Generation Brands, Albany Molecular update deals; primary activity continues to blossom

By Sara Rosenberg

New York, June 6 – Generation Brands Holdings Inc. on Monday trimmed the spread on its first-lien term loan and extended the call protection, and Albany Molecular Research Inc. firmed the original issue discount on its add-on term loan at the tight end of talk.

Also, AlliedUniversal (USAGM Holdco LLC), RadNet Management Inc., World Kitchen (WKI Holding Co. Inc.), Verso Corp., Petco Animal Supplies Inc., SRS Distribution Inc. and PolyOne Corp. disclosed price talk with launch, and Life Time Fitness Inc. (LTF Merger Sub Inc.) came out with original issue discount guidance on its incremental term loan.

In addition, Vertafore (VF Holding Corp.), NRG Energy Inc., Linden Cogeneration (EFS Cogen Holdings I LLC), Microsemi Corp., Forterra (Stardust Finance Holdings Inc.), Global Healthcare Exchange LLC, US Foods Inc. and Extreme Reach Inc. joined this week’s primary calendar, and Strategic Partners came out with a bank meeting date for its credit facility.

Generation Brands revised

Generation Brands on Monday lowered pricing on its $180 million six-year first-lien term loan (B1/B) to Libor plus 500 basis points from Libor plus 550 bps and pushed out the 101 soft call protection to one year from six months, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99.

The company’s $310 million credit facility also includes a $50 million ABL revolver and an $80 million 6.5-year second-lien term loan (Caa1/CCC+).

Pricing on the second-lien term loan was unchanged at Libor plus 1,000 bps with a 1% Libor floor and a discount of 97, and the debt still has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments were due at 2 p.m. ET on Monday, the source added.

Deutsche Bank Securities Inc., Barclays and ING are leading the deal that will be used to help fund the buyout of Generation Brands, a designer and provider of lighting fixtures, by AEA Investors.

Albany Molecular sets OID

Albany Molecular Research firmed the original issue discount on its fungible $230 million add-on senior secured term loan due July 2021 at 99, the tight end of the 98.75 to 99 talk, a market source remarked.

Pricing on the add-on term loan is Libor plus 475 bps with a 1% Libor floor, and all of the term loan debt is getting 101 soft call protection for six months.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of Prime European Therapeuticals SpA from Lauro Cinquantasette SpA for €315 million, consisting of €164 million in cash at closing, stock and a €55 million deferred cash consideration.

Albany Molecular is an Albany, N.Y.-based drug discovery services and manufacturing company. Prime European is a Lodi, Italy-based pharmaceuticals company.

AlliedUniversal discloses talk

In more primary news, AlliedUniversal held its bank meeting on Monday afternoon, and a few hours before the event kicked off, price talk emerged on its funded and delayed-draw term loans, a market source said.

The $1.26 billion incremental first-lien term loan due July 28, 2022 and the $250 million delayed-draw first-lien term loan due July 28, 2022 are talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99, the source continued.

Included in the term debt is 101 soft call protection for six months.

The company’s $1.68 billion of new loans (B2) also include a $170 million add-on revolver.

Commitments are due on June 17.

AlliedUniversal lead banks

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank, HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Societe Generale are leading AlliedUniversal’s loan deal.

Proceeds will be used to fund the merger of AlliedBarton Security Services, a portfolio company of Wendel, and Universal Services of America, a portfolio company of Warburg Pincus and Partners Group, and to fund potential add-on acquisitions.

Upon completion of the merger, Wendel will receive about 33% of the shares of AlliedUniversal, Warburg Pincus will get about 33% of the shares of the combined company and Partners Group will have about 17%.

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

AlliedBarton is a provider of security services. Universal Services is a Santa Ana, Calif.-based security company and a provider of janitorial solutions, as well as safety and emergency preparation services.

RadNet guidance

RadNet released talk of 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 on its $485 million seven-year term loan B that launched with a bank meeting during the session, a source said.

The company’s $585 million credit facility (Ba3) also includes a $100 million five-year revolver.

Commitments are due at 5 p.m. ET on June 20, the source added.

Barclays, SunTrust Robinson Humphrey Inc., Capital One, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance an existing $444.8 million first-lien term loan, pay down any outstanding revolver drawings, which were $16.3 million at March 31, and repay a portion of an existing $180 million second-lien term loan.

Closing is expected this month.

