Multi Packaging breaks; AutoTrader OID emerges; World Kitchen sets fees; U.S. Gas floats talk

By Sara Rosenberg

New York, May 13 - Multi Packaging Solutions Inc.'s credit facility allocated and freed up for trading during Thursday's session, with the term loan quoted above its original issue discount price in light volume.

Moving to the primary market, AutoTrader.com came out with guidance on the original issue discount for its term loan B as the transaction was presented to lenders, and World Kitchen LLC revealed upfront fees on its bank deal.

Also in the primary, U.S. Gas & Electric Inc. began circulating price talk on its second-lien term loan as the deal is gearing up to launch next week, and SkillSoft plc's credit facility has been met with strong demand from investors, resulting in a large oversubscription on the deal.

Multi Packaging frees to trade

Multi Packaging Solutions' $182.5 million six-year term loan hit the secondary market on Thursday, with levels quoted at par bid, 101 offered, according to a market source.

Pricing on the term loan is Libor plus 500 basis points with a 2% Libor floor, and it was sold at an original issue discount of 99.

During syndication, pricing on the term loan was increased first from Libor plus 425 bps and then from Libor plus 475 bps with a step-down to Libor plus 450 bps based on leverage, the Libor floor was lifted from 1.75%, and the size was reduced from $215 million.

Also during syndication, amortization on the term loan was increased to basically 5% a year from the typical 1% a year, the accordion was downsized to $75 million from $100 million, and the leverage test that needs to be met in order to use the incremental facility was tightened.

Multi Packaging getting revolver

Multi Packaging's $212.5 million credit facility (B2/B) also includes a $30 million five-year revolver that priced in line with original talk at Libor plus 400 bps with an upfront fee of 99.

Wells Fargo, UBS and Barclays are the joint lead arrangers on the deal.

Proceeds will be used for a dividend recapitalization.

Multi Packaging Solutions is a New York-based entertainment packaging company.

AutoTrader.com sets OID talk

Switching to the primary, AutoTrader.com held a bank meeting on Thursday to kick off syndication on its proposed credit facility, and in connection with the launch, original issue discount guidance on the term loan B was announced, according to a market source.

The $325 million term loan B is being offered to lenders at a discount of 99, the source said. As was previously reported, price talk on the tranche is Libor plus 350 basis points with a 1.5% Libor floor.

Goldman Sachs and Wells Fargo are the lead banks on the $525 million credit facility (Ba3/BB+), which also includes a $100 million revolver and a $100 million term loan A.

Price talk on the revolver and the term loan A is Libor plus 350 bps with no Libor floor.

AutoTrader.com selling minority interest

Proceeds from AutoTrader.com's credit facility will be used to help fund Providence Equity Partners' acquisition of a 25% interest in the company.

Providence is buying the minority stake in the company from Cox Enterprises Inc.

Following completion of the transaction, Cox will maintain majority ownership and operating control of AutoTrader.com.

Closing is expected to take place as soon as all necessary approvals have been obtained.

AutoTrader.com is an Atlanta-based internet automotive shopping and advertising site.

World Kitchen releases upfront fees

Another deal to launch on Thursday was World Kitchen's $220 million credit facility, and at the meeting, lenders were given details on upfront fees for the deal, according to a market source.

All tranches are being offered with a 75 bps upfront fee for a commitment of $15 million and a 100 bps upfront fee for a commitment of $25 million, the source said.

Tranching on the deal is comprised of a $90 million revolver, a $60 million term loan, $20 million Canadian dollar equivalent term loan and a $50 million capital expenditures facility.

The facility is being marketed to banks, and those banks are expected to commit pro rata across the board, the source added.

World Kitchen price talk

As was already disclosed, World Kitchen's entire credit facility is being talked at Libor plus 425 bps with a 1.5% Libor floor.

The revolver has a 50 bps commitment fee and the capital expenditures facility has a 100 bps commitment fee.

BMO Capital Markets is the lead bank on the deal that will be used to refinance existing debt and fund capital expenditures.

Total leverage at close will be 2.4 times.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

U.S. Gas guidance surfaces

Price talk on U.S. Gas & Electric's proposed $125 million second-lien term loan started making its way around the market as the company is getting ready to launch the deal with a bank meeting in New York on Tuesday, according to sources.

The term loan is being guided at Libor plus 750 bps to 850 bps with a 2% Libor floor and an original issue discount of 98, sources said.

Macquarie Capital is the lead arranger and bookrunner on the deal that will be used to refinance existing debt and back the acquisition of a similar company.

U.S. Gas & Electric, an MVC Capital portfolio company, is a provider of energy supply to commercial and residential consumers.

SkillSoft well received

SkillSoft's $325 million six-year term loan has been met with a lot of attention since launching on May 4, and by Thursday morning, the tranche was already three times oversubscribed, according to a market source.

Price talk on the term loan is Libor plus 475 bps with a 1.75% Libor floor and an original issue discount of 981/2.

The company's $365 million senior secured credit facility (Ba3/BB) also includes a $40 million five-year revolver that is talked at Libor plus 450 bps.

Morgan Stanley and Barclays are the lead banks on the deal.

SkillSoft being acquired

Proceeds from SkillSoft's credit facility will be used to help fund the buyout of the company by an investor group, which is comprised of Berkshire Partners LLC, Advent International Corp. and Bain Capital Partners LLC.

The investor group is purchasing the company for $11.25 in cash per share. The fully diluted equity value of the transaction is $1.2 billion.

Other financing will come from $310 million of eight-year senior unsecured notes and equity.

The buyout will be effected by means of a scheme of arrangement under Irish law.

SkillSoft is a Dublin, Ireland-based provider of on-demand e-learning and performance support services for global enterprises, government, education and small- to medium-sized businesses.

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