Emerald Expo breaks; Drillships, National Financial, Emerald Performance, Meritas revised

By Sara Rosenberg

New York, July 17 – Emerald Expositions Holding Inc.’s term loan emerged in the secondary market on Thursday with levels quoted above its issue price.

Over in the primary, Drillships Ocean Ventures Inc. (Ocean Rig) raised the size of its term loan B as plans for a bond offering were eliminated and reduced the spread on the debt, and National Financial Partners Corp. revised the offer price on its term loan.

Also, Emerald Performance Materials LLC upsized its first-lien term loan, firmed the spread on its first- and second-lien debt at the low end of guidance and adjusted the original issue discount on its second-lien tranche.

In addition, Meritas School Holdings LLC set the spread on its second-lien term loan at the low end of talk and tightened the Libor floor and original issue discount, and Boulder Brands Inc. upsized its term loan and moved up the commitment deadline.

Furthermore, Houston Fuel Oil Terminal Co., Formula One Group (Delta 2 (Lux) Sarl) and U.S. Shipping Corp. disclosed price talk with launch, and Expro Oilfield Services plc, Goodpack Ltd. (IBC Capital) and MSX International surfaced with new deal plans.

Emerald Expositions frees up

Emerald Expositions’ $600 million covenant-light term loan B due June 17, 2020 began trading on Thursday with levels seen at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 375 basis points with a 1% Libor floor and it was issued at par. There is 101 soft call protection for one year that was extended earlier this week from six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice the company’s existing term loan from Libor plus 425 bps with a 1.25% Libor floor.

Emerald is a San Juan Capistrano, Calif.-based operator of large business-to-business tradeshows.

Drillships upsizes, flexes

Moving to the primary, Drillships Ocean Ventures increased the size of its senior secured term loan B (B2/B+) to $1.3 billion from $800 million, lowered pricing to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps and canceled plans for a $500 million senior secured notes offering, according to a market source.

As before, the loan has a 1% Libor floor, an original issue discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments were due at 3 p.m. ET on Thursday with allocations targeted for Friday.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help refinance a $1.35 billion senior secured term loan.

Based in Nicosia, Cyprus, Drillships is a subsidiary of Ocean Rig UDW Inc., a Greece-based international offshore drilling contractor.

National Financial modified

National Financial Partners changed the offer price on its $867 million covenant-light term loan B due July 2020 to par from talk of 99½ to 99¾, while keeping pricing at Libor plus 350 bps with a 1% Libor floor and the soft call protection at 101 for six months, a source remarked.

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

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.

Emerald Performance updated

Emerald Performance Materials lifted its seven-year first-lien covenant-light term loan (B1/B) to $550 million from $525 million and set pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, while leaving the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, a market source said.

Meanwhile, pricing on the $230 million eight-year second-lien covenant-light term loan (Caa1/CCC+) firmed at Libor plus 675 bps, the tight end of the Libor plus 675 bps to 700 bps talk, and the original issue discount was modified to 99½ from 99, while the 1% Libor floor and call protection of 102 in year one and 101 in year two were unchanged.

The company’s now $855 million credit facility also includes a $75 million revolver (B1/B).

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

Emerald Performance leads

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, Keybanc Capital Markets and RBC Capital Markets are leading Emerald Performance’s credit facility that will be used to help fund its buyout by American Securities LLC from Sun Capital Partners Inc.

As a result of the first-lien term loan upsizing, the amount of equity being used for the buyout was downsized.

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

Emerald Performance is Cuyahoga Falls, Ohio-based manufacturer and marketer of specialty chemicals.

Meritas revises loan

Meritas School finalized pricing on its $80 million 6½-year second-lien term loan (Caa2/CCC+) at Libor plus 900 bps, the tight end of the Libor plus 900 bps to 925 bps talk, cut the Libor floor to 1% from 1.25% and changed the original issue discount to 99½ from 98½, according to a market source.

The loan still has call protection of 103 in year one, 102 in year two and 101 in year three.

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

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to fund a dividend recapitalization.

As part of the transaction, the company is looking to amend its existing first-lien loan to permit the second-lien loan and dividend and reset the 101 soft call protection for six months, and first-lien lenders are being offered a 15 bps amendment fee.

Meritas is a Northbrook, Ill.-based family of private college-preparatory schools.

