MW, AlixPartners, DataBank, Brooks break; Ring Container, Oxea, Covenant Surgical updated

By Sara Rosenberg

New York, Sept. 28 – MW Industries finalized pricing on its term loans at the wide end of talk, added a step-down to the first-lien loan tranche and then freed to trade on Thursday, and AlixPartners LLP, DataBank and Brooks Automation Inc. surfaced in the secondary market too.

In more happenings, Ring Container Technologies increased the size of its term loan, lowered the spread and extended the call protection, and Oxea GmbH firmed pricing on its U.S. and euro term loans at the low side of guidance and modified the issue price on the euro tranche.

Additionally, Covenant Surgical Partners Inc. tightened the spread and original issue discount on its term loan debt, and H.B. Fuller Co. and Beacon Roofing Supply Inc. joined the near-term primary calendar.

MW firms, trades

MW Industries set pricing on its $385 million seven-year first-lien term loan (B2/B) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and added a step-down to Libor plus 375 bps if corporate ratings are B2/B, according to a market source. Current corporate ratings are B3/B.

Also, the company set pricing on its $120 million eight-year second-lien term loan (Caa2/CCC+) at Libor plus 800 bps, the wide end of the Libor plus 775 bps to 800 bps talk, the source said.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $575 million of credit facilities also include a $70 million five-year revolver.

With terms finalized, the debt made its way into the secondary and the first-lien term loan was quoted at par bid, par ¾ offered, while the second-lien term loan was seen at par bid, 101 offered, a trader added.

RBC Capital Markets LLC, Citigroup Global Markets Inc., Jefferies LLC, Citizens Bank and Antares Capital are leading the deal that will help fund the buyout of the company by American Securities from Genstar.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

AlixPartners hits secondary

AlixPartners’ $1,377,000,000 covenant-light term loan B (B2/B+) due April 2024 freed to trade as well, with levels seen at par 1/8 bid, par 3/8 offered, a trader said.

Pricing on the loan is Libor plus 275 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., Bank of America Merrill Lynch, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected during the week of Oct. 2.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

DataBank frees up

DataBank’s credit facilities began trading too, with the $250 million seven-year first-lien term loan quoted at 99 7/8 bid, par 3/8 offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 375 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.

During syndication, the first-lien term loan was upsized from $230 million and pricing firmed at the low end of the Libor plus 375 bps to 400 bps talk.

The company’s $400 million of credit facilities also include a $50 million revolver and a $100 million 7.5-year pre-placed second-lien term loan.

SunTrust Robinson Humphrey Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are leading the deal that will be used with equity to refinance existing debt and fund growth initiatives, and the funds from the recent first-lien term loan upsizing will be used to finance a small acquisition.

DataBank is a Dallas-based provider of enterprise-class data center, cloud, and interconnection services.

Brooks Automation tops OID

Brooks Automation’s $200 million seven-year senior secured covenant-light term loan B (B1/BB-) also broke, with levels quoted at par bid, 101 offered, a trader said.

Pricing on the term loan is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the loan was lowered from talk of Libor plus 275 bps to 300 bps and the discount was modified from 99.5.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including to prefund acquisitions.

Closing is expected on Wednesday.

Brooks Automation is a Chelmsford, Mass.-based provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences.

Ring Container revised

Back in the primary market, Ring Container Technologies raised its seven-year covenant-light term loan to $475 million from $445 million, cut pricing to Libor plus 275 bps from talk of Libor plus 300 bps to 325 bps, pushed out the 101 soft call protection to one year from six months and changed the MFN to 50 bps with no carve-outs, according to a market source.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.5.

The company is also getting a $30 million delayed-draw term loan that has a ticking fee of 35 bps from days 61 to 120, half the margin from days 121 to 180 and Libor plus the full margin thereafter.

Commitments were due at noon ET on Thursday, the source said.

Bank of America Merrill Lynch, BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by MSD Partners LP from Carl Ring and his family.

Closing is expected in the fourth quarter.

Ring Container is an Oakland, Tenn.-based blow molder of high-density polyethylene and polyethylene terephthalate plastic bottles for the food service, retail food and other end-use markets.

Oxea updates deal

Oxea GmbH set pricing on its $530 million seven-year covenant-light term loan B at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months intact, a market source remarked.

Additionally, the company firmed the spread on its €450 million seven-year covenant-light term loan B at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk, and revised the issue price to par from 99.75, the source continued. This tranche still has a 0% floor and 101 soft call protection for six months.

The company’s €1,035,000,000 equivalent of credit facilities (B3/B) also include a €135 million six-year revolver.

Commitments were due end of day on Thursday and allocations are expected on Friday, the source added.

Bank of America Merrill Lynch and HSBC are the global coordinators on the deal that will be used to refinance debt and for general corporate purposes. Bank of America is left on the U.S. loan and HSBC is left on the euro loan, J.P. Morgan Securities LLC and Unicredit are joint bookrunners, and LBBW is a lead arranger.

Oxea is a Monheim, Germany-based manufacturer of oxo intermediates and oxo derivatives.

Covenant Surgical flexes

Covenant Surgical Partners reduced pricing on its $150 million seven-year first-lien term loan (B3/B-) and $45 million delayed-draw first-lien term loan (B3/B-) to Libor plus 475 bps from Libor plus 500 bps and adjusted the original issue discount to 99.75 from 99, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source said.

The company’s $220 million of credit facilities also include a $25 million revolver (Ba3/B+).

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

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other existing shareholders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

H.B. Fuller on deck

Also in the primary market, H.B. Fuller set a lenders’ presentation for 11 a.m. ET on Monday to launch a $1.85 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and U.S. Bank are leading the deal that will be used to fund the acquisition of Royal Adhesives & Sealants for $1,575,000,000.

Leverage is expected to be around 5.3 times.

Closing could occur as early as October.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company. Royal Adhesives is a South Bend, Ind.-based producer of specialty adhesives and sealants.

Beacon Roofing sets launch

Beacon Roofing Supply emerged with plans to hold a bank meeting at 1 p.m. ET in New York on Tuesday to launch a new loan transaction, a market source said.

According to filings with the Securities and Exchange Commission, the company is planning a $970 million seven-year covenant-light term loan B and a $1.3 billion asset-based revolver.

As committed, pricing on the term loan B is expected at Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.5, and the debt will have 101 soft call protection for six months, and pricing on the revolver is expected to range from Libor plus 125 bps to 175 bps based on average excess availability, with initial pricing anticipated at Libor plus 150 bps.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal, with Citi the left lead on the term loan B and Wells Fargo the left lead on the revolver.

Beacon buying Allied

Proceeds from Beacon Roofing’s credit facilities will be used with $1.3 billion in senior unsecured notes and a commitment from Clayton, Dubilier & Rice to provide $500 million in perpetual convertible preferred equity, which can be reduced to a minimum of $400 million through capital market transactions prior to close, to fund the $2,625,000,000 acquisition of Allied Building Products Corp. and to refinance an existing $440 million term loan B.

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

Beacon Roofing is a Herndon, Va.-based distributor of residential and commercial roofing materials and complementary building products. Allied Building is an East Rutherford, N.J.-based distributor of exterior and interior building products.

MediaOcean allocates

In other news, MediaOcean LLC allocated its fungible $90 million add-on term loan B (B3) due August 2022 on Thursday, a market source remarked.

Pricing on the add-on loan is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.75.

Macquarie Capital (USA) Inc. and Golub are leading the deal that will be used to refinance second-lien term loan debt.

MediaOcean is a New York-based software company for the advertising sector.

© 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.