Houston Fuel, CCM Merger, Miller Heiman break; Orbotech, Abercrombie & Fitch revise deals

By Sara Rosenberg

New York, July 31 – Houston Fuel Oil Terminal Co.’s (HFOTCO LLC) credit facility made its way into the secondary market on Thursday with the term loan seen above its original issue discount, and CCM Merger Inc. (MotorCity Casino Hotel) and Miller Heiman freed up, too.

Also, Orbotech Ltd. raised pricing on its term loan, revised the original issue discount and extended the call protection, and Abercrombie & Fitch Co. downsized its term loan B and increased the spread as well as the Libor floor.

In addition, St. George’s University accelerated the commitment deadline on its credit facility, and Blackboard Inc. removed its term loan B-4 from market.

Furthermore, Charter Communications Operating LLC, Cole-Parmer Instrument Co. (CPI Buyer LLC) and Golden State Medical Supply disclosed talk with launch, and BWAY Holding Co. and Acosta Sales & Marketing are readying new deals.

Houston Fuel frees up

Houston Fuel Oil Terminal’s credit facility began trading on Thursday, with the $550 million seven-year covenant-light term loan B quoted at 99 5/8 bid, par 1/8 offered, according to a trader.

Pricing on the B loan is Libor plus 325 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, pricing on the term loan B firmed at the low end of the Libor plus 325 bps to 350 bps talk and the discount tightened from 99.

The company’s $625 million senior secured credit facility (Ba2/BB-) also includes a $75 million five-year revolver priced at Libor plus 300 bps with no Libor floor and issued at par.

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

Houston Fuel (formerly Buffalo Gulf Coast Terminals LLC), a Houston-based marine terminal for storage of residual fuel oil and crude oil, expects to close on the new credit facility in mid-August.

CCM tops OID

CCM Merger’s $490 million seven-year senior secured term loan B (B+) also emerged in the secondary, with levels seen at 99½ bid, 99¾ offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99¼. There is 101 soft call protection for one year.

Recently, pricing on the loan was decreased from Libor plus 375 bps, the discount was changed from 99½ and the call protection was extended from six months.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing senior credit facility debt.

CCM Merger is the operator of MotorCity Casino, a multi-story gaming, hotel, dining convention/conference and entertainment facility near downtown Detroit.

Miller Heiman breaks

Miller Heiman’s $136 million add-on term loan began trading as well, with levels quoted at 98 bid, 98½ offered, a source remarked.

The add-on loan is priced at Libor plus 575 bps with a 1% Libor floor and was sold at a discount of 98, after widening during syndication from 99.

GE Capital Markets is leading the deal that will be used to fund the acquisition VitalSmarts.

Miller Heiman is a Denver-based provider of corporate sales training.

Cactus holds steady

Also in trading, Cactus Wellhead LLC’s $275 million six-year first-lien covenant-light term loan was quoted at 98½ bid, 99½ offered, in line with where it broke on Wednesday, a source remarked.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor and it was issued at a discount of 98. There is call protection of 102 in year one and 101 in year two with a carve-out for initial public offering proceeds.

During syndication, the term loan was downsized from $350 million, the spread was lifted from Libor plus 450 bps, the discount widened from 99 and the call protection was sweetened from a 101 soft call for one year.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Cactus Wellhead is a Houston-based provider of wellhead services.

Orbotech reworks loan

Over in the primary, Orbotech lifted pricing on its $300 million six-year covenant-light term loan B (B1/B+) to Libor plus 400 bps from Libor plus 375 bps, moved the original issue discount to 99 from the 99½ area and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to fund the roughly $370 million acquisition of SPTS Technologies Group Ltd., a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry, from Bridgepoint and others.

Closing is expected in the third quarter, subject to certain conditions.

Total leverage is around 2.9 times and net total leverage is around 1.7 times.

Orbotech is a Yavne, Israel-based provider of yield-enhancing and production services, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components.

Abercrombie modifies deal

Abercrombie & Fitch trimmed its seven-year term loan B to $300 million from $325 million, raised pricing to Libor plus 375 bps from Libor plus 350 bps, changed the Libor floor to 1% from 0.75% and eliminated the 18-month MFN sunset provision, according to a market source.

As before, the term loan B has 101 soft call protection for six months.

The company’s now $700 million credit facility also includes a $400 million five-year asset-based revolver.

Wells Fargo Securities LLC, PNC Capital Markets LLC, J.P. Morgan Securities LLC and Goldman Sachs Lending Partners are leading the term loan B, and Wells Fargo, PNC and JPMorgan are leading the revolver.

Proceeds will be used by the New Albany, Ohio-based retailer of casual apparel to refinance an existing credit facility that includes a $350 million unsecured revolver due July 27, 2016 and a $131.5 million term loan A due Feb. 23, 2017 and for general corporate purposes, including potential share repurchases.

St George’s moves deadline

St. George’s University moved up the commitment deadline on its $275 million credit facility to 5 p.m. ET on Friday from Monday, a market source remarked.

The facility consists of a $25 million revolver, and a $250 million seven-year covenant-light term loan talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used for a recapitalization in connection with an equity investment from new investors.

