Avolon, Tamko, Twin River, BGIS, Charter NEX, Midcoast free up; Wells, GlobalTranz revised

By Sara Rosenberg

New York, May 3 – Avolon set the spread on its term loan at the wide end of guidance and the issue price at the tight side of talk, and Tamko Building Products Inc. lowered pricing on its term loan B, added a step-down and tightened the original issue discount, and then both companies’ debt began trading on Friday.

Also, Twin River Management Group Inc. reduced the size of its term loan B before breaking for trading, and deals from BGIS (Brookfield Global Integrated Solutions), Charter NEX US Inc. and AL Midcoast Holdings LLC hit the secondary market too.

In more happenings, Wells Enterprises Inc. modified the original issue discount on its add-on term loan, and GlobalTranz Enterprises Inc. set pricing on its term loan debt at the high end of talk and widened the issue price.

Furthermore, Alliant Holdings Intermediate LLC moved up the commitment deadline for its incremental term loan B, and FirstLight Fiber (Flight Bidco Inc.) released price talk on its incremental term loans with launch, and Globalfoundries and BioScrip/Option Care Enterprises Inc. joined the near-term primary calendar.

Avolon updated, trades

Avolon finalized pricing on its $3,381,768,173 term loan B-3 (Baa2/BBB-) due Jan. 15, 2025 at Libor plus 175 basis points, the high end of the Libor plus 150 bps to 175 bps talk, and set the original issue discount at 99.875, the tight end of the 99.75 to 99.875 guidance, a market source remarked.

The 0.75% Libor floor and 101 soft call protection for six months on the term loan B-3 were unchanged.

Recommitments/consents were due at 3 p.m. ET on Friday, and by late day the loan was trading with levels quoted at par bid, 100 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays, Credit Agricole, BNP Paribas Securities Corp., SunTrust Robinson Humphrey Inc., Fifth Third, Mizuho, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Societe Generale, Natixis and ING are leading the deal that will be used to reprice an existing term loan B-3 down from Libor plus 200 bps with a 0.75% Libor floor.

Closing is expected on Thursday.

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

Tamko reworked, frees up

Tamko Building Products flexed pricing on its $600 million seven-year term loan B (B2/BB-) to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 300 bps when first-lien net leverage is 3.5 times and moved the original issue discount to 99.5 from 99, a market source said.

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

Recommitments were due at noon ET on Friday and the term loan emerged in the secondary market later in the day, with levels quoted at 100¼ bid, 100¾ offered, a trader added.

J.P. Morgan Securities is leading the deal that will be used to refinance existing debt and fund a redemption of equity interests.

Carlyle Global Partners is becoming a minority investor in the company.

Tamko is a Joplin, Mo.-based manufacturer of residential roofing products, decking and railing products, waterproofing, cements and coatings.

Twin River downsizes, breaks

Twin River scaled back its term loan B to $300 million from $350 million and left pricing at Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Previously in syndication, pricing on the term loan was reduced from Libor plus 300 bps, and the discount was revised from 99.

The company’s now $550 million of credit facilities also include a $250 million revolver.

On Friday, the term loan broke for trading and levels were seen at par bid, 100½ offered, another source added.

Citizens Bank and Credit Suisse Securities (USA) LLC are leading the credit facilities that will be used with $400 million of senior notes, upsized from $350 million with the term loan downsizing, to refinance existing debt and for general corporate purposes.

Twin River is a Lincoln, R.I.-based owner and operator of casino resorts.

BGIS starts trading

BGIS’ $455 million seven-year senior secured covenant-lite first-lien term loan (B1/B) freed to trade as well, with levels quoted at par bid, 100¾ offered, according to a market source.

Pricing on the term loan is Libor plus 375 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, pricing on the term loan was lowered from talk in the range of Libor plus 400 bps to 425 bps, and the discount was tightened from 99.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding, BMO Capital Markets, TD Securities (USA) LLC and MUFG are leading the debt that will be used to help fund the buyout of the company by CCMP Capital Advisors LP from Brookfield Business Partners for about $1 billion.

Closing is expected during the week of May 27, subject to customary conditions.

BGIS is an integrated facilities management company.

Charter NEX frees up

Charter NEX’s non-fungible $675 million incremental first-lien term loan due May 16, 2024 began trading too, with levels seen at 99¾ bid, 100¼ offered, a market source said.

Pricing on the incremental term loan is Libor plus 350 bps with a step-down at 4.57 times first-lien net leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the incremental term loan was upsized from $660 million as privately placed notes were downsized to $35 million from $50 million, pricing was cut from Libor plus 375 bps and the discount was changed from 99.

