Gemini HDPE, Continental Building Products break; Varsity Brands moves up deadline

By Sara Rosenberg

New York, Dec. 5 – Gemini HDPE LLC set the spread on its term loan at the wide end of talk before freeing up for trading on Tuesday, and Continental Building Products Operating Co. LLC’s term loan surfaced in the secondary as well.

In more loan happenings, Varsity Brands Inc. accelerated the commitment deadline on its first-lien term loan.

Also, VICI Properties Inc., Hyperion Insurance Group Ltd., Darling Ingredients Inc., Go Wireless, Glass Mountain Pipeline Holdings LLC, MB Aerospace Holdings II Corp., Oxbow Carbon LLC, Nomad Foods Ltd., Jeld-Wen Inc., CIBT and TKC Holdings Inc. disclosed price talk with launch.

Furthermore, AC Ocean Walk LLC, Indivior Finance, Hi-Crush Partners LP and Mister Car Wash emerged with new deal plans.

Gemini updated, trades

Gemini HDPE firmed pricing on its $406 million senior secured term loan B (Ba2/BB) due Aug. 7, 2024 at Libor plus 250 basis points, the high end of the Libor plus 225 bps to 250 bps talk, and left the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

With final terms in place, the term loan broke for trading and levels were seen at par 1/8 bid, par ½ offered, a trader added.

Barclays is leading the deal that will be used to amend an existing term loan B.

Closing is expected on Friday.

Gemini HDPE is a bimodal, high-density polyethylene plant in Texas.

Continental Building frees up

Continental Building Products’ $270 million covenant-light first-lien term loan (Ba3/BBB-) due August 2023 also hit the secondary market, with levels quoted at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan is Libor plus 225 bps with a 25 bps step-down and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Continental Building is a Herndon, Va.-based manufacturer of wallboard and gypsum-based products.

Varsity accelerated

Back in the primary market, Varsity Brands moved up the commitment deadline on its $1,125,000,000 seven-year first-lien term loan (B1/B) to 4 p.m. ET on Wednesday from Friday, a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company is also getting a $500 million privately placed eight-year second-lien term loan that has call protection of 102 in year one and 101 in year two.

Jefferies LLC, Barclays and Cowen are leading the deal that will be used to repay existing debt.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

VICI reveals guidance

VICI Properties’ bank meeting took place on Tuesday and talk on its $2.35 billion seven-year first-lien term loan surfaced at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 31 to 60 and the full margin from day 61 to 90, according to a market source.

The $2.75 billion of senior secured credit facilities (Ba3/BB+) also include a $400 million revolver.

Commitments are due on Dec. 15, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used with additional equity to refinance the company’s existing first-lien term loan and first-lien notes, to repurchase existing mezzanine debt and for the acquisition of Harrah’s Las Vegas Hotel and Casino from Caesars Entertainment Corp. for about $1.14 billion.

Closing is expected this month.

VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.

Hyperion terms emerge

Hyperion Insurance Group held its lender call during the session and, with the event, talk on its roughly $1.33 billion equivalent of senior secured credit facilities (B2/B) was released, a market source remarked.

Talk on the £125 million five-year revolver is Libor plus 350 bps with a 0% Libor floor, talk on the $925 million seven-year covenant-light term loan B is Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the €200 million seven-year covenant-light term loan B is Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99.5, the source continued.

The term loans are also talked with a 25 bps pricing step-down at first-lien net leverage of 4.25 times or lower, and 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on Dec. 15, the source added.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities plc, RBC Capital Markets, HSBC Securities (USA) Inc., Lloyds Securities Inc., NatWest Markets and ING Capital LLC are leading the deal that will be used by the London-based insurance intermediary group to refinance existing debt, to fund near-term acquisitions, to fund the Lockbox Account, for general corporate purposes and to pay related fees and expenses.

Darling holds call

Darling Ingredients disclosed talk of Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $525 million seven-year covenant-light term loan B (Ba1/BBB-) that launched with a morning lender call, according to a market source.

Commitments are due at noon ET on Friday.

BMO Capital Markets, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance an existing term loan B.

Darling is an Irving, Texas-based developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients.

