West breaks; Camping World, NCL, CPA Global updated; Duff & Phelps modifies deadline

By Sara Rosenberg

New York, Oct. 3 – West Corp. (Olympus Merger Sub Inc.) increased the size of its term loan in connection with the downsizing of its bond offering, and then the loan freed to trade on Tuesday above its original issue discount price.

In more happenings, Camping World finalized pricing on its term loan debt at the low end of guidance, NCL Corp. lowered the spread on its term loan, CPA Global (Capri Acquisitions Bidco Ltd.) outlined ticking fees on its term loan debt and accelerated the commitment deadline, and Duff & Phelps Corp. moved up the commitment deadline on its term loan B.

Also, Beacon Roofing Supply Inc., Energy Transfer Equity LP, Atlantic Power Corp. and Navicure Inc./Zirmed Inc. disclosed price talk with launch, and Vantage Specialty Chemicals Inc., United Road Services Inc., Catalent Pharma Solutions Inc. and Sirius Computer Solutions Inc. joined this week’s primary calendar.

West upsizes

West raised its seven-year covenant-light first-lien term loan to $2.9 billion from $2.7 billion in reaction to its senior unsecured notes offering being scaled back to $1.15 billion from $1.35 billion, according to market sources.

The term loan is priced at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, and has 101 soft call protection for one year.

On Monday, pricing on the term loan flexed from talk of Libor plus 325 bps to 350 bps, the floor was increased from 0%, the discount widened from 99.5 and the call protection was extended from six months.

The company’s now $3.25 billion of senior secured credit facilities (Ba3/B/BB+) also include a $350 million revolver.

Commitments were due at noon ET on Tuesday.

West hits secondary

With final terms plans, West’s credit facilities freed to trade and the term loan was quoted at 99 3/8 bid, 99 7/8 offered, another source added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used with up to $1.3 billion in equity to fund the buyout of the company by Apollo Global Management LLC for $23.50 per share in cash. The transaction has an enterprise value of about $5.1 billion, including net debt.

Closing is expected in the second half of the year, subject to receipt of regulatory approvals, West stockholder approval and other customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

Camping World firms spread

Returning to the primary market, Camping World set pricing on its $195 million add-on senior secured term loan due Nov. 8, 2023 and repricing of its existing $736 million senior secured term loan B due Nov. 8, 2023 at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, a market source said.

The term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months, the add-on term loan still has an original issue discount of 99.75 and the repricing still has a par issue price.

Commitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday, the source added.

Goldman Sachs Bank USA is leading the deal (B1/BB+).

The add-on term loan will be used for the purchase of inventory and capital expenditures for Gander Outdoors and for future acquisitions, and the repricing will take the existing term loan down from Libor plus 375 bps with a 0.75% Libor floor.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

NCL flexes lower

NCL cut pricing on its $375 million term loan (Ba2/BBB-) to Libor plus 175 bps from talk of Libor plus 200 bps to 225 bps, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, according to a market source.

Commitments were due on Tuesday.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

NCL is a Miami-based cruise line operator.

CPA reveals ticking fee

CPA Global disclosed that its $830 million seven-year first-lien term loan and €250 million seven-year first-lien term loan will have ticking fees of half the spread after 45 days and the full spread after 75 days, a market source remarked.

The Intellectual Property management and technology services company also moved up the commitment deadline on the debt to noon ET on Thursday from Oct. 10, the source added.

Talk on the term loans is Libor/Euribor plus 325 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s credit facilities also include an £80 million revolver.

Jefferies LLC and Nomura are leading the deal, with Jefferies left on the U.S. loan and Nomura left on the euro loan.

Proceeds will be used with €410 million in pre-placed eight-year senior unsecured floating-rate notes to help fund the buyout of the company by Leonard Green Partners LP and Partners Group Administration Services AG from Cinven, which is subject to customary regulatory approval.

Duff & Phelps accelerated

Duff & Phelps revised the commitment deadline on its $850 million seven-year senior secured first-lien term loan B to noon ET on Thursday from Friday, a market source said.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $950 million of credit facilities (B2/B) also include a $100 million five-year revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing bank debt and to fund a dividend.

Duff & Phelps is a New York-based independent adviser with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues.

Beacon Roofing guidance

Beacon Roofing Supply held its bank meeting on Tuesday, launching its $970 million seven-year senior secured covenant-light term loan B (B1/BB+) at talk of Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60, the full spread from days 61 to 90 and Libor plus the full spread thereafter, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 11, the source said.

