Linden Cogeneration, Alorica, Dynegy, World Kitchen break; Patterson Medical tweaks deal

By Sara Rosenberg

New York, June 22 – Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC) saw its credit facility emerge in the secondary market on Wednesday, with its term loan B quoted above par, and Alorica Inc. freed up too.

Also, Dynegy Inc. increased pricing on its term loan, and World Kitchen LLC (WKI Holding Co. Inc.) sweetened the spread, issue price and call protection on its term loan B, and then both deals broke for trading as well.

In other news, Patterson Medical widened price talk on its incremental term loan B and updated original issue discount guidance, Ravago Holdings America came out with price talk on its term loan, and Tranzact set a bank meeting for its buyout financing deal and released details on structure and price talk.

Linden hits secondary

Linden Cogeneration’s credit facility broke for trading too, with the $1.05 billion seven-year first-lien term loan B quoted at 100 1/8 bid, 100 5/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $1,175,000,000 senior secured credit facility also includes a $125 million five-year revolver priced at Libor plus 425 bps.

Recently, the term loan B was upsized from $1 billion and pricing on both tranches was set at the tight end of the Libor plus 425 bps to 450 bps talk.

Linden recapitalizing

Proceeds from Linden’s credit facility will be used to recapitalize the borrower in connection with Ares EIF’s acquisition, to refinance Linden’s existing debt and to fund a debt service reserve account.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., MUFG, GE, Investec and ICBC are leading the deal.

Closing is expected in late June.

Linden is the owner of a natural gas-fired combined-cycle cogeneration project, located in Linden, N.J.

Alorica starts trading

Alorica’s bank debt freed up for trading as well, with its $350 million six-year first-lien term loan B quoted at 99 7/8 bid, 100 3/8 offered, a trader said.

Pricing on the term loan B is Libor plus 475 bps with a step-down to Libor plus 450 bps at 2.5 times gross leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.25 and has 101 soft call protection for one year.

The company is also getting a $275 million add-on term loan A.

During syndication, the term loan B was downsized from $450 million as the add-on term loan A was upsized from $175 million, and pricing on the term loan B was reduced from Libor plus 500 bps, the step-down was added and the discount was tightened from 99.

Alorica buying Expert

Proceeds from Alorica’s bank debt (B1/BB) will be used to fund the acquisition of Expert Global Solutions from One Equity Partners.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Bank of the West, BNP Paribas Securities Corp. and Wells Fargo Securities LLC are leading the debt.

Closing on the acquisition is expected in the third quarter, subject to customary conditions, including regulatory requirements.

Alorica is an Irvine, Calif.-based provider of services, including customer relationship management and back office support. Expert Global Solutions is a Plano, Texas-based customer service organization.

Dynegy flexes, trades

Dynegy raised pricing on its $2 billion seven-year senior secured incremental first-lien covenant-light term loan (Ba3/BB) to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Recommitments were due by 2 p.m. ET on Wednesday and then the loan began trading late in the day, with levels quoted at 99¼ bid, 99¾ offered, a trader said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets, MUFG, BNP Paribas Securities Corp., Credit Agricole and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the acquisition of Engie’s U.S. fossil fuel portfolio.

The Houston-based energy company will also use proceeds from a tangible equity units offering, Energy Capital Partners’ purchase of $150 million of the company’s common stock and cash-on-hand for the acquisition.

Closing on the acquisition is expected in the fourth quarter, but the term loan is anticipated to close into escrow next week.

World Kitchen reworked

World Kitchen lifted pricing on its $275 million seven-year senior secured term loan B (B2/B) to Libor plus 525 bps from Libor plus 500 bps, moved the original issue discount to 95 from 99, extended the 101 soft call protection to one year from six months and eliminated the 12 month MFN sunset, setting the 50 bps MFN for the life of the deal, a source remarked.

Also, the incremental allowance was revised to $50 million plus an unlimited amount subject to pro forma compliance with a first-lien net leverage ratio of 3.5 times, from $70 million plus an unlimited amount subject to pro forma compliance with first-lien net leverage of 3.5 times.

The term loan B still has a 1% Libor floor.

World Kitchen breaks

With final terms in place, World Kitchen’s term loan B emerged in the secondary market, and levels were quoted at 95 bid, 97 offered, a trader said.

Citigroup Global Markets Inc. and BMO Capital Markets Corp. are leading the deal that will be used to help fund the acquisition of the company by GP Investments.

The anticipated initial enterprise value of World Kitchen is about $566 million at $10 per share, implying a post-closing equity value of $330 million.

Closing is expected in late July.

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

Patterson Medical revised

In more happenings, Patterson Medical changed price talk on its $330 million incremental covenant-light term loan B due August 2022 to Libor plus 450 bps to 475 bps from Libor plus 425 bps and adjusted original issue discount talk to 99 from 99 to 99.5 previously, according to a market source.

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

The spread on the company’s existing term loan will be modified to match the spread on the incremental term loan to create a fungible tranche, the source said.

Commitments are due at noon ET on Thursday.

Patterson Medical leads

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading Patterson Medical’s term loan.

Proceeds will be used to help fund the acquisition of Performance Health from Gridiron Capital.

Closing is expected this summer, subject to customary conditions.

Patterson Medical, a Madison Dearborn Partners portfolio company, is a Warrenville, Ill.-based distributor of rehabilitation, sports medicine and assistive patient products. Performance Health is an Akron, Ohio-based manufacturer and supplier of consumer branded health, wellness and self-care products.

Ravago discloses talk

Ravago held its bank meeting on Wednesday, launching its $325 million term loan (B2) with talk of Libor plus 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 July 6, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Ravago is a provider of distribution, resale, compounding and recycling service for plastic and elastomeric raw materials.

Tranzact on deck

Tranzact set a bank meeting for 10 a.m. ET on Thursday to launch a $225 million senior secured credit facility that consists of a $40 million revolver and a $185 million seven-year first-lien term loan, a market source said.

Talk on the term loan is Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, the source continued.

SunTrust Robinson Humphrey Inc., ING Capital LLC, Citizens Bank and Natixis are leading the deal that will be used with a privately placed second-lien term loan to help fund the buyout of the company by Clayton, Dubilier & Rice.

First-lien leverage is 4.2 times, and total leverage is 5.9 times, the source added.

Tranzact is a Fort Lee, N.J.-based provider of direct-to-consumer sales and marketing solutions for insurance carriers.

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