Web.com, Encino, Quorum, Ultra Clean, PDC, American Airlines, AkzoNobel price talk emerges

By Sara Rosenberg

New York, Sept. 5 – On the new deal front on Wednesday, Web.com Group Inc., Encino Acquisition Partners Holdings LLC, Quorum Business Solutions (QBS Parent Inc.), Ultra Clean Holdings Inc., PDC Brands (Parfums Holding Co. Inc.) and American Airlines Inc. all released guidance with launch.

Also, AkzoNobel Specialty Chemicals (Starfruit) began circulating price talk on its term loans in preparation for its upcoming bank meetings, and 8th Avenue Food & Provisions Inc., Brookfield Infrastructure and Gopher Resource LLC joined the near-term primary calendar.

Web.com launches

Web.com held its lender presentation on Wednesday and announced price talk on its $1.08 billion seven-year covenant-light first-lien term loan B (B2/B+) and $420 million eight-year covenant-light second-lien term loan (Caa2/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.6 billion of senior secured credit facilities also include a $100 million five-year revolver (B2/B+).

Commitments are due on Sept. 17, the source added.

Web.com lead banks

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are leading Web.com’s credit facilities.

The new loans will be used with equity and cash on hand to fund the buyout of the company by Siris Capital Group LLC for $25.00 per share in cash, or about $2 billion, and to refinance existing debt.

Closing is expected in the fourth quarter, subject to approval by Web.com shareholders, regulatory approvals and customary conditions.

Web.com is a Jacksonville, Fla.-based provider of a full range of internet services and online marketing solutions for small and medium sized businesses.

Encino comes to market

Encino Acquisition Partners released talk of Libor plus 625 bps with a 1% Libor floor and an original issue discount of 99 on its $550 million seven-year senior secured second-lien term loan (//BB-) that launched with a morning bank meeting, a market source said.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Commitments are due on Sept. 19, the source added.

Jefferies LLC, Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of the Ohio Utica Assets from Chesapeake Energy Corp. for about $2 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including the receipt of third-party consents.

Encino Acquisition is a Houston-based oil and gas company. The company was formed in 2017 through a partnership with Canada Pension Plan Investment Board.

Quorum reveals talk

Quorum Business Solutions held its bank meeting in the afternoon, and hours before the event took place, talk on its $230 million seven-year covenant-light first-lien term loan (B2/B/BB-) emerged at Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at 5 p.m. ET on Sept. 19.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC from Silver Lake.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Quorum is a provider of finance, operations and accounting software to energy companies.

Ultra Clean floats terms

Ultra Clean Holdings revealed talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $350 million seven-year term loan B with its afternoon bank meeting, a market source remarked.

The company’s $415 million of credit facilities (B1/B+) also include a $65 million five-year revolver.

Commitments are due at 5 p.m. ET on Sept. 19, the source added.

Barclays is leading the deal that will be used to support the acquisition of Quantum Global Technologies LLC for $342 million in cash, which was completed in late August.

Pro forma total debt to adjusted EBITDA is 2.2 times and pro forma net debt to adjusted EBITDA is 1.5 times.

Ultra Clean is a Hayward, Calif.-based developer and supplier of critical subsystems for the semiconductor and display capital equipment industries. Quantum Global is a Quakertown, Pa.-based provider of ultra-high purity outsourced parts cleaning, process tool part recoating, surface treatment and analytical services to the semiconductor and related industries.

PDC details surface

PDC Brands launched on its afternoon call a $559 million term loan B due June 30, 2024 talked at Libor plus 400 bps with a step-down to Libor plus 375 bps at 6.1 times total net leverage, a 0% 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 Sept. 13, the source added.

Nomura is the left lead on the deal that will be used to reprice an existing term loan B due June 30, 2024 down from Libor plus 475 bps with a 1% Libor floor.

PDC is a Stamford, Conn.-based beauty and personal care products company.

American Airlines holds call

American Airlines hosted a lender call during the session to launch a fungible $300 million add-on term loan (//BB+) due 2021 talked with an original issue discount of 99.5, according to a market source.

The add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due at noon ET on Sept. 12, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes. Citigroup Global Markets Inc. is the administrative agent.

American Airlines is a Fort Worth, Texas-based airline company.

AkzoNobel Specialty guidance

AkzoNobel Specialty Chemicals disclosed price talk on its €3,325,000,000 equivalent U.S. dollar seven-year term loan B (B1/B+/BB-) and €1.79 billion seven-year term loan B (//BB-) ahead of its New York bank meeting at 10 a.m. ET on Thursday and London bank meeting on Monday, a market source remarked.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps and talk on the euro term loan is Euribor plus 425 bps, the source continued. Both loans are talked with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Commitments are due on Sept. 20, the source added.

Barclays, HSBC and J.P. Morgan Securities LLC are the joint global coordinators on the loans and sole physical on the U.S. piece. Credit Suisse, Deutsche Bank, Morgan Stanley, RBC, Citigroup, Nomura, UBS, BNP Paribas, Credit Agricole, Mizuho, MUFG, RBS, Societe Generale and Bank of China are the bookrunners. ABN Amro, Commerzbank, Rabobank, SEB, Bank of Ireland, Standard Chartered, ING and AIB are the mandated lead arrangers. JPMorgan is the administrative agent.

Proceeds will be used to help fund the buyout of AkzoNobel Specialty Chemicals, a specialty chemicals company, by the Carlyle Group and GIC from AkzoNobel for an enterprise value of €10.1 billion.

Closing is expected before year-end, subject to regulatory approvals and other customary conditions.

8th Avenue Food on deck

In more primary news, 8th Avenue Food set a bank meeting for 2 p.m. ET on Tuesday to launch $625 million of term loans, according to a market source.

The debt is split between a $500 million seven-year first-lien term loan and a $125 million eight-year second-lien term loan, the source said.

Barclays, Goldman Sachs Bank USA, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to support the capitalization of the company as a standalone entity from Post Holdings Inc., with a new investment from Thomas H. Lee Partners.

Post is anticipated to receive total proceeds of $875 million and will retain 60.5% of the common equity in the company. Thomas H. Lee will receive 8th Avenue preferred stock with an 11% PIK-equivalent, cumulative, quarterly compounding dividend and 39.5% of the common equity in the company.

Closing is expected in October, subject to regulatory approvals and other customary conditions.

8th Avenue Food is a manufacturer of nut butters, healthy snacks, granola and pasta.

Brookfield joins calendar

Brookfield Infrastructure scheduled a bank meeting for noon ET in New York on Friday to launch a $1 billion term loan B, a market source remarked.

Citigroup Global Markets Inc. is leading the deal that will be used to help fund the acquisition of Enbridge Inc.’s Western Canadian midstream business for a cash purchase price of C$4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals.

Brookfield Infrastructure is an owner and operator of infrastructure networks which facilitate the movement and storage of energy, water, freight, passengers and data.

Gopher readies loan

Gopher Resource will hold a lender call at 10:30 a.m. ET on Thursday to launch a $35 million incremental first-lien term loan due March 2025 that is talked with an original issue discount of 99.75, a market source said.

Like the existing loan, the incremental term loan is priced at Libor plus 325 bps with a 25 bps step-down at first-lien net leverage of less than 4.5 times and a 1% Libor floor.

Commitments are due at noon ET on Sept. 12, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution.

Gopher is a recycler of lead-acid batteries.

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