Montreign firms issue price; Affinity, Univar launch; primary calendar continues to build

By Sara Rosenberg

New York, Jan. 6 – Montreign Operating Co. LLC finalized the issue price on its incremental first-lien term loan at the tight end of guidance, and then the debt allocated on Friday. Affinity Gaming and Univar Inc. approached lenders with repricing transactions.

Furthermore, Avolon, Columbus McKinnon Corp., SBA Senior Finance II LLC, Realogy Holdings Corp., Penn National Gaming Inc., Tibco Software Inc., FleetCor Technologies Inc. and Summit Materials LLC joined the near-term primary calendar, and some more details on American Bath Group LLC’s proposed incremental loans surfaced.

Montreign sets pricing

Montreign Operating on Friday firmed the issue price on its fungible $25 million incremental first-lien term loan at par, the tight end of the 99.5 to par talk, and then allocated the debt in the afternoon, according to a market source.

The incremental loan is priced at Libor plus 825 basis points with a 1% Libor floor. It is non-callable for 2.5 years, then at 102 for a year and 101 for a year.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to shift funds from the company’s furniture, fixtures and equipment financing to term loan B debt.

Montreign Operating is a casino operator in the Hudson Valley.

Affinity holds call

Affinity Gaming hosted a lender call at 1:30 p.m. ET on Friday to launch a $328.5 million covenant-light first-lien term loan (B1/B+) due July 1, 2023 that is talked at Libor plus 350 bps with a 1% Libor floor and 101 soft call protection for six months, a market source remarked.

Existing lenders are being offered a 25 bps consent fee, and new money is talked with an original issue discount of 99.75, the source added.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse, Fifth Third Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

Univar launches

Univar launched with a lender call in the morning a repricing of its $2,024,000,000 term loan B talked at Libor plus 275 bps to 300 bps with no Libor floor, according to a market source.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals.

Avolon on deck

Also in the primary market, Avolon set a lenders’ presentation for 9:30 a.m. ET on Monday to launch a $5.5 billion senior secured first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole Corporate and Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the acquisition of CIT Group Inc.’s commercial aerospace leasing business for $10 billion.

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

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Columbus timing emerges

Columbus McKinnon scheduled a bank meeting for 10:30 a.m. ET on Monday to launch the debt for its acquisition of Stahl CraneSystems and its bank debt refinancing, and the new deal is now structured as a $445 million seven-year first-lien term loan, a market source remarked.

JPMorgan is leading the deal.

The company had originally received a commitment for a $395 million seven-year first-lien term loan B and a $100 million eight-year second-lien term loan for the acquisition, but the amount of debt needed was reduced and the transaction was switched to an all first-lien structure since the company agreed to sell shares of common stock in a private placement for expected gross proceeds of $50 million and use the proceeds for the acquisition.

Stahl is being bought from Konecranes plc for €224 million with an earn-out potential of up to €230 million if certain earnings goals are met for calendar year 2016.

Closing is expected on or about Jan. 31 as all conditions to the acquisition have already been met.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of material handling products, technologies and services. Stahl is a Germany-based manufacturer of explosion-protected hoists and crane components.

SBA coming soon

SBA Senior Finance emerged with plans to hold an investor meeting at 1 p.m. ET on Monday to launch a repricing of its $1,466,000,000 term loan B-1 due March 24, 2021 and its $494 million term loan B-2 due June 10, 2022, a market source said.

The repriced term loans are talked at Libor plus 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will reprice the existing term loan B-1 and B-2 debt down from Libor plus 250 bps with a 0.75% Libor floor.

SBA Senior Finance is a subsidiary of SBA Communications Corp., a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

Realogy plans call

Realogy set a lender call for Monday to launch a repricing of its roughly $1.1 billion term loan B due 2022 that is talked at Libor plus 250 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

JPMorgan is leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

With the repricing, the company intends to increase the borrowing capacity of its revolver to $1 billion from $815 million, a news release added.

