Reynolds, WireCo, Pinnacle, Zayo, Sterling, Cast & Crew break; Revlon, Printpack reworked

By Sara Rosenberg

New York, July 21 – On the secondary front, deals from Reynolds Group Holdings Inc., WireCo WorldGroup Inc., Pinnacle Foods Finance LLC, Zayo Group LLC, Sterling Talent Solutions and Cast & Crew Payroll LLC all freed up for trading during Thursday’s session.

Moving to the primary market, Revlon Consumer Products Corp. lowered the spread and tightened the original issue discount on its term loan B, and Printpack Inc. increased the size of its term loan B whole finalizing pricing and issue price at the tight end of guidance.

Furthermore, Safway Group Holding LLC and Vantage Specialty Chemicals disclosed price talk on their deals, Diamond Resorts International Inc. came out with timing on the launch of its credit facility, and Inteva Products LLC and Penn Engineering & Manufacturing Corp. emerged with new loan plans.

Reynolds hits secondary

Reynolds Group’s $1,973,000,000 6.5-year term loan broke for trading on Thursday, with levels quoted at 99 7/8 bid, 100 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 325 basis points with a step-down if corporate ratings are B2/B or better and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 and had 101 soft call protection for six months.

The company is also getting a €250 million 6.5-year term loan priced at Euribor plus 375 bps with no floor. This tranche was also issued at a discount of 99.75 and has 101 soft call protection for six months.

During this week, the U.S. term loan was downsized from $2,223,000,000, pricing firmed at the low end of the Libor plus 325 bps to 350 bps and the discount was revised from 99.5. Also, the euro term loan spread finalized at the low end of the Euribor plus 375 bps to 400 bps talk and the discount was tightened from 99.

Reynolds refinancing

Proceeds from Reynolds Group’s term loans and from $250 million of 5 1/8% add-on senior secured notes that priced this week at 103.5 to yield 4.331% will be used to refinance existing term loans.

The add-on notes were done to replace the funds lost from the U.S. term loan downsizing.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the bank deal.

Along with the term loans, the company is looking to resize its revolver as a single $400 million facility and extend the maturity to five years from closing.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

WireCo starts trading

WireCo’s credit facility freed to trade too, with the $460 million senior secured seven-year term loan B (B3/B+) quoted at 99¾ bid, 100¾ offered, a market source said.

Pricing on the term loan B is Libor plus 550 bps with a 1% Libor floor, and it was issued at a discount of 99. The loan has 101 soft call protection for six months and a ticking fee of 275 bps from days 31 to 60 and 550 bps thereafter.

On Tuesday, the term loan B was upsized from $410 million as a privately placed second-lien term loan was downsized by $50 million to $135 million, pricing was lowered from talk of Libor plus 575 bps to 600 bps, the discount was revised from 98, the incremental incurrence ratio was increased to 4 times from 3.5 times, consistent with the $50 million upsize, and the ticking fee was defined.

WireCo getting revolver

Along with the term loan B and privately-placed second-lien term loan, WireCo’s credit facility includes a $100 million ABL revolver.

Goldman Sachs & Co. and Scotiabank are leading the deal that is being done in connection with Onex Corp.’s purchase of a majority interest in the company.

Proceeds from the credit facility will be used to refinance the company’s capital structure and extend its debt maturities.

Closing is expected later this year, subject to regulatory approval and customary conditions.

As part of the transaction, funds managed by Paine & Partners LLC, which acquired WireCo in 2007, will maintain a significant minority stake in the company.

WireCo is a Prairie Village, Kan.-based manufacturer of wire rope, synthetic rope, electromechanical cable and highly engineered cable structures.

Pinnacle Foods tops par

Pinnacle Foods’ $550 million term loan I due Jan. 13, 2023 also broke, with levels seen at 100¼ bid, 100¾ offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with no floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan I from Libor plus 300 bps with a 0.75% Libor floor.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer, marketer and distributor of high-quality branded food products.

Zayo repriced loan trades

Zayo’s $361 million covenant-light term loan due May 6, 2021 freed up, with levels quoted at 100 1/8 bid, 100 3/8 offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par.

Proceeds will be used to reprice the company’s existing $361 million covenant-light term loan B-2 due May 6, 2021 from Libor plus 350 bps with a 1% Libor floor.

The repriced term loan is being made fungible with the company’s existing term loan B-1 due May 6, 2021 priced at Libor plus 275 bps with a 1% Libor floor.

Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co. and RBC Capital Markets LLC are the joint lead arrangers on the deal and joint bookrunners with Citigroup Global Markets Inc., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Sterling frees up

Sterling Talent Solutions’ $60 million add-on first-lien term loan (B1/B) due June 19, 2022 hit the secondary market as well, with levels seen at 99½ bid, 100½ offered, a source remarked.

Pricing on the add-on term loan is Libor plus 475 bps 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.

On Wednesday, the loan was upsized from $50 million and the discount was tightened from the 98.5 area.

Goldman Sachs & Co. and KeyBanc Capital Markets LLC are leading the deal that will be used to repay existing revolver borrowings.

