Forming Machining frees up, Dealogic tweaks deal; Paradigm, CPM, Numotion and more set talk

By Sara Rosenberg

New York, Oct. 9 – Forming Machining Industries Holdings LLC’s credit facilities made their way into the secondary market on Tuesday, and the first-lien term loan was seen trading above its original issue discount.

Moving to the primary market, Dealogic trimmed pricing on its U.S. dollar and euro term loan B debt and added leverage-based step-downs.

Also, Paradigm Outcomes (Comet Acquisition Inc.), CPM Holdings Inc., Numotion, Horizon Pharma Inc., Global Payments Inc., Juice Plus+ (JP Intermediate II LLC), Multi-Color Corp., Amynta Group, BroadStreet Partners Inc. and Consilio released price talk with launch.

Furthermore, Dawn Acquisition LLC (AT&T Colocation business), Cision (Canyon Cos. Sarl), Wynn Resorts Ltd., Science Applications International Corp. and Nexstar Broadcasting Group Inc. joined the near-term primary calendar.

Forming Machining breaks

Forming Machining Industries’ credit facilities freed to trade on Tuesday, with the $260 million covenant-light first-lien term loan quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 basis points with a step-down to Libor plus 400 bps based on leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The company’s $370 million of credit facilities also include a $50 million revolver and a $60 million covenant-light second-lien term loan.

The second-lien term loan is priced at Libor plus 825 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $245 million, pricing was increased from talk in the range of Libor plus 375 bps to 400 bps and the step-down was added. Also, the second-lien term loan was downsized from $75 million and the spread was lifted from talk in the range of Libor plus 775 bps to 800 bps.

Forming buying Atlas

Proceeds from Forming Machining Industries’ credit facilities will be used to fund the acquisition of Atlas Group, a Wichita, Kan.-based manufacturer of flight critical, complex assemblies for a wide range of commercial, business and military aircraft.

Antares Capital and SunTrust Robinson Humphrey Inc. are leading the deal.

Forming Machining Industries, an AE Industrial Partners portfolio company, is a Park City, Kan.-based manufacturer of large, complex assemblies primarily for commercial aircraft.

Dealogic revises deal

Switching to the primary market, Dealogic cut the spread on its $641 million equivalent dollar and euro first-lien term loan (B3) due December 2024 to Libor/Euribor plus 325 bps from Libor/Euribor plus 350 bps and added two 25 bps step-downs based on leverage, a market source remarked.

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

Sizes of the U.S. and euro tranches are still to be determined, based on demand.

Recommitments from U.S. lenders were due at 5 p.m. ET on Tuesday and recommitments from European lenders are due at noon London time on Wednesday, the source added.

Allocations are targeted for Wednesday.

UBS Investment Bank is leading the transaction that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 400 bps with a 1% floor.

Dealogic is a New York and London-based provider of data and analytics, market intelligence and capital markets software solutions for financial institutions.

Paradigm Outcomes guidance

Paradigm Outcomes held its bank meeting in the morning and announced price talk on its $450 million seven-year covenant-light first-lien term loan (B2/B) and $155 million eight-year covenant-light second-lien term loan (Caa2/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 0% Libor floor and a discount of 99, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $655 million of credit facilities also include a $50 million revolver (B2/B).

Paradigm being acquired

Proceeds from Paradigm Outcomes’ credit facilities will be used to help fund its buyout by Omers Private Equity. Summit Partners, Paradigm’s existing majority owner, will continue to be a shareholder in the company.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal.

Commitments are due on Oct. 23.

Paradigm Outcomes is a Walnut Creek, Calif.-based provider of complex and catastrophic medical management to the workers’ compensation industry.

CPM floats terms

CPM Holdings released price talk on its $515 million seven-year first-lien term loan (B2) and $225 million eight-year second-lien term loan (Caa2) in connection with its afternoon bank meeting, a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with two 25 bps leverage-based step-downs, a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with one 25 bps leverage-based step-down, a 0% Libor floor and a discount of 99, the source added.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $790 million senior secured deal also includes a $50 million five-year revolver (B2).

Commitments are due on Oct. 25.

Jefferies LLC, BMO Capital Markets, Goldman Sachs Bank USA, Rabobank and Stifel are leading the deal that will be used to fund the buyout of the company by American Securities LLC.

CPM is a provider of proprietary process equipment, engineered system solutions and related aftermarket parts for the animal feed, oilseed processing, consumer food products, biomass, and engineered materials markets.

Numotion reveals talk

Numotion 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 $330 million seven-year covenant light first-lien term loan (B) and $70 million first-lien delayed-draw term loan (B) with two-year availability that launched with a bank meeting during the session, a market source said.

Commitments are due on Oct. 23, the source added.