Net first-lien leverage is 3.5 times and net total leverage is 4.8 times.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

World Kitchen details emerge

World Kitchen launched at its afternoon bank meeting a $275 million seven-year senior secured term loan B (B2/B) talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 17, the source said.

Citigroup and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of the company by GP Investments.

The anticipated initial enterprise value of World Kitchen is about $566 million at $10 per share, implying a multiple of 7.2 times projected calendar year 2016 adjusted EBITDA of $78 million, and post-closing equity value of $330 million.

Closing is expected in late July.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, cookware, storage and cutlery products.

Verso releases terms

Verso came out with talk of Libor plus 750 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $225 million six-year term loan B (B2) in connection with its bank meeting, a market source remarked.

The company’s $575 million credit facility also includes a $350 million five-year ABL revolver that has pricing ranging from Libor plus 125 bps to Libor plus 200 bps based on excess availability and an unused fee ranging from 25 bps to 37.5 bps based on utilization, according to an 8-K filed with the Securities and Exchange Commission.

Commitments are due at 5 p.m. ET on June 20, and closing is expected in July.

Barclays, Citigroup and Credit Suisse are the bookrunners on the term loan, and Wells Fargo Securities LLC and Barclays are the arrangers on the ABL revolver.

Proceeds will be used to help fund the company’s emergence from Chapter 11 bankruptcy.

Leverage is 1.4 times.

Verso is a Memphis-based producer of printing and specialty papers and pulp.

Petco launches

Petco launched on its lender call repricings of its $1.82 billion term loan B-1 due Jan. 26, 2023 and its $698 million term loan B-2 due Jan. 26, 2023, according to a market source.

The term loan B-1 is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, and the term loan B-2 is talked at Libor plus 400 bps to 425 bps with no Libor floor, with both loans having a 25 bps step down in pricing when first-lien leverage is 4 times, a par issue price and 101 soft call protection until January 2017, the source said.

The repricing will take the existing term loan B-1 down from Libor plus 475 bps with a 1% Libor floor and the existing term loan B-2 down from Libor plus 500 bps with no Libor floor.

Cashless roll commitments are due at 5 p.m. ET on June 13, new money lender commitments are due at 5 p.m. ET on June 14, and closing is expected on or before June 17, the source added.

Citigroup, Barclays, RBC, Credit Suisse, Nomura and Macquarie Capital (USA) Inc. are leading the senior secured deal.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

SRS holds meeting

SRS Distribution had its bank meeting, launching its $127 million incremental first-lien covenant-light term loan (B2/B) due Aug. 25, 2022 with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source said.

Also, the company’s new $130 million second-lien covenant-light term loan (Caa1/CCC+) due Feb. 25, 2023 was launched with talk of Libor plus 900 bps with a 1% Libor floor, a discount of 97 to 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Commitments are due at 5 p.m. ET on June 20.

Barclays and UBS Investment Bank are leading the $257 million of term loans, with Barclays left lead on the first-lien term loan and UBS left lead on the second-lien term loan.

Proceeds will be used with a $20 million draw under the company’s existing $275 million ABL facility to fund a dividend to existing shareholders.

SRS Distribution is a McKinney, Texas-based roofing distributor.

PolyOne seeks repricing

PolyOne held its lender call, launching a repricing of its $548.6 million senior secured covenant-light term loan B due Nov. 12, 2022 with talk of Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The repricing will take pricing on the term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Commitments are due at noon ET on Friday, and closing is expected in the week of June 13, the source said.

Citigroup is leading the deal.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Life Time reveals OID

Life Time Fitness disclosed original issue discount talk in the 98.625 area on its fungible $100 million incremental covenant-light term loan B due June 2022 that launched with a morning lender call, according to a market source.

The incremental loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due at noon ET on Wednesday.

Deutsche Bank is leading the deal that will be used to repay revolver borrowings and to add cash to the balance sheet.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

Vertafore on deck

Also on the new deal front, Vertafore surfaced with plans to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $1.2 billion credit facility, a market source remarked.

The facility consists of a $100 million five-year revolver and a $1.1 billion seven-year covenant-light first-lien term loan that has 101 soft call protection for six months, the source continued.

Commitments are due on June 22.

Credit Suisse, Citigroup, Morgan Stanley and Mizuho are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity and Vista Equity Partners from TPG Capital.

Closing is expected in the third quarter.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

NRG new loan

NRG Energy scheduled a lender call for 11 a.m. ET on Tuesday to launch a $1.9 billion senior secured term loan B, according to a market source.