St. George’s is a Grenada, West Indies-based for-profit medical, veterinary and arts and sciences school.

Blackboard pulls loan

Blackboard removed its term loan B-4 (B+) with a targeted size of $868 million from the primary market, according to a market source.

Talk on the loan was Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, and it was going to be used to reprice an existing $868 million term loan B-3 from Libor plus 375 bps with a 1% Libor floor.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. were leading the deal.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

Charter launches

Also in the primary, Charter Communications revealed price talk on its institutional term loans in connection with its bank meeting on Thursday afternoon, according to a market source.

The $3.2 billion six-year term loan G and $4.2 billion seven-year term loan H are both talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor and 101 soft call protection for six months, the source said. The term G is offered at a discount of 99½ and the term H is offered at a discount of 99.

Commitments are due on Aug. 8, the source added.

The company is also getting a $1 billion incremental term loan A and a $500 million incremental revolver.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the senior secured deal (Ba1/BB+) that will be used to fund the acquisitions of customers and systems from Comcast Corp.

The acquisitions are conditioned on the completion of the merger of Comcast and Time Warner Cable, as well as receipt of Hart-Scott-Rodino, FCC and other required regulatory approvals, Charter shareholder approval, and various other matters.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Cole-Parmer sets talk

Cole-Parmer held its bank meeting in the morning, and shortly before the event kicked off, price talk on its first- and second-lien term loans was announced, according to a market source.

The $240 million seven-year first-lien covenant-light term loan (B2) is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $107 million eight-year second-lien covenant-light term loan (Caa2) is talked at Libor plus 700 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 $367 million credit facility also includes a $20 million revolver (B2).

Commitments are due on Aug. 13.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used with equity to fund the company’s $480 million buyout by GTCR from Thermo Fisher Scientific Inc., which is subject to regulatory approval and other customary closing conditions.

Cole-Parmer is a Vernon Hills, Ill.-based manufacturer and distributor of specialty laboratory equipment, instruments and supplies.

Golden State guidance

Golden State Medical Supply disclosed talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $145 million six-year term loan that launched with a bank meeting during the session, according to a market source.

The company’s $160 million credit facility (B3) also includes a $15 million five-year revolver.

Commitments are due on Aug. 14, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Golden State Medical is a Camarillo, Calif.-based supplier of pharmaceuticals and emergency medical supplies.

BWAY coming soon

BWAY Holding set a lender call for 11 a.m. ET on Friday to launch a $1.1 billion six-year term loan B (B2/B-), according to a market source.

Bank of America Merrill Lynch is leading the deal that will be used with $770 million of senior notes due 2021 to repay an existing term loan, redeem opco notes, parent company notes and intermediate notes, and pay a special $200 million dividend to the shareholders.

The company said in a news release that it plans to amend its existing asset-based revolver to facilitate the transactions.

BWAY is an Atlanta-based supplier of general line rigid containers.

Acosta on deck

Acosta Sales & Marketing set a call for Monday to launch a $2.29 billion credit facility, according to a market source.

The facility consists of a $225 million five-year revolver and a $2,065,000,000 seven-year term loan, the source said.

J.P. Morgan Securities LLC, Goldman Sachs and Morgan Stanley are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group from Thomas H. Lee Partners LP, and GIC, which is an investor in Acosta, will re-invest in the company.

Closing is expected in the third quarter.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer goods industry.

Osum closes

In other news, Osum Production Corp. completed its acquisition of Orion Oil Sands Project from Shell Canada for C$325 million, a news release said.

For the transaction, Osum got a new $210 million six-year senior secured first-lien term loan (B3/B+) priced at Libor plus 550 bps with a 1% Libor floor and sold at an original issue discount of 98½. There is soft call protection of 102 in year one and 101 in year two.

During syndication, pricing on the term loan was increased from Libor plus 500 bps and the discount widened from 99.

Barclays and Goldman Sachs Bank USA led the deal.

Osum Production, an indirectly wholly owned subsidiary of Osum Oil Sands Corp., a Calgary, Alta.-based private oil sands company, has secured and total leverage of 2.7 times.

Ferro completes deal

Ferro Corp. closed on its $500 million credit facility (Ba3/B+) that includes a $200 million five-year revolver and a $300 million seven-year term loan B, according to a news release.

Pricing on the term loan B is Libor plus 325 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, pricing on the term B finalized at the tight end of the Libor plus 325 bps to 350 bps talk, the Libor floor was trimmed from 1% and the call protection was extended from six months.

J.P. Morgan Securities LLC led the deal that was used to refinance existing debt and for general corporate purposes.

Ferro is a Mayfield Heights, Ohio-based supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials.

Hemisphere Media wraps

Hemisphere Media Group Inc. completed its $225 million six-year term loan priced at Libor plus 400 bps with a 1% Libor floor and sold at an original issue discount of 99½, a news release said. The loan has 101 soft call protection for one year.

During syndication, the term loan was upsized from $200 million, pricing firmed at the wide end of the Libor plus 375 bps to 400 bps talk and the call protection was extended from six months.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. were the leads on the deal that was used to refinance existing debt and for general corporate purposes.

Hemisphere Media is a Miami-based Spanish-language media 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.