Closing is expected within the next two weeks.

Realogy is a Madison, N.J.-based real estate company.

Penn National refinancing

Penn National Gaming scheduled a meeting for Monday to launch a $500 million seven-year term loan B, according to sources.

The company also plans on getting a $700 million five-year revolver and a $300 million five-year term loan A as part of its proposed $1.5 billion senior secured credit facility, a company news release said.

Bank of America Merrill Lynch and JPMorgan are leading the deal that will be used to help refinance existing credit facilities, fund related transaction fees and expenses and for general corporate purposes.

Additionally, the company expects to complete a new unsecured debt financing transaction to fund a cash tender offer for any and all of its $300 million 5 7/8% senior notes due 2021, and any remaining proceeds from the unsecured debt financing and cash on hand will be used for the refinancing of the credit facilities as well.

Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations.

Tibco repricing

Tibco Software set a lender call for 1 p.m. ET on Monday to launch a repricing of its roughly $1.6 billion term loan B from Libor plus 550 bps with a 1% Libor floor, according to a market source.

Jefferies Finance LLC and KKR Capital Markets are leading the deal.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

FleetCor readies deal

FleetCor Technologies scheduled a lender call for Monday to launch a repricing of its $245 million term loan B, a market source remarked.

Bank of America Merrill Lynch is leading the deal that will reprice the term loan B from Libor plus 300 bps with a 0.75% Libor floor.

FleetCor is a Norcross, Ga.-based provider of specialized payment products and services including fleet cards, food cards and corporate lodging discount cards for businesses.

Summit joins calendar

Summit Materials plans to hold a lender call at 11 a.m. ET on Monday to launch a repricing of its term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor and a par issue price, according to a market source.

Bank of America Merrill Lynch is leading the deal.

The company got the term loan B in 2015, and at that time it was sized at $650 million and priced at Libor plus 325 bps with a 1% Libor floor and a step-down to Libor plus 300 bps based on leverage.

Summit Materials is a Denver-based construction materials company.

American Bath details

American Bath Group’s fungible incremental first-lien term loan due Sept. 30, 2023 that will launch with a lender call at 1 p.m. ET on Monday is sized at $225 million, and the company also plans on getting a $15 million incremental revolver and a $65 million privately placed incremental second-lien term loan, a market source said.

Pricing on the incremental first-lien term loan matches existing first-lien term loan pricing at Libor plus 575 bps with a 1% Libor floor, and the debt has 101 soft call protection through Sept. 30, 2017, the source continued. Original issue discount talk on the incremental loan is still to be determined.

Commitments are due at 5 p.m. ET on Jan. 17, the source added.

Credit Suisse, RBC Capital Markets and Jefferies are leading the debt that will be used with new equity to fund the acquisition of Maax Bath & Spas.

American Bath Group is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers. Maax is a Lachine, Quebec-based manufacturer of bathtubs, showers and shower doors.

Global Eagle closes

In other news Global Eagle Entertainment Inc. closed on its $585 million senior secured credit facility (B1/BB-), comprised of an $85 million five-year revolver priced at Libor plus 600 bps and a $500 million six-year first-lien term loan, a news release said.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at a discount of 97. The debt is non-callable for one year. It then has hard call protection of 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $460 million, pricing was raised from Libor plus 525 bps, the discount widened from talk of 98 to 99, the call protection was changed from a 101 soft call for six months, the maturity was shortened from seven years, the 18-month MFN sunset was removed, and a number of other documentation changes were made. Also, a $125 million eight-year second-lien term loan was removed from the planned capital structure.

Citigroup Global Markets Inc., Macquarie, Bank of America Merrill Lynch, Barclays, Citizens Bank and TD Securities (USA) LLC led the deal that was used to refinance existing debt.

Global Eagle is a Marina Del Rey, Calif.-based provider of satellite-based connectivity and media.

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