Platform Specialty, NN break; Calpine, Rhode Island State, Jamul Indian Village launch

By Sara Rosenberg

New York Nov. 9 – Platform Specialty Products Corp.’s term loan debt made its way into the secondary market on Monday, with levels on the U.S. tranche quoted above its original issue discount, and NN Inc. began trading as well.

Meanwhile, in the primary market, Calpine Corp., Rhode Island State Energy Center LP and Jamul Indian Village Development Corp. released price talk with launch, and Swissport Group, Cypress Semiconductor Corp., Star West Generation LLC, West Corp. and Michigan Power LP LLC joined this week’s new issue calendar.

Platform Specialty frees up

Platform Specialty Products’ bank debt began trading on Monday, with the $1,045,000,000 term loan B due June 7, 2020 quoted at 98¼ bid, 98¾ offered, according to a trader.

Pricing on the U.S. term loan B, as well as on a €300 million term loan B due June 7, 2020, is Libor/Euribor plus 450 basis points with a 1% floor, and the debt was sold at an original issue discount of 98. Included in the loans is 101 soft call protection for one year.

Last week, the U.S. term loan was downsized from $1,145,000,000 as the company’s bond offering was upsized to $500 million from $400 million, and pricing on the tranches was lowered from talk of Libor/Euribor plus 475 bps.

Credit Suisse Securities (USA) LLC and Barclays are leading the debt (B2/BB-).

Platform buying Alent

Proceeds from Platform’s term loans and bonds will be used to help fund the acquisition of Alent plc for 503p per share in cash. The transaction also includes a partial share alternative under which eligible Alent shareholders can elect to receive Platform common stock in lieu of part or all of the cash consideration to which they would otherwise be entitled under the transaction.

The transaction is valued at about $2.1 billion, and, including net debt, the total transaction value is around $2.3 billion.

Closing is expected on Dec. 1, subject to customary conditions.

Platform is a Miami-based specialty chemicals company. Alent is a U.K.-based supplier of specialty chemicals and engineered materials used primarily in electronics, automotive and industrial applications.

NN firms at talk, breaks

NN finalized the original issue discount on its fungible $50 million add-on term loan at 98.5, in line with initial talk that was in the 98.5 area, a source said.

Pricing on the add-on loan is Libor plus 475 bps with a 1% Libor floor, which matches existing term loan pricing.

With final terms in place, the add-on loan freed up for trading during the session with the debt bid at 99¼, a trader added.

KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reduce the amount of the company’s 10¼% senior notes.

NN is a Johnson City, Tenn.-based manufacturer and supplier of high precision metal bearing components, industrial plastic and rubber products and precision metal components.

American Commercial steady

Also in trading, American Commercial Lines Inc.’s $1.15 billion five-year first-lien term loan (B3/B) was quoted at 95½ bid, 96½ offered, in line with where the debt broke for trading late Friday, a trader remarked.

Pricing on the loan is Libor plus 875 bps with a 1% Libor floor, and it was sold at an original issue discount of 95. The debt has 101 soft call protection for one year.

During syndication, the first-lien term loan was upsized from $1.1 billion, pricing was increased from talk of Libor plus 600 bps to 625 bps, the discount widened from 98, the call protection was extended from six months, the maturity was shortened from seven years and amortization was set at 5% per annum.

Also during syndication, a $200 million 7.5-year second-lien term loan was dropped from the capital structure. Talk on this tranche had been Libor plus 925 bps with a 1% Libor floor, a discount of 96 to 97 and call protection of 103 in year one, 102 in year two and 101 in year three.

American Commercial leads

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and UBS AG are leading American Commercial’s term loan.

Proceeds will be used to fund the acquisition of AEP River Operations from American Electric Power for about $550 million, and to refinance existing debt.

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

American Commercial is a Jeffersonville, Ind.-based marine transportation service company. AEP River Operations is a Chesterfield, Mo.-based commercial inland barge company.

