National Financial, Sinclair, Wausau Paper, CCS break; Amaya, iParadigms, Key Safety revised

By Sara Rosenberg

New York, July 22 – National Financial Partners Corp., Sinclair Television Group Inc., Wausau Paper Corp. and Correct Care Solutions (CCS Intermediate Holdings LLC) all saw their loans hit the secondary market on Tuesday.

Meanwhile, in the primary, Amaya Gaming Group Inc. (Amaya BV and Amaya (US) Co-Borrower LLC) added a euro tranche to its first-lien term loan and reduced its U.S. tranche so that the total size of the loan was unchanged.

Also, iParadigms Holdings LLC increased its first- and second-lien term loan sizes, tightened the offer price on its first-lien tranche and lowered the spread on its second-lien tranche, Key Safety Systems Inc. revised its first-lien tranche sizes, eliminated its second-lien loan and adjusted first-lien term loan pricing, and Citgo Petroleum Corp. accelerated the commitment deadline on its term loan.

Furthermore, Goodpack Ltd. (IBC Capital), Platform Specialty Products Corp. (MacDermid Inc.), Element Materials Technology and Zest Holdings LLC released price talk with launch, and Regent Energy Group Ltd. and Orion Engineered Carbons joined the near-term calendar.

National Financial tops par

National Financial Partners’ $867 million covenant-light term loan B due July 2020 freed up for trading on Tuesday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 350 basis points with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

Last week, the offer price on the loan was tightened from talk of 99½ to 99¾.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS AG, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets are leading the deal that will be used to reprice an existing first-lien term loan B from Libor plus 425 bps with a 1% Libor floor.

National Financial is a New York-based provider of insurance brokerage and wealth management services to middle market companies, financial advisers and high net worth individuals.

Sinclair hits secondary

Sinclair Television’s $400 million seven-year incremental covenant-light term loan B (Ba1/BB+) broke too, with levels quoted at 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when first-lien net leverage is 1.75 times. There is a 0.75% Libor floor and the debt was issued at a discount of 99¾.

During syndication, the loan was downsized from $500 million as the company’s senior notes offering was upsized to $550 million from $450 million, the spread firmed at the high end of the Libor plus 250 bps to 275 bps talk and the discount tightened from 99½. Also, the company removed from an amendment request plans to eliminate maintenance covenants from its existing term loan B.

RBC Capital Markets, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used with the notes, cash on hand and/or a revolver draw to fund the purchase of Allbritton Communications’ television stations and for general corporate purposes.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Wausau Paper frees up

Also emerging in the secondary was Wausau Paper Corp.’s $175 million six-year term loan (B), with levels quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used to refinance notes.

Wausau Paper is a Mosinee, Wis.-based paper company.

Correct Care breaks

Correct Care Solutions’ credit facility began trading as well, with the $335 million seven-year first-lien term loan (B1/B) seen at 99¾ bid, par ¼ offered, a trader remarked.

The first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor and was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 425 bps and the discount was revised from 99.

The company’s first-lien facility includes a $50 million five-year revolver (B1/B).

Credit Suisse Securities (USA) LLC, GE Capital Markets, NXT and Ares are leading the deal that will be used to fund the merger of Correct Care Solutions with Correctional Healthcare Cos., a Denver-based provider of correctional health care services, and fund a dividend.

Also for the transaction, the Nashville, Tenn.-based provider of correctional health care is getting a $170 million second-lien term loan (Caa2/CCC+) led by Ares.

Amaya adds euro

Moving to the primary, Amaya Gaming carved out a minimum €250 first-lien term loan from its $2 billion (total size unchanged) seven-year first-lien covenant-light term loan (B1/BB), a market source said.

Talk on the euro debt matches the previously outlined talk on the U.S. debt at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount in the 99½ area and 101 soft call protection for six months, the source continued.

The company’s $2.9 billion senior secured credit facility also includes a $100 million five-year revolver (B1/BB), and an $800 million eight-year second-lien covenant-light term loan (Caa1/B) talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount in the 99 area and call protection of 102 in year one and 101 in year two.

Commitments are due on July 25.

