Exopack breaks; Dole, Excelitas revised; KIK discloses OIDs; Town Sports, Norcraft set talk

By Sara Rosenberg

New York, Oct. 24 - Exopack Holding Corp.'s term loan B freed up for trading on Thursday with the U.S. tranche quoted above its original issue discount.

Over in the primary, Dole Food Co. Inc. upsized its term loan B and ABL revolver and tightened the spread and original issue discount on its B loan tranche, and Excelitas Technologies Corp. set the spread on its first-lien term loan at the low end of talk while revising the discount price.

Furthermore, KIK Custom Products Inc. released original issue discount guidance on its add-on term loans with launch, talk surfaced on deals from Town Sports International LLC and Norcraft Cos. Inc., and Wilsonart LLC emerged with loan plans.

Exopack starts trading

Exopack's term loan B hit the secondary market on Thursday, with the $435 million U.S. tranche seen at par ¼ bid, 101 offered, according to a market source.

Pricing on the U.S. term loan B is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The company's roughly $675 million of new 51/2-year term loan B debt (B) also includes a €175 million tranche priced at Euribor plus 475 bps with a 1% floor and sold at discount of 991/2. This tranche has 101 soft call protection for one year as well.

During syndication, the total term loan B amount was trimmed from $750 million as the company's bond offering was upsized to $325 million from $250 million, and after that, the U.S. portion was downsized from $475 million and the euro portion was upsized from €150 million.

Additionally, pricing on the U.S. piece was cut from talk of Libor plus 450 bps to 475 bps, and the discounts on both tranches were tightened from 99. Also, talk on the euro loan had been 50 bps wide of the U.S. loan all along, but based on the original U.S. talk, the euro piece would have been in the Euribor plus 500 bps to 525 bps range, meaning the euro term loan was essentially flexed with U.S. loan flex.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal for the Chicago-based manufacturer of plastic packaging products that will be used with the notes to refinance existing debt.

BWIC announced

Also in trading, a $36 million cash loan Bid-Wanted-In-Competition surfaced, with bids due at 11 a.m. ET on Friday, a market source said.

Some of the names included in the portfolio are Affinia Group Inc., BJ's Wholesale Club Inc., LIN Television Corp., Spectrum Brands Inc., Univision Communications Inc. and West Corp.

There are about 27 issuers in the portfolio, the source added.

Dole tweaks deal

Moving to the primary, Dole Foods lifted its five-year covenant-light term loan B (B2/B-) to $750 million from a revised amount of $725 million and an initial amount of $675 million, lowered pricing to Libor plus 350 bps from Libor plus 375 bps and then revised the original issue discount to 99½ from 99, according to a market source.

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

Earlier in syndication, the maturity on the term loan B was shortened from seven years.

With the term loan B upsizing, the five-year ABL revolver was increased to $175 million from $150 million, the source said. Pricing on this tranche is Libor plus 175 bps.

Recommitments were due at the end of the day on Thursday and allocations are targeted to go out on Friday.

Dole lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Scotia Capital are leading the now $925 million senior secured credit facility.

Proceeds, along with $300 million of senior notes and equity will be used to fund the company's buyout by chairman and chief executive officer David H. Murdock for $13.50 in cash per share, or about $1.6 billion.

The notes were upsized on Thursday from a revised amount of $275 million but downsized from an initial amount of $325 million, the source added.

Funds from the credit facility and notes upsizings will be used to add cash to the balance sheet.

Closing is expected to take place during the fourth quarter.

Dole is a Westlake Village, Calif.-based fruit and vegetable company.

Excelitas updates pricing

Excelitas Technologies finalized pricing on its $620 million seven-year first-lien term loan (B1/B) at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps talk, and moved the original issue discount to 99 from 981/2, according to a market source.

The first-lien term loan, which includes a $40 million delayed-draw tranche, still has a 1% Libor floor and 101 soft call protection for one year.