Go Wireless launches

Go Wireless came out with talk of Libor plus 600 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $400 million senior secured term loan that launched with a morning bank meeting, a market source said.

Commitments are due on Dec 14, the source added.

UBS Investment Bank is leading the deal, which will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Go Wireless is a Verizon authorized retailer.

Glass Mountain sets talk

Glass Mountain Pipeline released talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $300 million seven-year term loan B in connection with its morning lenders’ presentation, a market source remarked.

The company’s $325 million of senior secured credit facilities (B2/B) also include a $25 million five-year revolver.

Commitments are due at noon ET on Dec. 15, the source added.

Morgan Stanley Senior Funding and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Glass Mountain by BlackRock Inc.’s Global Energy and Power Infrastructure Fund, in partnership with Navigator Energy Services, from SemGroup Corp. and NGL Energy Partners LP.

Closing is expected this quarter, subject to governmental approvals and other customary conditions.

Glass Mountain is a midstream asset consisting of a fully integrated, roughly 260-mile crude transportation system linking the Stack, Mississippi Lime and Granite Wash plays to Cushing, Okla.

MB Aerospace guidance

MB Aerospace had its bank meeting in the morning and announced talk on its $255 million seven-year covenant-light first-lien term loan at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $305 million of secured credit facilities (B2/B) also include a $50 million five-year revolver.

Commitments are due on Dec. 15, the source said.

RBC Capital Markets, Societe Generale, Barclays and Citizens Bank are leading the deal that will be used to fund the acquisition of Taiwan-based Asian Compressor Technology Services Co. Ltd. and to refinance existing debt.

Closing is expected in January.

MB Aerospace, a Blackstone portfolio company, is an East Granby, Conn.-based provider of advanced technological solutions to the aerospace and defense industry.

Oxbow Carbon launches

Oxbow Carbon set price talk on its $575 million covenant-light first-lien term loan B (BB-) and $175 million covenant-light second-lien term loan (B) with its lender meeting, according to a market source.

Talk on the first-lien term loan is 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 one year, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 98.5 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Commitments are due at noon ET on Dec. 14.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, PNC, Rabobank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

Nomad discloses terms

Nomad Foods revealed price talk on the repricing of its existing $610 million term loan due May 15, 2024 and existing €500 million term loan due May 15, 2024, and on its new €100 million equivalent U.S. and euro incremental term loan due May 15, 2024 with its lender call, a market source remarked.

The U.S. debt is talked at Libor plus 225 bps with a 0% Libor floor and the euro debt is talked at Euribor plus 275 bps with a 0% floor, the source continued. The repricing of the existing loans is offered at par, and the incremental loan is talked with an original issue discount of 99.75, an availability period of 60 days and a ticking fee of half the spread from days 31 to 60. All of the term loans have 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on Dec. 13 for the U.S. loan and at noon UK time on Dec. 13 for the euro loan, the source added.

Goldman Sachs, Credit Suisse, UBS and Deutsche Bank are leading the deal, with Goldman the left lead on the U.S. debt and Credit Suisse the left lead on the euro debt.

The repricing will take the U.S. term loan down from Libor plus 275 bps with a 0% Libor floor and the euro term loan down from Euribor plus 300 bps with a 0% floor, and the incremental loan will be used for general corporate purposes, including potential future acquisitions.

Nomad Foods is a Feltham, England-based frozen foods company.

Jeld-Wen loan talk

Jeld-Wen released talk of Libor plus 200 bps to 225 bps with a 25 bps step-down at Ba2/BB corporate ratings, a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $440 million covenant-light term loan B (Ba2/BB+) due December 2024 that launched with a lender meeting during the session, a market source said.

Current corporate ratings are Ba3/BB-.

Commitments are due at noon ET on Thursday.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with $400 million of senior notes due 2025, $400 million of senior notes due 2027 and cash on hand to refinance an existing term loan.

The company is also seeking amendments to its asset-based revolver to extend the maturity date to December 2022, reduce pricing and make adjustments to the borrowing base and collateral.

Wells Fargo is the administrative agent for the revolver.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

CIBT details surface

CIBT launched on its call a $339.2 million covenant-light first-lien term loan at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Monday, the source said.