Amaya lead banks

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading Amaya’s credit facility, with the Deutsche Bank left lead on the first-lien loan and Barclays left lead on the second-lien loan.

Proceeds will be used with $1 billion to be raised through the issuance of convertible preferred shares, $642 million from an equity issuance and $238 million in cash on hand to fund the acquisition of Oldford Group Ltd., parent company of Rational Group Ltd., for $4.9 billion.

Closing is expected on or about Sept. 30, subject to approval by Amaya’s shareholders and customary conditions, including receipt of all regulatory approvals.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services. Oldford Group is an Onchan, Isle of Man-based operator of gaming and related businesses and brands.

iParadigms restructures

iParadigms raised its seven-year first-lien covenant-light term loan to $240 million from $225 million and moved the original issue discount to 99½ from 99, while keeping pricing at Libor plus 400 bps with a 1% Libor floor and the 101 soft call protection for six months intact, according to a market source.

In addition, the eight-year second-lien covenant-light term loan was lifted to $120 million from $115 million and the spread was trimmed to Libor plus 725 bps from Libor plus 750 bps, while the 1% Libor floor, discount of 99 and call protection of 102 in year one and 101 in year two were unchanged, the source said.

The company’s now $376 million credit facility also includes a $16 million revolver.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Insight Venture Partners and GIC for $752 million.

iParadigms is an Oakland, Calif.-based provider of anti-plagiarism and online grading software.

Key Safety reworks deal

Key Safety Systems upsized its seven-year first-lien term loan to $525 million from $420 million, raised pricing to Libor plus 375 bps from revised talk of Libor plus 350 bps, but still the tight end of initial talk of Libor plus 375 bps to 400 bps, and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99½. The discount was changed the other day from 99.

In addition, the company downsized its revolver to $75 million from $80 million, and eliminated the $100 million eight-year second-lien term loan that was priced at Libor plus 700 bps with a 1% Libor floor and a discount of 99, and had call protection of 102 in year one and 101 in year two, the source said.

Previously, pricing on the second-lien loan was cut from talk of Libor plus 725 bps to 750 bps.

Key Safety being acquired

Proceeds from Key Safety’s credit facility will be used to fund its buyout by FountainVest Partners from Crestview Partners.

UBS AG, Citigroup Global Markets Inc. and Nomura are leading the $600 million credit facility.

Recommitments are due at noon ET on Wednesday, the source added.

Key Safety Systems is a Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

Citgo ups deadline

Citgo moved up the commitment deadline on its $650 million senior secured term loan B (B1/NA/BB+) to 5 p.m. ET on Tuesday from Wednesday, according to a market source.

The loan is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Final pricing and allocations are expected to emerge on Wednesday, the source said.

Deutsche Bank Securities Inc., ABN Amro Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc., Natixis and SMBC are leading the deal that will be used with $650 million of senior secured notes to refinance existing debt and fund a distribution to parent company Petroleos de Venezuela SA.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

Goodpack sets talk

Also in the primary, Goodpack held its bank meeting on Tuesday, launching its $520 million seven-year first-lien covenant-light term loan with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, according to a market source.

As for the $200 million eight-year second-lien covenant-light term loan, that was launched at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $835 million senior credit facility also includes a $115 million revolver.

Commitments are due on Aug. 4.

Morgan Stanley Senior Funding Inc. (left on first-lien), Credit Suisse Securities (USA) LLC (left on second-lien), DBS Bank Ltd., Goldman Sachs Bank USA, KKR Capital Markets LLC, Mizuho Bank Ltd., Macquarie Capital (USA) Inc. and Natixis are leading the deal.

Proceeds will be used to help fund the buyout of Goodpack, a Singapore-based operator of a fleet of nestable and collapsible intermediate bulk containers, by KKR.

Platform Specialty guidance

Platform Specialty Products launched at its bank meeting its $130 million fungible U.S. term loan B at Libor plus 300 bps and its $275 million euro equivalent term loan B at Euribor plus 325 bps, with both tranches having a 1% floor, an original issue discount of 99 to 99½, 101 soft call protection for six months, and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter, a source said.