The company's proposed $945 million credit facility also provides for a $40 million five-year revolver (B1/B), and a $285 million 71/2-year second-lien term loan that is spoken for by KKR.

Commitments were due on Thursday. Closing is expected to occur on Oct. 31, the source said.

UBS Securities LLC, Credit Suisse Securities (USA) LLC and MCS Capital Markets are leading the deal that will help fund the acquisition of Qioptiq, a Luxembourg-based designer and manufacturer of high performance photonic products and solutions.

Excelitas is a Waltham, Mass.-based provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

KIK OID talk

Also in the primary, KIK Custom Products held its bank meeting in the afternoon, and shortly before the event kicked off, original issue discount talk of 97½ to 98 emerged on both the fungible $225 million add-on first-lien term loan (B2/B-) due May 23, 2019 and the fungible $50 million add-on second-lien term loan (Caa2/CCC) due Nov. 23, 2019, according to a market source.

As previously reported, pricing on the add-on first-lien term loan is Libor plus 425 bps with a 1.25% Libor floor, and pricing on the add-on second-lien loan is Libor plus 825 bps with a 1.25% Libor floor, both in line with existing first-and second-lien loan pricing.

The add-on first-lien term loan has 101 soft call protection through May 2014, and the add-on second-lien term loan has call protection of 103 through May 2014, then 102 for a year and 101 for a year.

In addition, the add-on loans have a ticking fee of half the spread from days 31 to 75 and the full spread thereafter, the source said.

KIK buying BioLab

Proceeds from KIK Custom Products' $275 million in add-on first-and second-lien term loans will be used with $75 million of new cash equity to fund the $315 million acquisition of BioLab, which is Chemtura Corp.'s consumer products business.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal.

Commitments for the term loans are due on Nov. 7, and closing on the acquisition is targeted for Dec. 31, subject to customary conditions and regulatory approvals.

Pro forma leverage is 3.8 times through the first-lien debt and 5.5 times total.

KIK is a Toronto-based contract and private label manufacturer of consumer, institutional and industrial products.

Town Sports guidance

Town Sports launched with a call its $325 million seven-year term loan and released talk at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company's $370 million senior secured credit facility (Ba3/B+) also includes a $45 million five-year revolver.

Commitments are due at noon ET on Nov. 1, the source added.

Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are leading the deal that will refinance an existing $50 million revolver due May 11, 2016 and a roughly $315.7 million term loan due May 11, 2018.

Closing is expected to take place in mid-November.

Town Sports is a New York-based owner and operator of fitness clubs.

Norcraft holds meeting

Norcraft hosted its bank meeting on Thursday, launching its $150 million seven-year covenant-light term loan (B2) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company's $175 million credit facility also includes a $25 million asset-based revolver.

By comparison, filings with the Securities and Exchange Commission had the revolver sized at up to $35 million and the term loan sized at $160 million.

The filings had expected revolver pricing at Libor plus 175 bps to 225 bps based on excess availability, and a commitment fee of 25 bps to 50 bps based on usage. Term loan pricing in the filings matches the official price talk.

Leads, RBC Capital Markets and KeyBanc Capital Markets, are seeking commitments by Nov. 7.

Proceeds from the credit facility and an initial public offering of common stock will be used to redeem 10½% senior secured second-lien notes due 2015 on or shortly after Dec. 15, 2013 and purchase at least a nominal interest in Norcraft Cos. LLC following the closing of the offering.

Norcraft is an Eagan, Minn.-based manufacturer of kitchen and bathroom cabinetry.

Wilsonart on deck

Wilsonart scheduled a call for Monday to launch a $160 million add-on term loan due October 2019, according to sources.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal that will be used to fund the acquisition of Durcon Inc., a Taylor, Texas-based manufacturer of laboratory-grade work surfaces.

Closing is expected in the fourth quarter.

Wilsonart is a Temple, Texas-based manufacturer and distributor of high pressure laminates and other engineered surfaces used in furniture, office and retail space, countertops, worktops and other applications.

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