TMS frees up; Warner Music, Utz tweak deals; Cole-Parmer, Ultimate Kronos, Sotera set talk

By Sara Rosenberg

New York, Jan. 12 – TMS International Corp.’s incremental term loan B made its way into the secondary market on Tuesday, with the debt bid above its original issue discount.

Meanwhile, in the primary market, Warner Music Group (WMG Acquisition Corp.) reduced pricing on its first-lien term loan B and tightened the issue price, and Utz Brands Inc. lowered the spread on its term loan B and modified the original issue discount guidance.

Also, Cole-Parmer Instrument Co. LLC (CPI HoldCo LLC), Ultimate Kronos Group (UKG Inc.) and Sotera Health Co. released price talk with launch, and HUB International Ltd. and System One Holdings LLC joined this week’s new issue calendar.

TMS breaks

TMS International’s non-fungible $150 million incremental term loan B due 2024 (B1/BB-) began trading on Thursday, with levels quoted at 99¾ bid, a market source remarked.

Pricing on the term loan is Libor plus 275 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, the discount on the term loan was revised from talk in the range of 97 to 98.

J.P. Morgan Securities LLC is leading the deal that will repay a bridge loan used for the acquisition of the Stein Cos.

TMS is a Pennsylvania-based provider of outsourced industrial services to steel mills.

Warner revises pricing

Moving to the primary market, Warner Music Group cut pricing on its $820 million seven-year covenant-lite first-lien term loan (Ba3/BB) to Libor plus 212.5 bps from talk in the range of Libor plus 225 bps to 237.5 bps and changed the original issue discount to 99.875 from talk in the range of 99.625 to 99.75, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Tuesday, moved up from noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan.

Warner Music is a New York-based music entertainment company.

Utz changes emerge

Utz Brands trimmed pricing on its $720 million seven-year term loan B (B1/B) to Libor plus 300 bps from Libor plus 350 bps and adjusted the original issue discount talk to a range of 99.5 to 99.75 from a range of 99.25 to 99.5, a market source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Tuesday, the source added.

BofA Securities Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help refinance an existing term loan B and a $490 million senior secured bridge loan that funded the company’s $480 million purchase of Truco Enterprises, a Dallas-based seller of tortilla chips, salsa and queso, from Insignia Capital Group.

Utz is a Hanover, Pa.-based manufacturer of branded salty snacks.

Cole-Parmer launches

Cole-Parmer held its lender call on Tuesday morning and, shortly before the event began, price talk emerged on its fungible $125 million incremental first-lien term loan due Nov. 4, 2026 and plans to reprice its existing roughly $868 million first-lien term loan due Nov. 4, 2026 were announced, according to a market source.

The first-lien term loan debt is talked at Libor plus 400 bps with a 25 bps leveraged-based step-down, a 0% Libor floor and 101 soft call protection for six months, the source said. The incremental term loan is talked with an original issue discount of 99.5 to 99.75 and the repricing is offered at par.

Commitments are due at noon ET on Friday, the source added.

The company is also getting a $65 million privately placed incremental second-lien term loan.

Jefferies LLC is leading the deal.

The incremental term loans will be used to fund an acquisition and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 0% Libor floor.

Cole-Parmer is a Vernon Hills, Ill.-based manufacturer of peristaltic, temperature monitoring, and environmental precision equipment/consumables used in research and production applications.

Ultimate Kronos repricing

Ultimate Kronos held a lender call at 2 p.m. ET to launch a $2.945 billion covenant-lite first-lien term loan due May 2026 talked at Libor plus 325 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0.75% Libor floor.

Ultimate Kronos is a provider of best-of-breed human capital management solutions with headquarters in Lowell, Mass. and Weston, Fla.

Sotera proposed terms

Sotera Health launched on its morning call its $1.768 billion term loan B due December 2026 at talk of Libor plus 300 bps to 325 bps with a 0.5% Libor floor and an original issue discount of 99.5 to par, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Friday.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Sotera is a Broadview Heights, Ohio-based provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the health care industry.

HUB readies deal

HUB International surfaced with plans to hold a lender call at 10 a.m. ET on Wednesday to launch a $1,506,670,277 covenant-lite first-lien term loan B due April 2025 talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice existing 2019 incremental term loans down from Libor plus 400 bps with a 1% Libor floor and pay related fees and expenses.

HUB is a Chicago-based insurance brokerage.

System One on deck

System One set a lender call for 1 p.m. ET on Wednesday to launch $325 million of credit facilities (B2), according to a market source.

The facilities consist of a $45 million revolver and a $280 million seven-year covenant-lite term loan B, the source said.

Truist Securities is the left lead on the deal that will be used to help fund the buyout of the company by Oaktree Capital Management LP.

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

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

© 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.