LMBE, Valeant, Chef’s Warehouse break; Openlink, MSX, GPS updated; Element accelerated

By Sara Rosenberg

New York, Nov. 15 – LMBE-MC HoldCo II LLC (Talen Energy Supply LLC) set the spread on its term loan B at the wide side of talk before freeing up for trading on Thursday, and Valeant Pharmaceuticals International (Bausch Health Cos. Inc.) and Chefs’ Warehouse Inc. broke as well.

In more happenings, Openlink Financial LLC finalized amounts of its U.S. and euro term loans, and MSX International firmed sizes of its U.S. and euro term loans, widened the spread and original issue discount on the U.S. piece, and set pricing on the euro tranche at the high end of guidance.

Also, GPS Hospitality set the spread on its term loan B at the wide side of talk, and Element Solutions (Platform Specialty Products Corp./MacDermid Inc.) accelerated the commitment deadline on its credit facilities.

Furthermore, Atlantic Aviation FBO Inc., CentralSquare Technologies LLC and Corel Corp. released price talk on their loan transactions with launch.

LMBE sets spread, trades

LMBE-MC HoldCo, a subsidiary of Talen Energy, finalized pricing on its $450 million seven-year term loan B at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $475 million of credit facilities (Ba3/BB-) also include a $25 million revolver.

After terms finalized, the B loan emerged in the secondary market, with levels quoted at 99¾ bid, par offered on the break and then it moved up to par bid, par ¼ offered, another source added.

MUFG is leading the deal that will be used by Talen Energy to pay down corporate debt and to fund a maintenance reserve account.

LMBE-MC HoldCo is a 2.3 GW portfolio of power-generation facilities located in Bangor, Pa.

Valeant frees up

Valeant Pharmaceuticals’ $1.5 billion seven-year incremental senior secured term loan B (Ba2/BB-/BB-) began trading too, with levels quoted at 99 bid, 99 3/8 offered, according to a market source.

Pricing on the incremental loan is Libor plus 275 basis points with a 0% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year, amortization of 5% per annum and 50 bps MFN through June 1, 2019.

During syndication, the term loan was upsized from $750 million as the company cancelled plans for a potential secured bond transaction, pricing was lowered from Libor plus 300 bps, the discount firmed at the wide end of the 99 to 99.5 talk and the debt was revised be a stand-alone tranche from a fungible tranche due June 1, 2025.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used with cash on hand to fund a tender offer for 7½% notes due 2021.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Chefs’ Warehouse breaks

Chefs’ Warehouse’s $239.7 million term loan (B2/B+) due June 2022 also freed up, with levels seen at par bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 350 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Openlink updated

Back in the primary market, Openlink Financial set its U.S. term loan size at $255 million, within the revised talk range of $250 million to $300 million and down from initial talk of roughly $343 million, and its euro term loan size at €225 million, within the revised talk range of €200 million to €250 million and up from initial talk of roughly €148 million, a market source said.

The U.S. term loan is priced at Libor plus 475 bps with a step-down to Libor plus 450 bps at less than 3.55 times first-lien net leverage, and the euro term loan is priced at Euribor plus 400 bps with a step-down to Euribor plus 375 bps at less than 3.55 times first-lien net leverage. Both loans have a 1% floor, a par issue price and 101 soft call protection for six months.

On Wednesday, pricing on the U.S. loan was raised from talk in the range of Libor plus 425 bps to 450 bps, pricing on the euro loan was flexed from Euribor plus 375 bps, and the step-down was added to both pieces.

UBS Investment Bank is leading the deal that will refinance an existing U.S. term loan priced at Libor plus 475 bps with a 1% Libor floor and an existing euro term loan priced at Euribor plus 425 bps with a 1% Libor floor.

Openlink is a Uniondale, N.Y.-based provider of trading and risk management solutions.

MSX revised

MSX International firmed the size of its U.S. term loan B-4 due January 2024 at $50 million, compared to prior talk of up to $100 million, raised pricing to Libor plus 475 bps from talk in the range of Libor plus 425 bps to 450 bps and changed the original issue discount to 99.25 from 99.5, according to a market source.

Additionally, the company sized its and its euro term loan B-3 due January 2024 at €498 million, versus talk of a minimum of €454 million, and finalized the spread at Euribor plus 450 bps, the high end of the Euribor plus 425 bps to 450 bps talk, the source said.

Both term loans still have a 0% floor and 101 soft call protection for six months, and the euro term loan still has an original issue discount of 99.75.

The euro term loan B-3 freed to trade during the session and levels were seen at 99¾ bid, par ¼ offered, the source added.

HSBC and Nomura are the physical bookrunners on the deal that will be used to amend and restate senior facilities. RBC and J.P. Morgan are bookrunners, and RBC is the agent.

MSX, a Bain Capital portfolio company, is a business process outsourcing company.

GPS tweaks loan

GPS Hospitality set pricing on its $265 million seven-year term loan B at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, added a financial covenant to the previously covenant-light term loan B and eliminated the MFN sunset, a market source said.

The term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $305 million of credit facilities (B3/B-) also include a $40 million revolver.

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

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt and fund an acquisition.

GPS Hospitality is an Atlanta-based Burger King and Popeyes Louisiana Kitchen franchisee.

Element moves deadline

Element Solutions accelerated the commitment deadline on its $1.08 billion of credit facilities (Ba2/BB) to 5 p.m. ET on Thursday from 5 p.m. ET on Monday, a market source remarked.

The facilities consist of a $330 million revolver and a $750 million seven-year covenant-light first-lien term loan.

Talk on the term loan is Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Nomura, HSBC Securities (USA) Inc., Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance the company’s stand-alone capital structure.

Element is a West Palm Beach, Fla.-based provider of specialty chemical solutions.

Atlantic Aviation guidance

Also in the primary market, Atlantic Aviation FBO launched with a lender meeting on Thursday a $1,025,000,000 seven-year term loan B talked at Libor plus 325 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, market sources said.

The company’s $1,325,000,000 of credit facilities (Ba3/BB) also include a $300 million revolver.

Commitments are due on Nov. 29, sources added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Atlantic Aviation is a Plano, Texas-based provider of aviation services.

CentralSquare floats talk

CentralSquare Technologies held its lender call and announced original issue discount talk of 99.875 to par on its fungible $60 million add-on term loan, according to a market source.

Like the existing $895 million term loan, pricing on the add-on term loan is Libor plus 375 bps with a 0% Libor floor.

Commitments are due at 5 p.m. ET on Monday, the source said.

Antares Capital, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund an acquisition and add cash to the balance sheet.

CentralSquare was formed in September by Bain Capital and Vista Equity Partners via the combination of Tritech Software Systems, Superion and the public sector business of Aptean Software.

The company is a provider of public safety and public administration software.

Corel holds call

Corel hosted a lender call during the session to launch a $90 million add-on term loan talked with an original issue discount of 99.5, a market source remarked.

The add-on term loan is priced at Libor plus 500 bps with a 0% Libor floor, in line with the existing term loan.

Commitments are due on Nov. 27, the source added.

UBS Investment Bank is leading the deal that was launched to existing lenders and will be used to fund an acquisition.

Corel is an Ottawa-based software company.

© 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.