Air Medical, Penn Engineering free up; UFC revises deal; primary calendar continues to build

By Sara Rosenberg

New York, Aug. 2 – Air Medical Group Holdings Inc. increased the size of its term loan B-1, firmed pricing at the low end of talk and modified the original issue discount, and then the debt made its way into the secondary market on Tuesday, and Penn Engineering & Manufacturing Corp.’s tack-on loan broke as well.

In more happenings, UFC Holdings LLC upsized its first-lien term loan, downsized its second-lien term loan and tightened spreads and issue prices on both tranches, and Hilton Worldwide Finance LLC, Omnova Solutions Inc., California Pizza Kitchen Inc. and Beaver-Visitec (TPG Bedrock Acquisition Inc.) released price talk on their loan deals.

Furthermore, CDW Corp., Headwaters Inc., Ascend Performance Materials LLC, WaveDivision Holdings LLC, Oasis Outsourcing Holdings Inc. and Science Applications International Corp. joined this week’s new issue calendar.

Air Medical reworked, breaks

Air Medical raised its senior secured incremental first-lien covenant-light term loan B-1 due April 28, 2022 to $190 million from $175 million, finalized pricing at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, and changed the original issue discount to 98.5 from 98, a market source said.

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

Commitments were due by noon ET on Tuesday, and the loan broke for trading later in the session with levels quoted at 99 bid, 99½ offered, a trader added.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the loan that will be used with cash on hand to fund the acquisition of California Shock Trauma Air Rescue (Calstar), fund a one-time pro rata share repurchase among equity holders, and pay related fees and expenses.

As a result of the $15 million term loan upsizing, the share repurchase amount was increased.

Closing is expected on Aug. 12.

Lewisville, Texas-based Air Medical and McClellan, Calif.-based Calstar are air ambulance service providers.

Penn Engineering tops OID

Penn Engineering & Manufacturing’s fungible $100 million U.S. dollar tack-on first-lien term loan due August 2021 began trading too, with levels seen at par bid, 100½ offered, a source remarked.

The tack-on term loan is priced at Libor plus 300 bps with a 1% Libor floor, in line with the existing $216 million U.S. dollar first-lien term loan due August 2021, and was issued at an original issue discount of 99.75 after tightening on Monday from initial talk of 99.5. The debt has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, and 101 soft call protection for six months, which the existing loan will get as well.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Heyco Products Inc.

Penn Engineering is a Danboro, Pa.-based manufacturer of highly engineered specialty fasteners. Heyco is a designer and manufacturer of molded wire protection products and stamped electrical components.

BWIC surfaces

Also in trading, a roughly $245 million Bid Wanted In Competition was announced, with bids due at 11 a.m. ET on Wednesday, a trader said.

Some of the names in the portfolio are Builders FirstSource Inc., Caraustar Industries Inc., inVentiv Health Inc., Riverbed Technology Corp., Surgery Center Holdings LLC, U.S. Renal Care Inc. and William Morris Endeavor Entertainment LLC.

There are about 48 issuers in the portfolio, the trader added.

UFC modifies loans

Back in the primary market, UFC increased its seven-year senior secured covenant-light first-lien term loan B to $1,375,000,000 from $1.3 billion, lowered pricing to Libor plus 400 bps from talk of Libor plus 450 bps to 475 bps and moved the original issue discount to 99.5 from 99, while keeping the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

In addition, the company reduced its eight-year second-lien term loan to $425 million from $500 million, trimmed the spread to Libor plus 775 bps from Libor plus 850 bps and tightened the discount to 99 from 98, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The second-lien term loan was first added to the transaction in late July to replace plans for a $500 million unsecured notes offering.

Commitments were due at 3 p.m. ET on Tuesday, the source added.

UFC lead banks

Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, Citigroup Global Markets Inc. and UBS Investment Bank are leading UFC’s debt, with Goldman the left lead on the first-lien term loan B and Deutsche Bank the left lead on the second-lien term loan.

Proceeds will be used to help fund the acquisition of the company by WME | IMG, and, as part of the transaction, Silver Lake Partners and KKR will join WME | IMG as new strategic investors, along with MSD Capital LP and MSD Partners LP, which will provide preferred equity financing.

Closing is subject to customary conditions.

UFC is a Las Vegas-based sports brand and pay-per-view event provider. WME | IMG is an entertainment, sports and fashion company.