The company is also getting a $25 million incremental revolver due May 16, 2022.

Jefferies LLC, Nomura and UBS Investment Bank are leading the loan deal (B2/B) that will be used with the notes to fund the merger of Charter NEX and Next Generation Films.

Closing is expected during the week of May 13.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets. Leonard Green and Oak Hill are the sponsors.

Midcoast hits secondary

AL Midcoast Holdings’ fungible $50 million incremental first-lien term loan due August 2025 also broke, with levels seen at 100¼ bid, 100¾ offered, a market source remarked.

The incremental term loan is priced at Libor plus 550 bps with a 0% Libor floor, in line with the existing first-lien term loan, and was issued at par.

On Thursday, the issue price on the incremental term loan was modified from 99.75.

Credit Suisse Securities (USA) is leading the deal that will be used to refinance revolver borrowings.

Midcoast is a provider of natural gas and natural gas liquids services.

Wells Enterprises tweaked

Back in the primary market, Wells Enterprises changed the original issue discount on its fungible $100 million add-on covenant-lite term loan (B1/BB) due 2025 to 99.75 from talk in the range of 99 to 99.5, according to a market source.

As before, the add-on term loan is priced at Libor plus 275 bps with a 0% Libor floor, and the new debt, along with the company’s existing roughly $173 million term loan, will get 101 soft call protection for six months.

Commitments remained due at 5 p.m. ET on Tuesday, the source said.

BMO Capital Markets is leading the deal that will be used to fund the acquisition of Fieldbrook Foods from Arbor Investments.

Wells Enterprises is a Le Mars, Iowa-based owned ice cream and frozen treat manufacturer. Fieldbrook Foods is a Dunkirk, N.Y.-based ice cream producer.

GlobalTranz revised

GlobalTranz Enterprises firmed pricing on its $310 million seven-year first-lien term loan and $80 million delayed-draw seven-year first-lien term loan at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, and adjusted the original issue discount to 98 from 99, a market source said.

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

J.P. Morgan Securities is leading the $390 million of term loans (B2/B-) that will be used to help fund the buyout of the company by Providence Equity Partners LLC from Jordan Co. LP.

GlobalTranz is a Scottsdale, Ariz.-based technology-driven third-party logistics solutions provider.

Alliant moves deadline

Alliant Holdings accelerated the commitment deadline for its $505 million incremental senior secured covenant-lite term loan B due May 2025 to noon ET on Tuesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the incremental term loan is Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Morgan Stanley Senior Funding is the left lead on the deal that will be used to fund a distribution, repay outstanding revolver borrowings, fund general corporate purposes and pay related fees and expenses.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

FirstLight holds call

FirstLight Fiber hosted a lender call on Friday to launch a $65 million incremental first-lien term loan due July 2025 talked with an original issue discount of 98.6 and a $10 million incremental second-lien term loan due July 2026 talked with a discount of 98.3, a market source said.

The incremental first-lien term loan is priced at Libor plus 350 bps with a 0% Libor floor, and the incremental second-lien term loan is priced at Libor plus 750 bps with a 0% Libor floor.

Commitments are due on May 10, the source added.

UBS Investment Bank is leading the $75 million of incremental term loans that will be used to fund an acquisition.

FirstLight is an Albany, N.Y.-based fiber-optic bandwidth infrastructure services provider.

Globalfoundries on deck

Globalfoundries set a lender presentation for 10:30 a.m. ET on Tuesday to launch a $750 million term loan B, according to a market source.

Morgan Stanley Senior Funding, MUFG and First Abu Dhabi Bank USA are leading the deal that will be used to refinance existing debt and pay related fees and expenses.

Globalfoundries is a full-service semiconductor foundry.

BioScrip/Option coming soon

BioScrip/Option Care Enterprises scheduled a bank meeting for Tuesday to launch its previously announced $925 million seven-year covenant-lite first-lien term loan, a market source remarked.

Bank of America Merrill Lynch is the lead arranger and administrative agent on the debt.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million five-year asset-based revolver.

Proceeds will be used to support the merger of BioScrip and Option Care, under which BioScrip will issue new shares to Option Care’s shareholder, which is owned by investment funds affiliated with Madison Dearborn Partners LLC and Walgreens Boots Alliance Inc., in an all-stock transaction. Upon completion of the transaction, Madison Dearborn funds and Walgreens will beneficially own about 80% of the combined publicly traded company on a fully diluted basis, with current BioScrip shareholders holding the remainder.

Closing is expected in the second half of this year, subject to customary conditions, including regulatory approvals and approval by BioScrip shareholders.

BioScrip and Option Care are providers of home and alternate treatment site infusion therapy services.

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