Antares Capital is leading the deal that will be used to refinance an existing first-lien term loan, and the additional $10 million in proceeds will be used to repay a portion of the company’s current revolver borrowings.

CIBT, a Kohlberg & Co. portfolio company, is a McLean, Va.-based provider of mobility solutions, offering expedited visa, work permit, immigration, passport and other related value-added services.

TKC floats OIDs

TKC held its lender call, launching its $60 million incremental first-lien term loan due February 2023 with original issue discount talk of 99.75 and its $45 million incremental second-lien term loan due February 2024 with discount talk of 99.5, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 425 bps with a 1% Libor floor and the debt is getting 101 soft call protection for six months, and pricing on the incremental second-lien term loan is Libor plus 800 bps with a 1% Libor floor.

Commitments are due on Friday, the source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund a distribution to shareholders. Jefferies is the left lead on the first-lien and KKR is the left lead on the second-lien.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry, and a provider of in-room coffee service to hotels and motels.

AC Ocean joins calendar

Also in the primary market, AC Ocean Walk scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch $250 million in term loans, according to a market source.

The debt consists of a $175 million five-year first-lien term loan and a $75 million 5.5-year second-lien term loan.

Talk on the first-lien term loan is Libor plus 800 bps with a 1% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two, and talk on the second-lien term loan is 12% PIK toggle based on a leverage grid, a discount of 99 and call protection that is still to be announced, the source continued.

Commitments are due at 5 p.m. ET on Dec. 14.

Deutsche Bank Securities Inc. is leading the deal that will be used to finance the acquisition and re-opening of the Atlantic City, N.J. casino resort (AC Ocean Walk) formerly known as Revel Atlantic City.

Indivior readies deal

Indivior set a lenders’ presentation for 10 a.m. ET on Wednesday to launch a $394.9 million senior secured term loan B and a €76.3 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Chase Bank are leading the deal that will be used to refinance the company’s existing senior secured debt facilities.

Indivior is a Richmond, Va.-based specialty pharmaceutical company.

Hi-Crush on deck

Hi-Crush Partners will hold a lenders’ presentation at 2 p.m. ET on Wednesday to launch a $200 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due 2021.

Hi-Crush is a Houston-based producer, transporter, marketer and distributor of premium frac sand.

Mister Car coming soon

Mister Car Wash set a lender call for Wednesday afternoon to launch a $20 million add-on term loan and a repricing amendment, according to a market source.

Jefferies LLC is leading the deal.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

Dealogic reveals deadline

In other news, Dealogic (I-Logic Technologies Bidco Ltd.) set a commitment deadline of Dec. 15 for its $360 million seven-year term loan and €250 million seven-year term loan, a market source remarked.

The loans, which launched with a bank meeting on Monday, are talked at Libor/Euribor plus 400 bps with a 1% floor, an original issue discount of 99.5 and 101 soft call for six months.

UBS Investment Bank is leading the deal that will be used to help fund a recapitalization in connection with the acquisition by ION Investment Group of a controlling stake in the company.

As part of the transaction, the Carlyle Group and management are retaining significant ownership in Dealogic.

Closing is expected this quarter, subject to customary approvals.

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

Wheelabrator timing

Wheelabrator Technologies Inc. (Granite Acquisition Inc.) is asking for commitments by Monday for its incremental $125 million term loan C due December 2021, repricing of its existing $48 million term loan C due December 2021 and repricing of its existing $1.21 billion term loan B due December 2021, a market source remarked.

As previously reported, talk on the term loans is Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months. The incremental loan is talked with a discount of 99.5 and the repricings are offered at par.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that launched with a call on Monday.

The incremental loan will be used to fund letters of credit and the repricings will take the existing term loan B and C debt down from Libor plus 400 bps with a 1% Libor floor.

Wheelabrator amendment

Wheelabrator is also seeking an amendment to its existing $247 million second-lien term loan due December 2022 for which lenders are offered a 5 bps consent fee and 101 soft call protection for six months.

The amendment will change the accordion free and clear basket shared between the first-and second-lien term loans to $150 million from $350 million, add a 1.1 times minimum debt service coverage ratio covenant, and make the capital structure portable with a change-of-control subject to ratings reaffirmation.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

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