Boulder Brands tweaks size

Boulder Brands, a Paramus, N.J.-based health and wellness food company, increased its term loan B to $300 million from $290 million by lifting the size of its add-on and accelerated the commitment deadline to 3 p.m. ET on Friday from Wednesday, a source remarked.

The term loan B is talked at Libor plus 350 bps with a leveraged-based grid that has step-ups and a 1% Libor floor.

Of the total term loan B amount, $250 million is existing debt that is being repriced from Libor plus 400 bps with a 1% Libor floor and the remainder is the add-on debt.

Along with the term loan B, the company is looking to increase its revolver to $120 million from $80 million and amend its credit facility to allow for acquisition flexibility.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and Barclays are leading the deal for which lenders are offered a 25 bps upfront fee on the new money and a 25 bps amendment fee.

Houston Fuel reveals talk

Also in the primary, Houston Fuel Oil Terminal held its bank meeting on Thursday morning, and with the event, talk on its $625 million senior secured credit facility (Ba2/BB-) was announced, according to a market source.

The $75 million five-year revolver is talked at Libor plus 300 bps with no Libor floor and a par offer price, and the $550 million seven-year covenant-light term loan B is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Commitments are due on July 31 and closing is expected in mid-August.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will refinance Prudential notes, an existing revolver and term loan debt.

Houston Fuel (formerly Buffalo Gulf Coast Terminals LLC) is a Houston-based marine terminal for storage of residual fuel oil and crude oil.

Formula One launches

Formula One came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99½ on its $1 billion seven-year incremental first-lien covenant-light term loan (B), and Libor plus 700 bps with a 1% Libor floor and a discount of 99 on its $1 billion eight-year second-lien covenant-light term loan (CCC+), which launched with an afternoon bank meeting, according to a market source.

The company is also looking to amend and extend $2,102,000,000 of existing first-lien covenant-light term loans so that the debt will have a seven-year maturity, and price talk on the extended debt, which will be fungible with the incremental first-lien loan, is also Libor plus 350 bps to 375 bps with a 1% Libor floor. And, €40 million of existing first-lien covenant-light term loans will be extended to have a seven-year maturity and amended as well.

Existing lenders are being offered a 50 bps fee for the extended first-lien term loans.

Formula One call protection

Formula One’s incremental and existing first-lien term loans are talked with 101 soft call protection for six months, and the second-lien term loan is talked with hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due on July 28.

Bank of America Merrill Lynch and RBS Securities Inc. are leading the deal.

Proceeds from the new loans and cash on hand will be used to refinance private high-yield debt and fund a distribution to shareholders.

Formula One is a sports media property, which operates and holds the commercial rights to the Formula One World Championships.

U.S. Shipping details emerge

U.S. Shipping held its call, launching a $213 million first-lien term loan due April 2018 with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and a par offer price, according to a market source.

Commitments are due on July 24, the source said.

UBS AG is leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 775 bps with a 1.25% Libor floor.

Existing lenders will get paid out at 102 as a result of the current call protection.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services.

Expro readies deal

Expro Oilfield Services emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $1.77 billion credit facility (Ba3/B), according to a market source.

The facility consists of a $250 million revolver, a $1.16 billion covenant-light term loan B and a $360 million covenant-light delayed-draw term loan, with the two term loans being sold as a strip, the source said.

Goldman Sachs Bank USA, Barclays, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading the deal.

Proceeds from the funded term loan will be used to refinance the company’s 8½% secured notes due 2016, and proceeds from the delayed-draw term loan combined with proceeds from an initial public offering of American depositary shares will refinance mezzanine debt, the source added.

Expro is a U.K.-based provider of well flow management services to the oil and gas industry.

Goodpack on deck

Goodpack scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch an $835 million senior credit facility that consists of a $115 million revolver, a $520 million seven-year first-lien covenant-light term loan and a $200 million eight-year second-lien covenant-light term loan, according to market sources.

Commitments are due on Aug. 4, sources said.

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

Proceeds will be used to help fund the buyout of the company by KKR.

Goodpack is a Singapore-based operator of a fleet of nestable and collapsible intermediate bulk containers.

MSX coming soon

MSX International set a bank meeting for 10 a.m. ET on Wednesday to launch a $255 million credit facility, according to a market source.

The facility consists of a $35 million revolver and a $220 million term loan B, the source said.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

MSX International is a technology service provider helping automotive and other organizations improve retail network performance, talent acquisition and management strategies.

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