Novetta, Navex break; NN, Universal Fiber disclose deal updates; Concordia, Sucampo set talk

By Sara Rosenberg

New York, Oct. 1 – Novetta’s credit facility made its way into the secondary market on Thursday, with the first-lien term loan quoted above its original issue discount and the second-lien term loan bid in line with its issue price, and Navex Global’s add-on term debt freed up as well.

Moving to the primary market, NN Inc. widened the spread and original issue discount on its term loan, and Universal Fiber Systems LLC firmed pricing on its first-lien term loan at the high end of revised guidance.

Also, Concordia Healthcare Corp. and Sucampo Pharmaceuticals Inc. released price talk with launch, and timing emerged on B&G Foods Inc.’s term loan.

Novetta starts trading

Novetta’s credit facility broke for trading on Thursday, with the $200 million first-lien term loan (B2/B) quoted at 99¼ bid, 99¾ offered and the $85 million second-lien term loan (Caa2/CCC+) quoted at 99 bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Recently, pricing on the first-lien term loan was increased from Libor plus 450 bps, the call protection was extended from six months, pricing step-downs were eliminated and the MFN sunset provision was removed.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

The company’s $325 million credit facility also includes a $40 million revolver (B2/B).

Novetta lead banks

Jefferies Finance LLC and Societe Generale are leading Novetta’s credit facility that will be used to help fund the buyout of the company by the Carlyle Group from Arlington Capital Partners.

Other funds for the transaction will come from equity.

Closing is expected later this year, subject to customary conditions and regulatory approvals.

Novetta is a McLean, Va.-based provider of advanced analytics solutions.

Navex hits secondary

Navex’s fungible incremental term loans began trading too, with the $37 million incremental first-lien term loan seen at 99 bid, 99½ offered and the $41 million incremental second-lien term loan seen at 98½ bid, 99½ offered, a trader said.

The incremental first-lien term loan is priced at Libor plus 475 bps with a 1% Libor floor, and was issued at a discount of 99. The incremental as well as the existing first-lien term debt will have 101 soft call protection for six months.

Pricing on the incremental second-lien loan is Libor plus 875 bps with a 1% Libor floor, and it was sold at 98.5. Call protection on the incremental loan matches the existing second-lien loan call protection.

Antares Capital led the deal that was used to back the company’s recently completed acquisition of The Network Inc. and fund a return of capital to Navex’s sponsor, Vista Equity Partners.

Navex is a Lake Oswego, Ore.-based provider of ethics and compliance software, content and services. The Network is an Atlanta-based provider of ethics and compliance software, services and consulting for organizations.

NN flexes higher

Switching to the primary market, NN raised pricing on its $525 million seven-year covenant-light term loan to Libor plus 475 bps from talk of Libor plus 425 bps to 450 bps and changed the original issue discount to 98 from 99, a market source remarked.

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

The company’s $625 million senior secured deal (Ba3/BB-) also includes a $100 million five-year revolver.

KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Regions Capital Markets are leading the deal that will be used to help fund the acquisition of Precision Engineered Products Holdings Inc. for $615 million and to refinance existing debt.

Closing is expected by the end of October, subject to customary conditions and regulatory approval.

NN is a Johnson City, Tenn.-based manufacturer of high precision metal bearing components, industrial plastic and rubber products and precision metal components. Precision Engineered is an Attleboro, Mass.-based manufacturer of highly engineered precision customized solutions for the medical, electrical, transportation and aerospace end markets.

Universal Fiber updated

Universal Fiber Systems set pricing on its $165 million first-lien term loan (B1) at Libor plus 550 bps, the high end of the revised Libor plus 525 bps to 550 bps talk and wide of initial talk of Libor plus 475 bps to 500 bps, according to a market source, who said the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months were unchanged.

Furthermore, pricing on the company’s $40 million second-lien term loan (Caa1) finalized at Libor plus 950 bps, up from initial talk of Libor plus 850 bps to 875 bps, the source continued. This tranche still has a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

When the first-lien term loan was first flexed, the initial excess cash flow sweep was increased to 75% from 50%, the “free and clear” accordion was reduced to $25 million from $50 million, the MFN sunset was eliminated and the starter basket for the available amount was eliminated.

The company’s $240 million credit facility also includes a $35 million revolver (B1).

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will help fund H.I.G. Capital’s buyout of the Bristol, Va.-based manufacturer of synthetic fibers for the carpet and textile industries.