By comparison, filings with the Securities and Exchange Commission, had the term loan expected at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 or better and 101 soft call protection for six months.

In addition to the incremental $405 million equivalent incremental senior secured covenant-light first-lien term loan B (B1) due June 7, 2020, the company is looking to upsize its revolver (B1) due June 7, 2018 to $150 million from $50 million.

Proceeds will be used with cash on hand to fund the acquisition of Chemtura AgroSolutions from Chemtura Corp. for about $1 billion, consisting of $950 million in cash plus 2 million shares of common stock.

Platform Specialty amending

In connection with the transaction, Platform Specialty is seeking an amendment to its existing credit facility to account for the scale and corporate strategy of the pro forma company, the source continued.

Existing lenders are being offered a 25 bps amendment fee.

Lead bank, Barclays, is asking for commitments and consents by July 31, the source added.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Pro forma net senior secured and total leverage is 3.8 times.

Platform is a Miami-based producer of high-technology specialty chemical products and provider of technical services. Chemtura AgroSolutions is a provider of agrochemicals and seed treatment products.

Element Materials launches

Element Materials Technology’s $285 million seven-year covenant-light term loan is being talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

The company’s $325 million credit facility (B2), which launched with a bank meeting during the session, also includes a $40 million five-year revolver.

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

RBC Capital Markets, BNP Paribas Securities Corp., GE Capital Markets and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt, to fund two tuck-in acquisitions and to pay a dividend.

Element is a global network of laboratories with experts specializing in materials testing, product qualification testing and failure analysis.

Zest repricing details

Zest Holdings came out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months on its $160 million first-lien term loan B due August 2020 that launched with a lender call, a source said.

Proceeds will be used to reprice an existing term loan B from Libor plus 550 bps with a 1% Libor floor.

Lead bank, Deutsche Bank Securities Inc., is asking for commitments by noon ET on Aug. 1.

Zest is an Escondido, Calif.-based manufacturer and distributor of overdenture attachment systems to the dental industry.

Regent Energy readies deal

Regent Energy Group set a bank meeting for 1:30 p.m. ET on Wednesday to launch a new credit facility that consists of a $75 million revolver, a C$325 million U.S. dollar equivalent covenant-light first-lien term loan and a C$140 million U.S. dollar equivalent covenant-light second-lien term loan, according to a market source.

Goldman Sachs Bank USA (left on first-lien), Deutsche Bank Securities Inc. (left on second-lien), Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal, which will be used to help fund the buyout of the company by Advent International.

Regent Energy is a Nisku, Alberta-based oil recovery company.

Orion on deck

Orion Engineered Carbons scheduled a bank meeting in New York on Friday and one in London on Monday to launch a €780 million senior secured credit facility, according to a market source.

The facility consists of a €115 million five-year revolver, and a €665 million seven-year term loan of which about €265 million will be U.S. dollar equivalent, the source said.

Goldman Sachs Bank USA, UBS AG, Barclays, J.P. Morgan and Morgan Stanley are joint bookrunners on the deal and lead arrangers with DZ Bank AG, Fifth Third Bank, HSBC Bank and Mediobanca S.p.A.

Proceeds will be used to refinance existing debt, including the company’s €284 million 10% senior secured notes due 2018 and $280 million 9 5/8% senior secured notes due 2018, in connection with the company’s initial public offering of common shares.

Orion Engineered Carbons is a Frankfurt, Germany-based supplier of Carbon Black.

Energy & Exploration closes

In other news, Energy & Exploration Partners LLC completed its $775 million 4½-year senior secured term loan B, a news release said.

Pricing on the loan is Libor plus 675 bps with a 1% Libor floor, and it was sold at an original issue discount of 98½ after widening during syndication from 99. There is hard call protection of 102 in year one and 101 in year two.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Global Hunter Securities led the deal that was used with $375 million of convertible subordinated notes due 2019 to fund the roughly $715 million acquisition of 18,300 net acres in Houston and Madison Counties, Texas, from TreadStone Energy Partners LLC, to refinance the company’s existing senior unsecured notes and to fund a portion of its 2014 and 2015 capital expenditure budget.

Energy & Exploration is a Fort Worth-based exploration and production company.

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