Closing is expected during the week of July 25.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

Cast & Crew breaks

Another deal to begin trading was Cast & Crew’s $80 million add-on first-lien term loan B (B2/B+), with levels quoted at 99 bid, 99¾ offered, a trader remarked.

Pricing on the add-on loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.56 after being revised on Wednesday from 98.55 to ensure fungibility.

With the add-on, pricing on the company’s existing $270 million first-lien term loan B is increasing to Libor plus 400 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and all of the debt is getting 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used with $50 million of privately placed second-lien notes due 2024 to fund the acquisition of CAPS Payroll from Uni-World Capital.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry. CAPS is a Culver City, Calif.-based technology-driven payroll services company serving the entertainment industry.

Revlon flexes lower

Switching to the primary market, Revlon trimmed pricing on its $1.8 billion seven-year covenant-light term loan B (Ba3/B+) to Libor plus 350 bps from Libor plus 400 bps and changed the original issue discount to 99.5 from 99, according to a market source.

The loan still has a 0.75% Libor floor, 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 75 and the full spread thereafter. As previously reported, the ticking fee was always contemplated but the exact structure wasn’t disclosed until this past Wednesday.

Commitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source said.

The company’s $2.2 billion senior secured credit facility also includes a $400 million asset-based revolver.

Revlon lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Barclays are leading Revlon’s credit facility.

Proceeds will be used with $450 million of senior notes to fund the acquisition of Elizabeth Arden Inc. for $14 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

Assuming full realization of expected multi-year synergies and cost reductions of about $140 million, pro forma leverage is expected to be about 4.2 times net debt/adjusted EBITDA by the end of 2016.

Closing is expected by year-end, subject to approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

New York-based Revlon and Pembroke Pines, Fla.-based Elizabeth Arden are beauty companies.

Printpack revises loan

Printpack raised its seven-year term loan B to $275 million from $250 million, set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

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

Commitments due at 5 p.m. ET on Thursday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing first- and second-lien term loan debt.

Printpack is an Atlanta-based manufacturer of flexible and specialty rigid packaging.

Safway reveals guidance

Safway Group came out with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $775 million senior secured seven-year covenant-light term loan B (B3) that launched with a bank meeting on Thursday, according to a market source.

Commitments are due on Aug. 4, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

Vantage releases talk

Vantage Specialty Chemicals held its call, launching its fungible $85 million add-on first-lien term loan (B2/B-) due February 2021 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 is also getting a $40 million second-lien term loan (Caa1/CCC) due February 2022.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of Mallet and Co. Inc., a Carnegie, Pa.-based provider of baking release agents, from ICV Partners.

With the acquisition, Vantage is amending and extending the maturity of its existing $60 million revolver to August 2019 and $301.5 million first-lien term loan to February 2021. Pricing on the existing first-lien term loan is increasing from Libor plus 375 bps with a 1.25% Libor floor to match the add-on pricing, the source added.

Commitments are due on July 28.

Vantage, a portfolio company of Jordan Co., is a Chicago-based provider of naturally derived specialty chemicals for personal care, industrial, consumer products & food industries.

Diamond timing announced

Also in the primary market, Diamond Resorts scheduled a bank meeting in New York for Monday to launch its previously announced $1.3 billion senior secured credit facility, a market source said.

The facility consists of a $100 million five-year revolver and a $1.2 billion seven-year term loan B.

In filings with the Securities and Exchange Commission, the company said that the term loan B is expected to be covenant-light and include a 1% Libor floor and 101 soft call protection for six months.

Barclays, RBC Capital Markets LLC, Jefferies and Natixis are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC for $30.25 per share or about $2.2 billion.

The buyout is also expected to be funded with $600 million in senior unsecured notes, which are backed by a $600 million senior unsecured bridge loan commitment, and about $1.06 billion in equity.

Closing is subject to more than 50% of the company’s common shares being tendered, the receipt of certain regulatory approvals and other customary conditions.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Inteva readies deal

Inteva Products surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday and hold one on one meetings/calls on Tuesday afternoon and Wednesday to launch a $250 million term loan B, a market source remarked.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Well Fargo Securities LLC and TD Securities (USA) LLC are leading the loan that will be used to refinance existing debt, to prefund capital expenditures for recent business wins and to fund a distribution to shareholders.

Inteva is a Troy, Mich.-based designer, manufacturer and assembler of highly-engineered closure systems, roof systems, interior systems and motors & electronics for leading automotive OEMs.

Penn Engineering on deck

Penn Engineering set a lender call for 11 a.m. ET on Monday to launch a $100 million U.S. dollar tack-on first-lien term loan due August 2021, according to a market source.

Pricing on the tack-on term loan is Libor plus 300 bps with a 1% Libor floor, in line with pricing on the existing $216 million U.S. dollar first-lien term loan due August 2021, and all of the debt will get 101 soft call protection or six months the source said. Original issue discount talk on the tack-on loan is not yet available.

Commitments are due at 2 p.m. ET on Aug. 1.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

Penn Engineering is a Danboro, Pa.-based manufacturer of highly engineered specialty fasteners.

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