MGM, Magnolia, PSAV, Inmar, WKI, Accuride break; AdvancePierre dips; Nord Anglia gains

By Sara Rosenberg

New York, April 25 – MGM Growth Properties Operating Partnership LP set the spread on its term loan at the high end of guidance, and Magnolia finalized pricing on its term loan B at the middle of talk and tightened the original issue discount, and then both of these deals freed up for trading on Tuesday.

Also, PSAV (AVSC Holding Corp.) firmed pricing on its term loan at the low side of talk, made some documentation changes and then broke too, and deals from Inmar Inc., World Kitchen (WKI Holding Co. Inc.) and Accuride Corp. hit the secondary market as well.

In more trading news, AdvancePierre Foods Holdings Inc.’s term loan was lower with news that the company is being acquired by Tyson Foods Inc., and Nord Anglia Education Inc.’s term loan was stronger after news that the company is being bought out by a consortium of investors.

Back in the primary market, Kepro (Keystone Acquisition Corp.), Dayco Products LLC and BayMark Health Services Inc. released price talk with launch, Consolidated Container Co., Digicel International Finance Ltd., Transcendia and Equian LLC joined this week’s new issue calendar, and CPG International is getting ready to launch an amendment proposal.

MGM updated, trades

MGM Growth Properties finalized pricing on its $1.83 billion term loan at Libor plus 225 basis points, the wide end of the Libor plus 200 bps to 225 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Late in the day, the term loan made its way into the secondary market, and levels were quoted at par 1/8 bid, par 3/8 offered, a trader said.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor.

MGM Growth Properties is a Las Vegas-based real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.

Magnolia revised, breaks

Magnolia firmed the spread on its $350 million seven-year term loan B at Libor plus 525 bps, the midpoint of the Libor plus 500 bps to 550 bps talk, and changed the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $390 million in credit facilities (B1/B) also include a $40 million revolver.

With final terms in place, the term loan B freed to trade in the afternoon at par 3/8 bid, par 5/8 offered and then it moved up to par ½ bid, a trader added.

Macquarie Capital (USA) Inc. is leading the deal that will be used with equity to fund the buyout of Harris Corp.’s government IT services business by Veritas Capital Fund Management LLC for $690 million.

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

Magnolia is a Herndon, Va.-based provider of communications, engineering and IT solutions for intelligence, defense and federal civilian customers.

PSAV tweaked, tops OID

PSAV finalized pricing on its $980 million seven-year senior secured term loan B (B2/B) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

In addition, the available amount builder basket was reduced to the greater of $50 million and 22.5% of EBITDA from the greater of $60 million and 30% of EBITDA, and the leverage governor on the available amount grower when used for restricted payments was reduced to five times first-lien net leverage from 5.25 times first-lien net leverage, the source said.

The B loan began trading after terms firmed up, and levels were seen at 99¾ bid, par ½ offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance the existing capital structure.

Closing is expected on Thursday.

PSAV is a Long Beach, Calif.-based event technology provider.

Inmar starts trading

Inmar’s credit facilities freed to trade as well, with the $580 million seven-year covenant-light first-lien term loan (B1/B) quoted at 99¼ bid, 99¾ offered and the $175 million eight-year covenant-light second-lien term loan (Caa1/CCC+) quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 350 bps with a 25 bps leverage-based step-down and a 1% Libor floor. The debt was sold at an original issue discount of 99 and includes 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

On Monday, pricing on the first-lien term loan was trimmed from Libor plus 375 bps and the step-down was added, and the spread on the second-lien term loan was reduced from Libor plus 825 bps.

The company’s $830 million in credit facilities also include a $75 million revolver (B1/B).

Inmar being acquired

Proceeds from Inmar’s credit facilities will be used to help fund its buyout by Omers Private Equity and management from ABRY Partners.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the debt.

Closing on the buyout is expected this quarter, at which time ABRY will remain a significant shareholder in the company.

Inmar is a Winston-Salem, N.C.-based provider of technology-enabled promotion and inventory, logistics and settlement services.

World Kitchen frees up

World Kitchen’s $200 million senior secured seven-year first-lien term loan B (B1/BB-) also hit the secondary market, with levels quoted at par bid, a market source said.

Pricing on the term loan B is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Friday, pricing on the term loan was reduced from talk of Libor plus 450 bps to 475 bps and the discount was changed from 99.

Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Cornell Capital LLC.

Closing is expected on May 1.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of housewares.

Accuride hits secondary

Accuride’s fungible $50 million add-on term loan B began trading too, with levels seen at par 5/8 bid, 101 5/8 offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 700 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5 after tightening on Monday from 99. The debt has 101 soft call protection through November.

RBC Capital Markets is leading the deal that will be used with additional sponsor equity to fund an acquisition.

Accuride is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

AdvancePierre softens

Also in trading, AdvancePierre Foods’ term loan fell to par 1/8 bid, par 7/8 offered from 101 1/8 bid, 101 3/8 offered in reaction to news that the company is being purchased by Tyson Foods for $40.25 per share in cash, according to a trader.

The transaction has an enterprise value of about $4.2 billion, including $3.2 billion in equity value and $1.1 billion in assumed debt.