Concordia reveals talk

Concordia Healthcare held its bank meeting on Thursday morning, launching its $1.1 billion term loan with talk of Libor plus 400 bps to 425 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.

The Oakville, Ont.-based health care company’s roughly $2,075,000,000 secured credit facility (B+) also includes a $200 million revolver, and a £500 million term loan talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and RBC Capital Markets are leading the deal that will be used with senior notes and equity to fund the acquisition of Amdipharm Mercury Ltd., a London-based pharmaceutical company, from Cinven and to refinance bank debt at both companies.

Amdipharm is being bought for about $3.5 billion, consisting of cash consideration of about $1.2 billion, 8.49 million common shares of Concordia and the assumption of around $1.4 billion Amdipharm net debt, as well as a maximum performance-based earn-out of around $220 million payable in cash in the fourth quarter of 2016.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions.

Sucampo guidance surfaces

Sucampo Pharmaceuticals held its bank meeting at 1:30 p.m. ET, and shortly before the event kicked off, price talk on its $250 million senior secured term loan B came out at Libor plus 700 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two and amortization of 10% per annum, the source said.

Commitments are due on Oct. 13.

Jefferies Finance LLC is leading the loan that will be used with cash on hand to fund the acquisition of R-Tech Ueno, a Tokyo-based pharmaceutical company, for ¥33 billion, or about $278 million.

Closing is expected on Oct. 20, subject to the minimum acceptance threshold in a tender offer, regulatory approvals and other customary conditions.

Sucampo, a Bethesda, Md.-based pharmaceutical company, will have total debt to combined adjusted EBITDA of 2.9 times and total net debt to combined adjusted EBITDA of 1.5 times.

B&G coming soon

B&G Foods scheduled a bank meeting for 10 a.m. ET on Monday to launch its previously announced $500 million seven-year second secured term loan B (Ba3/BB+), a market source remarked.

Commitments are due by noon ET on Oct. 19, the source added.

Barclays, Bank of America Merrill Lynch, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and BMO Capital Markets are leading the loan that will be used with revolver borrowings to fund the company’s acquisition of the Green Giant and Le Sueur brands from General Mills Inc. for about $765 million.

Pro forma for the acquisition, net leverage will be about 5.6 times.

Closing is expected in the fourth quarter, subject to customary conditions, including regulatory approvals.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable foods. The Green Giant and Le Sueur brands are leaders in the frozen and canned vegetables market.

Beacon Roofing closes

In other news, Beacon Roofing Supply Inc. completed its acquisition of Roofing Supply Group from Clayton, Dubilier & Rice in a cash and stock transaction valued at around $1.1 billion.

To help fund the transaction, Beacon got a new $1.15 billion credit facility consisting of a $700 million five-year ABL revolver and a $450 million seven-year covenant-light senior secured term loan B (B2/BB+).

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk of Libor plus 325 bps to 350 bps.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. led the term loan. Wells Fargo was left lead on the revolver.

Beacon is a Herndon, Va.-based distributor of roofing materials and complementary building products. Roofing Supply Group is a Dallas-based distributor of roofing supplies and related materials.

Berry Plastics wraps

Berry Plastics Corp. LLC closed on its acquisition of Avintiv, a Charlotte, N.C.-based manufacturer of specialty materials used in infection prevention, personal care and high performance solutions, for about $2.45 billion from the Blackstone Group LP, a news release said.

To help fund the transaction, Berry got a new $2.1 billion first-lien term loan (Ba3/BB-) due in 2022 priced at Libor plus 300 bps with a 1% Libor floor, and sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.9 billion as the company’s second priority senior secured notes offering was downsized to $400 million from $600 million, pricing was trimmed from talk of Libor plus 325 bps to 350 bps, and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC led the deal for the Evansville, Ind.-based manufacturer of plastic consumer packaging and engineered materials.

Hanson completes deal

Hanson Building Products (Stardust Finance Holdings Inc.) closed on its acquisition of Cretex Concrete Products Inc., according to a news release.

Funding for the acquisition came from a fungible $240 million incremental first-lien term loan due March 13, 2022 led by Credit Suisse Securities (USA) LLC, Barclays and Goldman Sachs Bank USA.

Pricing on the incremental term loan is Libor plus 550 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99. Like the existing loan, the incremental loan has 101 soft call protection through March 13, 2016.

Hanson Building Products is a manufacturer of concrete and clay building products.

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