The company’s $610 million of credit facilities also include a $50 million five-year revolver (B), a $130 million privately placed second-lien term loan and a $30 million privately placed second-lien delayed-draw term loan.

Antares Capital, Nomura and Ares are leading the deal that will be used to help fund the buyout of the company by AEA Investors LP.

Numotion is a Nashville, Tenn.-based provider of complex rehabilitation technology mobility solutions to individuals with permanent ambulatory disability.

Horizon details surface

Horizon Pharma launched on its call an $818 million senior secured covenant-light term loan B due March 29, 2024 talked at Libor plus 300 bps with a 25 bps step-down if total leverage is 3.5 times, a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Commitments from existing lenders are due at 5 p.m. ET on Monday, and commitments from new lenders are due at 5 p.m. ET on Oct. 16, the source added.

Closing is targeted for Oct. 23.

Horizon Pharma is a Dublin-based biopharmaceutical company.

Global Payments seeks loan

Global Payments held a lender call at 3 p.m. ET to launch a $500 million seven-year covenant-light term loan B talked at Libor plus 175 bps to 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch is the left lead on the deal that will be used to repay some revolver borrowings.

Global Payments is an Atlanta-based provider of payment technology services.

Juice Plus+ launches

Juice Plus+ held a bank meeting in the morning and launched a $438 million seven-year first-lien term loan talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, a market source said.

The company’s $488 million of credit facilities (B2/B+) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on Oct. 23, the source added.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the buyout of the company by Altamont Capital.

Juice Plus+ is a Collierville, Tenn.-based provider of whole food based nutritional products.

Multi-Color holds call

Multi-Color emerged in the morning with plans to host a lender call at 11 a.m. ET to launch a $496 million covenant-light term loan B (Ba2/BB+) due Oct. 31, 2024 talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Friday and allocations are expected thereafter, the source said.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0% Libor floor.

Multi-Color is a Cincinnati-based label maker.

Amynta repricing

Amynta Group held a lender call at 2:30 p.m. ET and launched a $552.5 million covenant-light first-lien term loan B due Feb. 28, 2025 talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 0% Libor floor.

Amynta Group, formerly known as FeeCo, is a team of warranty and specialty risk companies as well as managing general agents.

BroadStreet OID talk

BroadStreet Partners disclosed original issue discount talk of 99.5 to 99.75 on its fungible $150 million add-on term loan B that launched with a call on Tuesday, a market source said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the company’s existing $591 million term loan B.

Commitments are due on Oct. 18.

RBC Capital Markets LLC is the left lead on the deal that will used for acquisitions and to repay drawn revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

Consilio sets guidance

Consilio hosted its lender call in the afternoon and launched a fungible $150 million incremental term loan (B) at talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection until April 2019, according to a market source.

Commitments are due on Oct. 16, the source said.

Jefferies LLC is leading the deal that will be used for mergers and acquisitions.

Consilio is a provider of eDiscovery, document review and legal consulting services.

Dawn on deck

Also in the primary market, Dawn Acquisition scheduled a bank meeting for 10 a.m. ET on Thursday to launch $600 million of credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver and a $550 million seven-year first-lien term loan, the source said.

Barclays, Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the acquisition of AT&T’s data center colocation operations and assets by Brookfield Infrastructure for $1.1 billion.

Closing is subject to customary closing conditions, including regulatory approvals.

Dawn is a full service colocation provider with a scaled portfolio of owned and leased data center facilities and related infrastructure assets.

Cision readies deal

Cision set a lender call for 11 a.m. ET on Wednesday to launch a $974,650,000 covenant-light term loan B due June 2023 and a €247.5 million covenant-light term loan B due June 2023, a market source remarked.

The term loans are talked with a 0% floor and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Oct. 17.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice existing U.S. and euro term loans.

Cision is a Chicago-based software-as-a-service platform for communications professionals.

Wynn plans loan

Wynn Resorts will hold a lender call at noon ET on Wednesday to launch a $400 million six-year covenant-light term loan B (Ba3) that has a 0% Libor floor and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Oct. 18, the source added.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used for general corporate purposes.

Wynn Resorts is a Las Vegas-based developer, owner and operator of destination casino resorts.

Science coming soon

Science Applications surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch new credit facilities, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

In September, the company disclosed that it received a commitment for a new $1.05 billion seven-year senior secured term loan in connection with its pending acquisition of Engility Holdings Inc. for 0.45 Science Applications common shares per Engility share, and that the new debt would be used to repay Engility’s existing debt. The transaction is valued at about $2.5 billion, including the repayment of $900 million of Engility’s debt.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering and enterprise information technology markets. Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Nexstar joins calendar

Nexstar Broadcasting set a loan lender call for 11 a.m. ET on Wednesday, a market source said.

Bank of America Merrill Lynch is leading the transaction.

Nexstar is an Irving, Texas-based diversified media company.

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