The company’s $2.27 billion senior secured deal also includes a $1.3 billion asset-based revolver.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are leading the debt, with Citi left on the term loan B and Wells Fargo left on the revolver.

Proceeds will be used with $1.3 billion of senior unsecured notes and a commitment from Clayton, Dubilier & Rice to provide $400 million in perpetual convertible preferred equity to fund the $2,625,000,000 acquisition of Allied Building Products Corp. and refinance an existing $440 million term loan B.

Closing is targeted for Jan. 2, subject to regulatory approvals and customary conditions.

Beacon Roofing is a Herndon, Va.-based distributor of roofing materials and complementary building products. Allied Building is an East Rutherford, N.J.-based distributor of exterior and interior building products.

Energy Transfer launches

Energy Transfer Equity emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a repricing of its $2.2 billion senior secured term loan B due Feb. 2, 2024 that is talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with no Libor floor.

With the repricing, the company is issuing $1 billion in senior secured notes, upsized from $750 million, to repay a portion of the existing $2.2 billion term loan B and for general partnership purposes.

Energy Transfer is a Dallas-based midstream oil and gas company.

Atlantic Power sets talk

Atlantic Power came out with talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $562,727,000 first-lien senior secured term loan B (Ba2/BB-) due April 2023 that launched with a morning lender call, according to a market source.

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

Goldman Sachs Bank USA, Bank of America Merrill Lynch, MUFG and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Atlantic Power is a Dedham, Mass.-based owner, developer and operator of a diversified fleet of 23 power generation projects totaling 1,500 MW of net generating capacity across nine states in the United States and two Canadian provinces.

Navicure terms emerge

Navicure disclosed price talk on its $435 million seven-year covenant-light first-lien term loan (B) and $185 million eight-year second-lien term loan (CCC) in connection with its bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $670 million of credit facilities also include a $50 million five-year revolver (B).

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

Antares Capital is leading the deal that will be used to help fund the combination of Navicure, an existing Bain portfolio company, with Zirmed.

Atlanta-based Navicure and Louisville, Ky.-based Zirmed are providers of integrated cloud-based medical claims management and patient payment solutions.

Vantage coming soon

Vantage Specialty Chemicals will host a lenders’ presentation at 10:30 a.m. ET on Thursday to launch $710 million of senior secured credit facilities, a market source said.

The facilities consist of a $75 million revolver, a $465 million first-lien term loan and a $170 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital LLC from the Jordan Co. LP.

Closing is expected this month.

Vantage is a Chicago-based manufacturer and distributor of specialty chemicals.

United Road readies deal

United Road Services set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $320 million of credit facilities, a market source remarked.

The facilities consist of a $60 million ABL revolver, and a $260 million seven-year covenant-light first-lien term loan that has a 1% Libor floor and 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on Oct. 18.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by The Carlyle Group from Charlesbank Capital Partners LLC.

United Road is a Romulus, Mich.-based provider of vehicle transport and logistics.

Catalent joins calendar

Catalent Pharma Solutions scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a repricing and extension of its existing $1,251,500,000 term loan B and €312,442,500 term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products.

Sirius Computer on deck

Sirius Computer Solutions will hold a bank meeting at 10 a.m. ET on Wednesday to launch a fungible $337 million incremental first-lien term loan due Oct. 30, 2022 talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The spread and floor on the incremental term loan matches existing first-lien term loan pricing.

Commitments are due on Oct. 13, the source said.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Forsythe Technology Inc.

Closing is expected in the fourth quarter, subject to regulatory approval.

Sirius is a San Antonio-based provider of data center-focused technology integration services. Forsythe is a Skokie, Ill.-based enterprise IT solutions provider.

MW Industries closes

In other news, the buyout of MW Industries by American Securities from Genstar has been completed, according to a news release.

To help fund the transaction, MW Industries got $575 million of credit facilities, split between a $70 million five-year revolver (B2/B), a $385 million seven-year first-lien term loan (B2/B) and a $120 million eight-year second-lien term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps if corporate ratings are B2/B and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

MW lead banks

RBC Capital Markets LLC, Citigroup Global Markets Inc., Jefferies LLC, Citizens Bank and Antares Capital led MW Industries’ credit facilities.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 375 bps to 400 bps talk and the step-down was added, the pricing on the second-lien term loan was set at the wide end of the Libor plus 775 bps to 800 bps talk.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

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