Regent Seven, Oceania loans react to purchase news; new deals pile on to primary calendar

By Sara Rosenberg

New York, Sept. 2 – Regent Seven Seas Cruises’ term loan B was stronger in trading on Tuesday and Oceania Cruises’ term loan B was lower following an announcement that the parent of the two companies is being purchased by Norwegian Cruise Line Holdings Ltd.

Over in the primary, York Risk Services Group, Aecom Technology Corp., ABRA Auto Body & Glass, ExGen Texas Power, Bureau van Dijk Electronic Publishing (Yellow Maple Holding BV), TNT Crane & Rigging, Inc. (North American Lifting Holdings Inc.) and Templar Energy LLC emerged with new deal plans.

Regent, Oceania move around

Regent Seven Seas’ term loan B rose in Tuesday’s secondary market to 99 5/8 bid, par 1/8 offered from 98¾ bid, 99¼ offered and Oceania Cruises’ term loan fell to 99 7/8 bid, par 5/8 offered from par ¼ bid, par ¾ offered with news that parent company Prestige Cruises International Inc. is being acquired by Norwegian Cruise Line, according to a trader.

The purchase price for Prestige Cruises is $3,025,000,000, including the assumption of debt.

Norwegian expects to use bank debt, bonds, cash on hand and the issuance of about 20.3 million equity shares, or $670 million, to Prestige shareholders to fund the transaction.

Barclays, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the new debt.

Pro forma net leverage at Sept. 30 will be 5.3 times.

Norwegian Cruise Line, a Miami-based cruise company, expects to close on the acquisition in the fourth quarter, subject to regulatory approvals and other customary conditions.

OWIC announced

Also in trading, a cash loan Offer Wanted In Competition surfaced, and market players are being asked to get offers in by 11:30 a.m. ET on Thursday, according to a trader.

The portfolio includes bank debt from Affinity Gaming LLC, DineEquity Inc., LIN Television Corp., Swift Transportation Co. LLC and Web.com Group Inc.

In total, there are 17 issuers in the portfolio, the trader added.

BWIC surfaces

Additionally, a roughly $308 million Bid Wanted In Competition emerged, with the bid deadline set for 11 a.m. ET on Thursday, a trader said.

Some of the larger pieces of debt in the portfolio include IMS Health Inc.’s term loan B, Interactive Data Corp.’s term loan, Laureate Education Inc.’s extended term loan and Protection One Inc.’s term loan.

There are about 100 issuers in the portfolio.

York Risk sets meeting

Moving to the primary, York Risk Services scheduled a bank meeting for Thursday afternoon to launch a $655 million credit facility, a market source remarked.

The facility consists of a $100 million five-year revolver and a $555 million seven-year covenant-light term loan B, the source continued.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets, BMO Capital Markets and Nomura are leading the deal, which will be used to help fund the $1,325,000,000 buyout of the company by Onex Corp. from ABRY Partners.

York Risk is a Parsippany, N.J.-based provider of risk management, claims management and managed care services.

Aecom timing revealed

Aecom came out with timing on its deal, with a bank meeting set to take place on Thursday to launch a $1,262,500,000 seven-year covenant-light term loan B, according to a market source.

Previously, filings with the Securities and Exchange Commission had said that the term loan B is expected at Libor plus 300 basis points with a 0.75% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, MUFG Union Bank, Scotia Bank, BNP Paribas Securities Corp. and JPMorgan are leading the deal.

Aecom acquiring URS

Proceeds from Aecom’s term loan B will be used to help fund the cash consideration of the acquisition of URS Corp. and to refinance some existing debt at both companies.

URS stockholders will receive per-share consideration equal to $33.00 in cash and 0.734 of a share of Aecom common stock. URS stockholders may elect to receive all cash or all stock consideration, and the election will be subject to a customary proration mechanism to achieve an aggregate consideration mix of about 59% cash and 41% Aecom common shares.

Closing is expected in October, subject to approvals from both companies’ stockholders, regulatory approvals and customary conditions. The transaction is not conditioned on financing.