To back the acquisition, Tyson, an investment-grade company, has received a commitment for bridge financing from Morgan Stanley Senior Funding Inc.

Closing is expected in Tyson’s fiscal 2017 third quarter, subject to the tender of a majority of AdvancePierre’s shares and regulatory approvals.

AdvancePierre is a Cincinnati-based producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks to distribution outlets. Tyson is a Springdale, Ark.-based meat and food production company.

Nord Anglia rises

Nord Anglia Education’s term loan strengthened to par ¼ bid, par ¾ offered from par bid, par ½ offered following an announcement that the company is being acquired by a consortium led by Canada Pension Plan Investment Board and Baring Private Equity Asia, a market source said.

The company is being bought for $32.50 per share in cash in a transaction valued at about $4.3 billion, including repayment of debt.

Funds for the buyout are expected to come from new debt financing and equity.

Closing is expected by Aug. 31, subject to shareholder approval and other customary conditions. There is no financing condition to the closing.

Nord Anglia is a Hong Kong-based premium schools organization.

Kepro releases guidance

Returning to the primary market, Kepro held its bank meeting on Tuesday, and with the event, price talk on its $205 million seven-year first-lien term loan (B) and $100 million eight-year second-lien term loan (CCC+) was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $330 million in credit facilities also include a $25 million revolver (B).

Commitments are due at noon ET on May 4, the source added.

RBC Capital Markets and Capital One are leading the deal that will be used to help fund the buyout of the company.

Kepro is a Harrisburg, Pa.-based quality improvement and care management organization.

Dayco discloses talk

Dayco Products came out with talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $475 million seven-year senior secured covenant-light term loan (B2/B+) that launched with a lender meeting during the session, a market source said.

Commitments are due at noon ET on May 3, the source added.

Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to repay existing term loan and revolver borrowings.

Dayco is a Troy, Mich.-based manufacturer of highly engineered engine management systems.

BayMark launches

BayMark Health Services released price talk on its $213 million in credit facilities with its bank meeting, according to a market source.

Talk on the $20 million five-year revolver is Libor plus 450 bps to 475 bps with a 25 bps step-down at secured net leverage of less than 4 times, a 50 bps unused fee with a step-down to 37.5 bps when secured net leverage is less than 3.5 times, and an original issue discount of 99, talk on the $133 million six-year term loan B is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the $60 million delayed-draw six-year term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and a 100 bps undrawn fee, the source said.

Commitments are due on May 9.

Capital One is the left lead on the deal that will be used to refinance existing debt, and the delayed-draw term loan will be used for acquisition financing.

BayMark, a Webster Capital portfolio company, is a Lewisville, Texas-based behavioral health provider specializing in opioid treatment services.

Consolidated Container on deck

Consolidated Container set a bank meeting for Thursday to launch $730 million in credit facilities, according to a market source.

The facilities consist of a $125 million ABL revolver and a $605 million senior secured first-lien term loan B, the source said.

Barclays is the left lead on the deal that will be used to help fund the acquisition of the company by Loews Corp. from Bain Capital Private Equity for about $1.2 billion, subject to customary purchase price adjustments.

Consolidated Container will be a part of a newly-created segment called Loews Packaging Group.

Closing is expected this quarter, subject to customary conditions.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer.

Digicel joins calendar

Digicel International Finance emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $635 million term loan B, a market source said.

Citigroup Global Markets Inc. is leading the deal.

Digicel is a Hamilton, Bermuda-based provider of wireless communication services in the Caribbean.

Transcendia readies deal

Transcendia scheduled a bank meeting for 1 p.m. ET in New York on Thursday to launch $455 million in credit facilities, a market source remarked.

The facilities consist of a $50 million revolver, a $280 million first-lien term loan and a $125 million second-lien term loan, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to help fund the buyout of the company.

Transcendia is a Franklin Park, Ill.-based provider of custom engineered specialty films materials across a broad range of end-markets.

Equian coming soon

Equian will host a lenders’ presentation at 11 a.m. ET on Thursday to launch $355 million in senior secured credit facilities, according to a market source.

The facilities include a $30 million revolver and a $325 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing debt and to fund general corporate purposes.

Equian is an Indianapolis-based payment integrity platform.

CPG plans amendment

CPG International set a lender call for 1 p.m. ET on Wednesday to discuss an amendment transaction, a market source said.

Jefferies Finance LLC is leading the deal.

Currently, the company has $603.1 million outstanding under its existing term loan, the source added.

CPG is a Skokie, Ill.-based manufacturer of highly engineered low-maintenance building materials.

Northstar allocates

In other news, Northstar Travel Group’s fungible $83 million add-on first-lien term loan allocated on Tuesday, according to a market source.

Pricing on the add-on loan is Libor plus 625 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing, and it was sold at an original issue discount of 99. All of the first-lien term loan debt is getting 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $58 million.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition and, due to the recent upsizing, to pay a dividend.

Northstar Travel is a Secaucus, N.J.-based provider of business-to-business information, content, events, data, research, custom content and software dedicated to the global travel and meeting industries.

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