Citigroup is leading the deal.

NRG Energy is a wholesale power generation company with headquarters in Princeton, N.J., and Houston.

Linden coming soon

Linden Cogeneration will hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $1,125,000,000 senior secured credit facility, a market source said.

The facility consists of a $125 million revolver and a $1 billion first-lien term loan B.

Morgan Stanley, Barclays, Citigroup and MUFG are leading the deal that will be used to recapitalize the borrower in connection with Ares EIF’s acquisition, to refinance Linden’s existing debt and to fund a debt service reserve account, the source added.

Linden Cogeneration is the owner of a natural gas-fired combined-cycle cogeneration project located in Linden, N.J.

Microsemi readies deal

Microsemi set a lender call for 10 a.m. ET on Tuesday for term loan A lenders and one for 11 a.m. ET on Tuesday for term loan B lenders, according to a market source.

The purpose of the calls is to launch a $250 million incremental senior secured term loan A that will be used to refinance a portion of the existing term loan B and to launch a repricing of the $854 million senior secured term loan B, the source said.

Morgan Stanley is leading the transaction (BB).

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Forterra joins calendar

Forterra plans to hold a call at 11 a.m. ET on Tuesday to launch a fungible $270 million incremental covenant-light first-lien term loan due March 13, 2022 talked at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The spread and floor on the incremental term loan matches the existing term loan, and all of the term debt will get 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 14, the source said.

Credit Suisse is leading the deal that will be used to fund a distribution to shareholders.

Forterra, formerly known as Hanson Building Products, is an Irving, Texas-based manufacturer of drainage and water transmission pipe and products.

Global Healthcare plans loan

Global Healthcare Exchange will hold a lender call on Tuesday to launch a $43 million add-on term loan and a repricing of its existing $373 million term loan talked at Libor plus 425 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Original issue discount talk on the add-on term loan is 99.75, and the repricing is offered at par, the source said.

SunTrust is leading the deal.

Proceeds from the add-on will be used to fund an acquisition, and the repricing will reduce pricing on the existing term loan from Libor plus 450 bps with a 1% Libor floor.

Global Healthcare Exchange is a Louisville, Colo.-based provider of health-care supply chain solutions.

US Foods sets call

US Foods surfaced with plans to hold a lender call at 2 p.m. ET on Tuesday to launch a new loan transaction, a market source said.

Citigroup is leading the deal.

US Foods is a Chicago-based broadline foodservice distributor.

Extreme Reach restating

Extreme Reach set a bank meeting for Thursday to launch basically an amendment and restatement of its existing credit facility that will modify, among other things, covenants, according to a market source.

Currently, the company has a $316 million first-lien term loan due February 2020 priced at Libor plus 625 basis points with a 1% Libor floor and a $165 million second-lien term loan due February 2021 priced at Libor plus 950 bps with a 1% Libor floor.

SunTrust is leading the deal.

Extreme Reach is a Needham, Mass.-based video platform for integrated TV, online and mobile advertising.

Strategic Partners timing

Strategic Partners scheduled a bank meeting for 10:30 a.m. ET in New York on Thursday to launch its $370 million credit facility, a market source said. Previously, the deal was expected to be this week’s business, but a specific meeting date was unavailable.

The facility consists of a $45 million revolver and a $325 million first-lien term loan.

UBS Investment Bank, Credit Suisse and Goldman Sachs & Co. are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

BWICs surface

Moving to the secondary market, a $238.9 million Bid Wanted In Competition was announced, with bids due at 10 a.m. ET on Tuesday, and a roughly $61 million BWIC emerged, with bids due at noon ET on Tuesday, according to traders.

Some of the names in the $238.9 million BWIC are American Capital Ltd., Avaya Inc., Catalent Pharma Solutions Inc., Chrysler Group LLC, Deltek Inc., Federal-Mogul Holdings Corp., Infor (US) Inc., Intelsat Jackson Holdings SA, Onex Carestream Finance LP, Reynolds Group Holdings Inc. and US Foodservice. There are about 89 issuers in the portfolio.

The roughly $61 million BWIC includes debt from, among others, BarBri Inc., Seadrill Operating LP, Southcross Holdings Borrower LP, Zuffa LLC, CHS/Community Health Systems Inc., Hertz Corp. and Valeant Pharmaceuticals International Inc. There are about 20 issuers in the portfolio, traders added.

© 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.