Hilton holds call

Hilton Worldwide held its lender call on Tuesday, launching its $3,225,000,000 covenant-light term loan B-2 (Ba1/BBB) due October 2023 with talk of Libor plus 250 bps to 275 bps with no floor, a 25 bps extension fee/original issue discount and 101 soft call protection for six months, according to a market source.

Commitments are due on Aug. 9, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to amend and extend by three years a portion of the company’s existing $4,225,000,000 term loan B.

Hilton is a McLean, Va.-based hospitality company.

Omnova reveals talk

Omnova Solutions came out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million term loan B (B1/B+) that launched with a morning bank meeting, according to a market source.

Commitments are due on Aug. 16, the source said.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets and Jefferies Finance LLC are leading the deal that will be used to refinance an existing term loan and senior notes.

Omnova is a Beachwood, Ohio-based innovator of performance-enhancing chemistries and surfaces for commercial, industrial and residential end uses.

California Pizza guidance

California Pizza Kitchen disclosed price talk on its $290 million six-year first-lien term loan (B2/B) and a $75 million seven-year second-lien term loan (Caa2/CCC) with its bank meeting, a source remarked.

The first-lien term loan is talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 1,000 bps with a 1% Libor floor, a discount of 97 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $395 million credit facility also includes a $30 million revolver (B2/B).

Commitments are due on Aug. 16, the source added.

Jefferies Finance LLC, Antares Capital, Guggenheim, BMO Capital Markets and Rabobank are leading the deal that will be used to refinance existing debt.

California Pizza Kitchen is a casual dining chain and a distributor of frozen food products.

Beaver-Visitec details emerge

Beaver-Visitec held its bank meeting, at which time lenders were presented with a $280 million senior secured credit facility consisting of a $30 million five-year revolver, a $170 million seven-year first-lien term loan and an $80 million eight-year second-lien term loan, according to a market source.

The first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

Commitments are due on Aug. 16, the source said.

UBS Investment Bank, Deutsche Bank Securities Inc., Antares Holdings and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Capital from RoundTable Healthcare Partners, which is expected to close in the third quarter.

Beaver-Visitec is a Waltham, Mass.-based developer, manufacturer and marketer of specialized surgical devices for the ophthalmic marketplace.

CDW coming soon

Also on the primary front, CDW set a lender call for 2 p.m. ET on Wednesday to launch a $1.49 billion seven-year term loan B, a market source remarked.

Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets, MUFG and HSBC Securities (USA) Inc. are leading the deal that will be used to extend the company’s existing $1.49 billion term loan B.

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and healthcare organizations.

Headwaters joins calendar

Headwaters scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $350 million covenant-light add-on term loan B (BB-) due March 2022, according to a market source.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to fund the $240 million acquisition of Krestmark Industries LP and refinance 7.25% senior notes due 2019.

Headwaters is a South Jordan, Utah-based building products manufacturer. Krestmark is a Dallas-based manufacturer of vinyl windows.

Ascend sets launch

Ascend Performance Materials will hold a lender call on Wednesday to launch a $500 million six-year covenant-light term loan, a market source remarked.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to repay ABL revolver borrowings and an existing term loan B.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

WaveDivision readies loan

WaveDivision set a lender call for 11 a.m. ET on Wednesday to launch a fungible $125 million add-on first-lien term loan, a market source said.

Jefferies Finance LLC is leading the deal that will be used for general corporate purposes.

Also on the call, the company will discuss a consent request in connection with the add-on loan, the source added.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Oasis plans incremental loan

Oasis Outsourcing scheduled a lender call for 2 p.m. ET on Wednesday to launch a fungible $75 million incremental first-lien term loan due Dec. 31, 2021 talked Libor plus 475 bps with a 1% Libor floor and an original issue discount that is still to be determined, according to a market source.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of a Tennessee-based Professional Employer Organization for about $33 million, and to pay down a $60 million second-lien term loan.

With the transaction, the company is seeking an amendment for which lenders are being offered a 12.5 bps amendment fee.

Commitments for old and new money, and amendment signatures are due at noon ET on Aug. 11, the source said.

Oasis Outsourcing, a Stone Point Capital owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- & medium-sized businesses.

Science Applications on deck

Science Applications emerged with plans to hold a call at 10 a.m. ET on Wednesday for existing and prospective lenders to launch a new loan deal, according to a market source.

Citigroup Global Markets Inc. is leading the transaction.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets.

© 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.