Caesars Growth details $1.32 billion; Air Methods upsizes, tightens

By Paul A. Harris

Portland, Ore., April 12 – In Wednesday's loan market Caesars Growth Properties Holdings, LLC detailed $1,318,000,000 of first lien term loans.

And Air Methods Corp. upsized its seven-year term loan B to $1.22 billion from $1.07 billion.

Caesars Growth details

Caesars Growth Properties Holdings, LLC was scheduled to launch $1,318,000,000 of first lien term loans due May 2021 on Wednesday, according to a market source.

The repricing/refinancing deal, via Credit Suisse Securities (USA) LLC, features two tranches. It includes $1,143,000,000 of the debt that is being repriced at Libor plus 325 basis points from 525 bps and a $175 million Libor plus 375 bps incremental loan.

The spreads on both tranches float atop 1% Libor floors.

Both tranches are talked at 99.75 to par.

There is a reset six-month soft call at 101.

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

In addition to the repricing, proceeds from the incremental loan will be used to refinance the term loan used to acquire the Cromwell from Caesars Entertainment Operating Company, Inc.

Air Methods upsizes, tightens

Air Methods upsized its seven-year term loan B to $1.22 billion from $1.07 billion.

At the same time the spread to Libor tightened to 350 basis points from 375 bps, and the reoffer price was increased to 99.5 from 99.

The deal now features an MFN provision at 50 bps for the life of the loan.

The 1% Libor floor remains unchanged, as does the 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets and Jefferies Finance LLC are the lead banks on the deal.

The credit facilities also include a $125 million five-year revolver.

With the upsize of the term loan a secured aircraft financing was downsized by $150 million.

Proceeds will be used to help fund the buyout of the company by American Securities LLC for $43.00 per share in cash in a transaction with a total enterprise value of about $2.5 billion, including net debt.

Blount allocates

Blount International Inc.’s $471.4 million repricing of its term loan B due April 12, 2023 allocated on Wednesday, according to a market source.

The deal came at par with a 500 basis points spread to Libor, on top of price talk and at the tight end of the 500 to 525 bps spread talk.

The repriced loan features a 1% Libor floor and 101 soft call protection for six months.

Barclays is the lead bank on the deal.

Proceeds will be used to reprice an existing term loan B down from Libor plus 625 bps with a 1% Libor floor.

World Kitchen details $200 million

World Kitchen (WKI Holding Co. Inc.) detailed a $200 million seven-year first lien term loan B (B1/BB-) on Wednesday, according to a market source.

The deal is talked with a 450 basis points to 475 bps spread to Libor atop a 1% Libor floor at 99.

It features six months of soft call protection at 101 and has a 1% annual amortization rate.

Commitments are due on April 20.

The deal is expected to close on May 1.

Administrative agent Citigroup Global Markets is the left joint lead arranger. BMO Securities is also a joint lead arranger.

Proceeds will be used to help fund the buyout of the company by Cornell Capital LLC.

Sequa upsizes

Sequa Corp. upsized its 4.5-year covenant-light first-lien term loan B (//B) to $900 million from $600 million, and concurrently abandoned plans to sell $300 million of senior secured notes, according to a market source.

Final commitments are due at 5 p.m. ET on Thursday.

The credit facility, now sized at $1,385,000,000, also features a $350 million five-year covenant-light second-lien term loan (//CCC) and a $135 million revolver (//B).

The first-lien term loan is talked at Libor plus 575 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 1,000 bps to 1,050 bps with a 1% Libor floor and a discount of 98.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Barclays is the left lead on the deal.

Proceeds will be used for a recapitalization/refinancing of existing debt.

Industrial Container talk

Industrial Container Services LLC talked its $425 million seven-year first lien term loan (B2/B) with a 400 bps to 425 bps spread to Libor atop a 1% Libor floor at 99.5, according to a market source.

The loan, $360 million of which will be funded and $65 million will be delayed draw, comes with six months of soft call protection at 101 and 1% annual amortization.

Commitments are due on April 25.

Goldman Sachs Bank USA is the lead bank on the deal.

The $465 million credit facility also features a $40 million revolver.

Proceeds will be used to help fund the buyout of the company by Centerbridge.

Tecomet tightens talk

After moving up the deadline on its $540 million seven-year first-lien term loan on Tuesday, Tecomet (TecoStar Holdings Inc.) tightened spread talk and cut discount talk on Wednesday, according to a market source.

New talk has the loan coming with a spread of Libor plus 375 basis points, decreased from 400 bps. There is a step-down to 350 bps if net leverage falls to 4.0 times, which would represent a 0.5 times decrease from the closing level.

The spread will float atop a 1% Libor floor.

The discount is decreased to half a point, or 99.5, from the previous full point of discount talk.

There is 50 bps of MFN for the life of the loan, decreased from 75 bps, with 18 months of sunset talk.

With the revisions the commitment deadline is moved back five hours, to 5 p.m. ET on Thursday, from the earlier noon deadline. When the deal was launched it was expected to be in the market until April 17.

The company’s $835 million credit facilities also include a $70 million ABL revolver and a $225 million pre-placed second-lien term loan.

Jefferies Finance LLC, Antares Capital and KKR Capital are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Charlesbank Capital Partners.

First-lien leverage is 4.5 times, and total leverage is 6.4 times.

Sutherland Global sets Thursday call

Sutherland Global Services, Inc. will participate in a lender call scheduled to get underway at 10 a.m. ET on Thursday, according to a syndicate source.

The business outsourcing services provider is in the market with a $50 million fungible incremental first lien term loan due April 2021.

Pricing features a 537.5 basis points spread to Libor atop a 1% Libor floor at 97.

The loan features 101 soft call protection for 12 months.

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

Credit Suisse Securities (USA) LLC is the lead.

Proceeds will be used to repay bank debt.

Varsity Brands sets talk

Varsity Brands set price talk in its effort to reprice $1,003,000,000 of outstanding first lien term loan debt, according to a market source.

The Memphis-based provider of sports, cheerleading and achievement-related school products is talking the deal with a 325 basis points spread to Libor atop a 1% Libor floor at par. The present spread to Libor is 400 bps.

The deal comes with six months of call protection at 101 and 1% annual amortization.

Commitments are due at 4 p.m. ET on April 19.

Goldman Sachs & Co. is the left bookrunner. Barclays and Jefferies LLC are the joint bookrunners.

PSAV talks term loan

PSAV (AVSC Holding Corp.) talked its $980 million seven-year term loan B with a 350 bps to 375 bps spread to Libor atop a 1% Libor floor at 99.5, according to a market source.

The deal comes with six months of call protection at 101.

Commitments are due on April 21.

Goldman Sachs & Co is the left bookrunner. Morgan Stanley, JP Morgan, Barclays and Macquarie are joint bookrunners.

The Long Beach, Calif.-based event technology provider plans to use the proceeds to refinance its capital structure.

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