Calpine holds call

Moving to the primary market, Calpine held a lender call at 2 p.m. ET on Monday to launch a $550 million seven-year senior secured covenant-light term loan B-6 that is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the $500 million acquisition of Granite Ridge Energy Center, a 745MW combined-cycle gas-fired power plant located in Londonderry, N.H., from Granite Ridge Holdings LLC, and for general corporate purposes.

Closing is expected by the first quarter of 2016, subject to customary conditions and regulatory approvals.

With the launch of the new loan, Calpine’s existing term loan B-3 moved in trading to par bid, par 3/8 offered from 100¼ bid, 100¾ offered, and its term B-5 fell to 98 bid, 98½ offered from 98¼ bid, 99 offered, a trader added. The term B-4 was basically unchanged at par bid, 100 3/8 offered, versus par bid, 100½ offered on Friday.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Rhode Island guidance

Rhode Island State Energy Center disclosed talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year on its $325 million seven-year term loan B that launched with a late-morning bank meeting, a market source remarked.

The company’s $375 million senior secured credit facility also includes a $50 million revolver.

Commitments are due on Nov. 23, the source added.

Morgan Stanley Senior Funding Inc. and GE Capital Markets are leading the deal that will be used with equity to fund the $490 million acquisition of Rhode Island State Energy Center by The Carlyle Group from Entergy Corp.

Closing is subject to customary conditions.

Rhode Island State Energy Center is a 583 MW natural-gas fired power plant located in Johnston, R.I.

Jamul details surface

Jamul Indian Village Development held its bank meeting during the session, and with the event structure and price talk emerged on its credit facility, according to a market source.

The $460 million senior secured credit facility (B) consists of a $15 million revolver, a $335 million term loan B and a $110 million delayed-draw term loan.

Talk on the term loan B is Libor plus 800 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, the source said.

Commitments are due on Nov. 20.

Citizens Bank, Fifth Third Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to back the construction of the proposed $360 million Hollywood Casino Jamul-San Diego on Jamul Indian Village’s reservation in Jamul, Calif. The casino is being jointly developed with Penn National Gaming Inc.

Construction on the casino is expected to be completed in July and has so far only been funded with equity.

Swissport readies deal

In more primary news, Swissport set a bank meeting in New York at 10 a.m. ET on Tuesday and one in London at 1:30 p.m. GMT on Wednesday to launch a CHF 1,145,000,000 equivalent six-year covenant-lite term loan B that is talked at Libor/Euribor plus 500 bps to 525 bps with a 1% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

The term B will be split between U.S. dollar and euro tranches, with sizes to be determined, the source said.

J.P. Morgan Securities LLC and Barclays are leading the deal, with JPMorgan left lead on the U.S. tranche and Barclays left lead on the euro tranche and the administrative agent.

Proceeds will be used with an equity contribution from HNA Group Co. Ltd. to fund the CHF 2.73 billion acquisition of Swissport by HNA from PAI Partners SAS and to refinance existing debt.

Closing is expected by year-end, subject to customary regulatory and anti-trust approvals.

Swissport is a Switzerland-based provider of ground and cargo handling services to the aviation industry.

Cypress joins calendar

Cypress Semiconductor scheduled a bank meeting for 12:30 p.m. ET in New York on Tuesday to launch a $400 million seven-year senior secured term loan B talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC and Fifth Third Bank are leading the deal that will be used to refinance existing debt and fund a share buyback.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

Star West on deck

Star West Generation emerged with plans to hold a call at 1:30 p.m. ET on Tuesday to launch a $450 million senior secured term loan B, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing term loans.

Star West is a Houston-based independent power producer.

West plans call

West Corp. set a lender call for 11 a.m. ET on Thursday to launch a $250 million six-year term loan B-11, according to a market source.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan B-9, the source said.

West is an Omaha-based technology-driven communication services provider.

Michigan Power coming soon

Michigan Power scheduled a bank meeting for Thursday to launch a $263 million credit facility, a market source said.

The facility consists of a $47 million revolver and a $216 million seven-year term loan B, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the acquisition of Michigan Power by Rockland Capital LLC from ArcLight Capital Partners LLC.

Michigan Power is the owner of a cogeneration facility located in Ludington, Mich.

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