Novolex term loan frees to trade atop OID; Solenis accelerates commitment deadline

By Sara Rosenberg

New York, March 30 – Novolex Holdings LLC (Clydesdale Acquisition Holdings Inc.) increased the size of its first-lien term loan, tightened the original issue discount and extended the call protection before breaking for trading on Wednesday.

And, in more happenings, Solenis moved up the commitment deadline for its incremental term loan B.

Novolex reworked

Novolex raised its seven-year sustainability-linked first-lien term loan (B2/B) to $3 billion from $2.63 billion as it scaled back its sustainability-linked senior secured notes to $500 million from $750 million and its sustainability-linked senior notes to $1.11 billion from $1.23 billion, a market source remarked.

In addition, original issue discount talk on the term loan was revised to a range of 97 to 97.5 from 96, and then the discount firmed at 97.5, and the 101 soft call protection was extended to one year from six months, the source said.

Pricing on the term loan remained at SOFR+10 basis points CSA plus 425 bps with a 0.5% floor.

Recommitments were due at noon ET on Wednesday, moved up from an original deadline of 5 p.m. ET on Wednesday, the source continued.

Novolex hits secondary

Novolex’s term loan freed to trade in the afternoon, with levels quoted at 98 bid, 98¾ offered, another source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, Wells Fargo Securities LLC, BNP Paribas Securities Corp., MUFG, HSBC Securities (USA) Inc., BMO Capital Markets, Mizuho and Macquarie Capital (USA) Inc. are leading the deal.

The term loan and notes will be used to help fund the buyout of the company by Apollo Global Management from Carlyle. Carlyle will retain a minority stake in the company.

Closing is expected in the second quarter, subject to regulatory approvals.

Novolex is a Hartsville, S.C.-based manufacturer of packaging products for the foodservice, delivery and carryout, food processor and industrial markets.

Solenis tweaks timing

Solenis accelerated the commitment deadline for its $300 million incremental term loan B due November 2028 (B2/B-) to 11 a.m. ET on Thursday from 10 a.m. ET on Friday, a market source said.

Talk on the incremental term loan is SOFR+10 bps CSA plus 450 bps with a 0.5% floor, an original issue discount of 97 to 97.5 and 101 soft call protection for six months.

Goldman Sachs and BofA Securities Inc. are leading the deal that will be used to pay down ABL borrowings and to add cash to balance sheet for general corporate purposes.

Platinum Equity is the sponsor.

Solenis is a Wilmington, Del.-based manufacturer and distributor of specialty chemicals and solutions for water-intensive industries and pools.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.