BI-LO, Trinseo, Power Products free up; Southwire, Broadstreet Partners revise deals

By Sara Rosenberg

New York, May 15 – BI-LO LLC’s term loan B emerged in the secondary market on Tuesday with levels quoted above its original issue discount, and deals from Trinseo SA and Power Products LLC freed to trade as well.

Also, Southwire Co. LLC finalized pricing on its term loan at the high end of guidance and added a step-down, and BroadStreet Partners Inc. lifted the spread on its add-on term loan B and repricing of its existing term loan B.

In addition, Plantronics Inc., Wyndham Worldwide Corp. (Wyndham Destinations Inc.), 24 Hour Fitness Worldwide Inc., Apple Leisure Group, MRC Global Inc. and Integrated Device Technology Inc. disclosed price talk with launch.

Furthermore, VC GB Holdings Inc., Zebra Technologies Corp., Navico, Reece Group and Visteon Corp. joined this week’s primary calendar.

BI-LO hits secondary

BI-LO’s $475 million six-year term loan B began trading on Tuesday, with levels quoted at 96½ bid, 97½ offered, a trader remarked.

Pricing on the term loan B is Libor plus 800 basis points with a 1% Libor floor and it was sold at an original issue discount of 96. The debt has 101 hard call protection for two years.

During syndication, the term loan B was downsized from $525 million, pricing was lifted from Libor plus 750 bps, the discount was revised from 99, the accordion was changed to reduce the free and clear basket to $100 million from $150 million and the unlimited ratio to 2 first-lien net leverage from up to closing first-lien net leverage, the excess cash flow sweep was increased to 75% from 50% beginning in 2018, and the ability to designate unrestricted subsidiaries was eliminated.

The company is also getting a $600 million ABL facility of which $550 million is a revolver priced at Libor plus 125 bps and $50 million is a FILO term loan priced at Libor plus 525 bps.

Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to fund the company’s exit from Chapter 11, which is expected by the end of this month, and to refinance existing debt.

BI-LO is a Jacksonville, Fla.-based supermarket chain.

Trinseo tops par

Trinseo’s $697 million covenant-light term loan B due September 2024 (Ba2/BB+) surfaced in the secondary market too, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

Closing is expected during the week of May 28.

Trinseo is a Berwyn, Pa.-based materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber.

Power Products frees up

Power Products’ fungible $90 million add-on covenant-light first-lien term loan B (B) also broke, with levels seen at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the add-on term loan is Libor plus 400 bps with a 1% Libor floor, in line with pricing on the existing $267 million term loan, and the debt has 101 soft call protection through July 6, 2018. The add-on loan was issued at par.

On Monday, the issue price on the add-on term loan was tightened from 99.75.

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

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power and transportation.

Southwire tweaked

Moving to the primary market, Southwire set pricing on its $500 million senior secured term loan (BB+) due 2025 at Libor plus 200 bps, the high end of the Libor plus 175 bps to 200 bps talk, and added a step-down to Libor plus 175 bps based on leverage, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

KKR Capital Markets is the left lead on the deal that will be used to refinance existing debt.

Southwire is a Carrollton, Ga.-based manufacturer of wire and cable used in the distribution and transmission of electricity.

BroadStreet ups spread

BroadStreet Partners raised pricing on its fungible $15 million add-on term loan B (B2) and repricing of its existing $579 million term loan B (B2) to Libor plus 325 bps from Libor plus 300 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Commitments are due at 5 p.m. ET on Wednesday, extended from noon ET on Wednesday, the source said.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and ING are leading the deal.

The add-on term loan will be used to repay revolver borrowings and the repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

BroadStreet is a Columbus, Ohio-based insurance broker.

Plantronics sets guidance

Plantronics held its bank meeting on Tuesday and announced price talk on its $1,275,000,000 seven-year covenant-light term loan B at Libor plus 225 bps to 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Also, the company said in an 8-K filed with the Securities and Exchange Commission that the term loan has a ticking fee of half the spread from days 46 to 90 and the full spread plus Libor thereafter.

The company’s $1,375,000,000 of credit facilities (Ba1/BB) also include a $100 million revolver.

Commitments are due at noon ET on May 31.

Wells Fargo Securities LLC is leading the deal.

Plantronics buying Polycom

Proceeds from Plantronics’ credit facilities and cash on hand will be used to fund the acquisition of Polycom, to refinance existing debt and for general corporate purposes.

Polycom is being purchased for $2 billion enterprise value consisting of an estimated $690 million of net debt and an estimated $948 million in cash and 6.352 million Plantronics shares.

Pro forma secured leverage is 2.4 times and total leverage is 3.4 times, based on pro forma LTM adjusted EBITDA of $524 million.

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

Plantronics is a Santa Cruz, Calif.-based audio communications company. Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

Wyndham Worldwide talk

Wyndham Worldwide came out with talk of Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $300 million seven-year covenant-light term loan (Ba2/BB-/BB+) that launched with a morning bank meeting, a market source said.

Commitments are due at noon ET on May 24, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Bank of Nova Scotia, MUFG and U.S. Bank are leading the deal that will be used to repay a portion of the company’s revolver borrowings.

Wyndham is a Parsippany, N.J.-based vacation ownership and exchange company.

24 Hour Fitness launches

24 Hour Fitness launched at its morning presentation its $850 million seven-year covenant-light first-lien term loan B at talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $970 million of senior secured credit facilities (Ba3/B+) also include a $120 million five-year revolver.

Commitments are due at noon ET on May 24, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, RBC Capital Markets and Citizens Capital Markets are leading the deal that will be used to refinance existing debt, to backstop, cash collateralize and/or replace existing letters of credit, and to pay fees and expenses.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

Apple Leisure holds call

Apple Leisure surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $950 million covenant-light first-lien term loan due March 2024 talked at 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, according to a market source.

Commitments are due at 5 p.m. ET on May 23, the source said.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund an acquisition.

Apple Leisure is a Philadelphia-based hospitality company.

MRC comes to market

MRC Global held a lender call, launching a $399 million covenant-light term loan B due September 2024 at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

Integrated Device repricing

Integrated Device Technology held a lender call during the session to launch a $198 million term loan B due April 2024 talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, according to a market source.

Commitments are due on May 22, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Integrated Device is a San Jose, Calif.-based developer of mixed-signal semiconductor solutions.

VC GB readies loan

In more primary happenings, VC GB Holdings set a lender call for 11 a.m. ET on Wednesday to launch a $595 million seven-year covenant-light first-lien term loan (B) that includes 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 23, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing first-and second-lien term loans.

VC GB is a decorative lighting company.

Zebra on deck

Zebra Technologies scheduled a lender call for 10 a.m. ET on Wednesday to launch a $1,125,000,000 senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B due 2021.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Navico coming soon

Navico set a lender call for 11 a.m. ET on Thursday to launch a $254 million senior secured term loan, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan.

Navico is an Egersund, Norway-based manufacturer of marine electronics.

Reece schedules meeting

Reece Group plans to hold a bank meeting on Wednesday to launch a $1.14 billion seven-year term loan B that is talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on May 31, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Morsco from Advent International.

Reece is an Australia-based provider of plumbing, HVAC and waterworks products. Morsco is a Fort Worth, Texas-based distributor of commercial and residential plumbing, waterworks and HVAC supplies.

Visteon joins calendar

Visteon will hold a lender call at 10 a.m. ET on Wednesday to launch a new loan deal to current and prospective lenders, according to a market source.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Sumitomo Mitsui Banking Corp. are leading the transaction.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

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