Aecom is a Los Angeles-based engineering design firm. URS is a San Francisco-based provider of engineering, construction and technical services.

ABRA readies deal

ABRA Auto Body set a bank meeting for 10 a.m. ET on Wednesday to launch a $475 million credit facility, according to a market source.

The facility consists of a $70 million revolver, a $275 million seven-year first-lien covenant-light term loan and a $130 million eight-year second-lien covenant-light term loan, the source said.

Bank of America Merrill Lynch, GE Capital Markets, Deutsche Bank Securities Inc. and Nomura are leading the deal, which will be used to help fund the company’s recently completed buyout by Hellman & Friedman LLC and senior management from Palladium Equity Partners LLC.

ABRA is a Brooklyn Park, Minn.-based provider of vehicle damage repair services.

ExGen deal emerges

ExGen Texas Power scheduled a bank meeting for Wednesday to launch a $720 million credit facility, a market source said.

The facility consists of a $20 million revolver and a $700 million seven-year term loan B, the source added.

Bank of America Merrill Lynch is leading the deal, which will be used to refinance existing debt and fund a dividend.

Bureau van Dijk coming soon

Bureau van Dijk Electronic Publishing surfaced with plans to hold a bank meeting at 5 a.m. ET in London on Thursday to launch a €620 million equivalent credit facility, according to a market source.

The facility consists of a €25 million six-year revolver talked at Euribor plus 400 bps, a €360 million seven-year term loan B talked at Euribor plus 425 bps, a €160 million equivalent pound sterling seven-year term loan B talked at Libor plus 450 bps and a €75 million equivalent dollar seven-year term loan B talked at Libor plus 425 bps, the source said.

Commitments are due on Sept. 16.

Deutsche Bank Securities Inc. and ING are the physical bookrunners, and Goldman Sachs and HSBC are bookrunners on the deal, which will be used to fund EQT’s buyout of the Amsterdam-based provider of private company information from Charterhouse and for working capital and general corporate purposes.

Closing is expected this month, subject to customary anti-trust approvals.

TNT joins calendar

TNT Crane plans to hold a bank meeting at 10:30 a.m. ET on Thursday to launch $85 million of fungible incremental senior secured term loans, a market source said.

The debt consists of a $65 million incremental first-lien term loan (B1) due November 2020 talked at Libor plus 450 bps with a 1% Libor floor and a $20 million incremental second-lien term loan (Caa1) due November 2021 talked at Libor plus 900 bps with a 1% Libor floor, the source said, adding that original issue discounts are still to be determined.

The spreads and floors on the incremental loans match the existing first- and second-lien term loans.

Macquarie Capital is leading the deal, which will be used to fund recent acquisitions and pay down revolving credit facility borrowings.

TNT Crane is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

Templar on deck

Templar Energy scheduled a bank meeting for prospective lenders for 11 a.m. ET in New York on Wednesday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal, which will be used to fund an acquisition.

Templar Energy is an Oklahoma City-based exploration and production company.

NN closes

In other news, NN Inc. completed its $450 million senior secured credit facility that includes a $100 million five-year asset-based revolver and a $350 million seven-year covenant-light term loan (B2/B+), a news release said.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor, and it was issued at a discount of 98½. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was raised from Libor plus 425 bps, the discount widened from 99, amortization was increased to 5% per annum from 1%, and the incremental facility was trimmed to $50 million subject to a 4 times leverage test from $100 million.

Bank of America Merrill Lynch and Keybanc Capital Markets led the deal, with Bank of America left lead on the term loan and Keybanc left lead on the revolver.

NN buys Autocam

Proceeds from NN’s credit facility were used to help fund the acquisition of Autocam Corp. for about $245.2 million in cash, $29.8 million in assumed debt and $25 million in stock, to refinance existing NN debt and for working capital and general corporate purposes.

NN is a Johnson City, Tenn.-based manufacturer of metal bearing components, industrial plastic and rubber products and precision metal components. Autocam is a Grand Rapids, Mich.-based manufacturer of components for fuel systems, engines and transmission, power steering and electric motors.

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