used reprice an existing term loan down from Libor plus 375 bps with a step-down to Libor plus 350 bps at 4 times net first-lien leverage and a 1% Libor floor.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

Unifrax launches

Unifrax held its lender call and disclosed price talk on its fungible $57 million add-on first-lien term loan (B2/B), repricing of its $458,850,000 first-lien term loan (B2/B), repricing of its €186 million first-lien term loan (B2/B) and $100 million second-lien term loan (Caa1/B-), according to a market source.

Talk on the add-on term loan and U.S. first-lien term loan is Libor plus 350 bps with a 1% Libor floor, and talk on the euro first-lien term loan is Euribor plus 375 bps with a 0% floor. The add-on first-lien term loan is talked with an original issue discount of 99.75, the repricing of the U.S. and euro first-lien term loans are offered with a 10 bps amendment fee, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

The second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, an original issue discount of 99, and hard call protection of 102 in year one and 101 in year two, the source said.

Goldman Sachs Bank USA, KeyBanc Capital Markets and ING are leading the deal.

The add-on term loan and second-lien term loan fund a dividend recapitalization, the U.S. first-lien term loan repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor and the euro first-lien term loan repricing will take the existing term loan down from Euribor plus 400 bps with a 0% floor.

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

Unifrax is a Tonawanda, N.Y.-based specialty materials platform.

Resolute comes to market

Resolute Investment Managers launched during the session a $105 million second-lien term loan talked at Libor plus 750 bps with a 1% Libor floor, a par issue price and hard call protection of 102 in year one and 101 in year two, a market source remarked.

Commitments are due on Tuesday, the source added.

RBC Capital Markets LLC and Barclays are leading the deal that will be used to reprice an existing second-lien term loan down from Libor plus 875 bps with a 1% Libor floor.

Earlier this month, the company syndicated a repricing of its $289.8 million first-lien term loan at Libor plus 325 bps, following a flex from Libor plus 375 bps, with a 1% Libor floor and a par issue price. The repriced first-lien loan has 101 soft call protection for six months.

The first-lien term loan was repriced from Libor plus 450 bps with a 1% Libor floor.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets.

Lyons Magnus guidance

Lyons Magnus came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $190 million seven-year covenant-light first-lien term loan B (B1/B-) that launched with a morning bank meeting, according to a market source.

Commitments are due on Nov. 7, the source said.

RBC Capital Markets and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by Paine Schwartz Partners.

Lyons Magnus is a Fresno, Calif.-based food and beverage manufacturing company.

Avaya timing emerges

Avaya set a bank meeting for 10 a.m. ET in New York on Wednesday to launch its proposed $2,425,000,000 first-lien term loan, according to a market source.

Based on the commitment letter, the term loan is expected to have a seven-year maturity and pricing of Libor plus 450 bps.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the company’s exit from Chapter 11.

In addition to the term loan, the company has received a commitment for a $300 million five-year senior secured asset-based lending facility that is expected to be priced at Libor plus 175 bps, subject to a grid based on average daily historical excess availability.

Avaya is a Santa Clara, Calif.-based business communications company.

Barbri on deck

Barbri will hold a bank meeting in New York on Nov. 7 to launch new senior secured credit facilities, a market source said.

Antares Capital is leading the deal that will be used to refinance the company’s existing $286 million in senior secured credit facilities first put in place in 2011.

Barbri, a Leeds Equity Partners portfolio company, is a Dallas-based provider of practical legal education.

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