Expro, Packaging Coordinators, Bowlmor AMF, Preferred Proppants break; Ocwen, Hertz retreat

By Sara Rosenberg

New York, Aug. 12 – Expro Oilfield Services plc reduced its term loan B size, firmed the spread and original issue discount at the wide end of revised talk, extended the call protection and freed up for trading on Tuesday, and Packaging Coordinators Inc., Bowlmor AMF Corp. and Preferred Proppants (Preferred Sands LLC) broke as well.

Also in the secondary market, Ocwen Financial Corp.’s term loan softened following news that a restatement of recent financial results is necessary, and Hertz Corp.’s term loans were a bit weaker as the company revealed that it will be unable to file its quarterly report by the deadline.

In other happenings, Charter Communications Operating LLC tightened the offer price on its term loan G, and Bioplan/Arcade Marketing lifted pricing on its first- and second-lien term loans and adjusted original issue discounts.

Additionally, Safe-Guard (SG Acquisition Inc.) increased pricing and added a covenant to its term loan, and NGB Home widened spread and original issue discounts on its first- and second-lien term loans, sweetened the first-lien call protection and upsized its revolver.

Furthermore, MSX International raised the spread and extended the call premium on its term loan B, and Medley LLC increased pricing on its term loan, modified the call protection and shortened the maturity.

Expro reworked, trades

Expro Oilfield trimmed its covenant-light term loan B to $1.3 billion from $1,435,000,000, according to a market source. Originally, the company was planning a $1.16 billion funded term loan and a $360 million covenant-light delayed-draw term loan, but earlier in syndication, the delayed-draw loan was eliminated and the funded loan size was revised.

When the delayed-draw loan was eliminated, investor-friendly changes were made to the debt incurrence and restricted payments terms, and the MFN sunset was terminated.

In addition, pricing on the term loan B firmed at Libor plus 475 basis points, the wide end of revised talk of Libor plus 450 bps to 475 bps and up from initial talk of Libor plus 375 bps to 400 bps, the original issue discount was set at 98½, the high end of the revised 98½ to 99 talk and wide of initial talk of 99, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor and a step-down by 25 bps at 4 times net total leverage.

With final terms set, the B loan broke for trading on Tuesday, and levels were seen at 99¼ bid, 99¾ offered, the source continued.

Expro getting revolver

Along with the term loan B, Expro’s now $1.55 billion credit facility also includes a $250 million revolver.

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 will be used to refinance the company’s 8½% secured notes due 2016 and mezzanine debt, and as a result of the term loan downsizing, a little less mezzanine debt will be taken out, the source added.

Expro is a Reading, England-based provider of highly specialized well flow management services to the oil and gas industry.

Packaging Coordinators frees up

Packaging Coordinators’ credit facility also made its way into the secondary market, with the $355 million seven-year first-lien term loan seen at 99 5/8 bid, par 1/8 offered and the $105 million eight-year second-lien term loan seen at 99 bid, par offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $340 million, pricing was lifted from Libor plus 400 bps, the discount widened from 99½ and the call protection was extended from six months, and the second-lien term loan was downsized from $120 million and pricing was flexed from talk of Libor plus 725 bps to 750 bps.

Packaging Coordinators leads

RBC Capital Markets LLC, Deutsche Bank Securities Inc. and GE Capital Markets are leading Packaging Coordinators’ $510 million credit facility, which also includes a $50 million five-year revolver.

Proceeds will be used to refinance existing debt and to partially fund the acquisition of a related business.

Packaging Coordinators is a provider of commercial packaging and clinical trial services for the pharmaceutical industry.

Bowlmor upsizes, breaks

Bowlmor AMF increased its seven-year first-lien term loan to $410 million from $400 million, and kept pricing at Libor plus 625 bps with a 1% Libor floor and an original issue discount of 98½, a market source said. There is still 101 soft call protection for two years.

Last week, pricing on the term loan was lifted from talk of Libor plus 525 bps to 550 bps, the discount moved from 99 and the call protection was extended from one year.

The company’s now $440 million credit facility (B) also includes a $30 million revolver.

Recommitments were due at noon ET and with terms firmed up, the deal freed up for trading in the afternoon and levels were seen at 99½ bid, par ½ offered, a trader remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used with a sale-leaseback on a significant pool of real estate to fund the $270 million acquisition of Brunswick Corp.’s bowling business and to refinance existing debt.

Bowlmor AMF is a New York City-based operator of bowling centers.

Preferred Proppants tops OID

Preferred Proppants’ $350 million six-year first-lien term loan (B3/B+) also began trading during the session, with the debt seen at 99¾ bid, a trader said.

Pricing on the term loan is Libor plus 575 bps, after firming at the low end of the Libor plus 575 bps to 600 bps talk. There is a 1% Libor floor and 101 hard call protection for 24 months, and the debt was sold at a discount of 99.

Jefferies Finance LLC and KKR Capital Markets are leading the loan that will be used with equity to refinance the company’s entire capital structure.

Preferred Proppants is a Radnor, Pa.-based supplier of frac sand.

Ocwen slides

Also in trading, Ocwen’s term loan B dropped to 98½ bid, 99 offered from 99¼ bid, 99¾ offered after the company said that it will need to restate its financial statements for the fiscal year ended Dec. 31, 2013 and the quarter ended March 31, 2014, according to a trader.

Based on preliminary evaluations, the company anticipates that the impact of the adjustments will result in an increase in pre-tax income for the year ended Dec. 31, 2013 of about $17 million and a reduction in pre-tax income in the first quarter of 2014 by a corresponding amount.

Ocwen is an Atlanta-based financial services holding company that is engaged in the servicing and origination of mortgage loans.

Hertz softens

Hertz’ term loan B-1 fell to 99 1/8 bid, 99 5/8 offered from 99 3/8 bid, 99 7/8 offered and its term loan B-2 dipped to 98 1/8 bid, 98 5/8 offered from 98½ bid, 99 offered, according to a trader.

Early in the day, the company said in a NT 10-Q filed with the Securities and Exchange Commission that it is unable to meet the Thursday deadline for filing its quarterly report for the period ended June 30 due to the previously announced review of its internal financial records for fiscal years 2011, 2012 and 2013 and the potential impact that review will have on 2014 financial results.

The company also disclosed that it won’t be able to file the report within the five day extension provided by Rule 12b-25(b).

Hertz is a Park Ridge, N.J.-based auto and equipment rental company.

Charter adjusts OID

Back in the primary, Charter Communications’ modified the original issue discount on its $3.5 billion senior secured seven-year first-lien term loan G to 99½ from 99, according to a market source.

Pricing on the loan is still Libor plus 350 bps with a 0.75% Libor floor and there is still 101 soft call protection for one year.

Recommitments were due at noon ET on Tuesday, the source said.

Previously, the deal was revised from a $3.2 billion six-year term loan G talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99½ and 101 soft call protection for six months, and a $4.2 billion seven-year term loan H talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a discount of 99 and 101 soft call protection for six months.

Closing is expected in early to mid-September.

Charter funding acquisition

Proceeds from Charter’s loan, led by Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc., will be used to fund the purchase 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 the receipt of Hart-Scott-Rodino, FCC and other required regulatory approvals, Charter shareholder approval and various other matters.

Following the close of the Comcast-Time Warner Cable merger, Charter will buy systems serving about 1.4 million of the prior Time Warner Cable video customers for an estimated value of $7.4 billion based on projected 2014 EBITDA.

Furthermore, Charter will own through the issuance of stock to Comcast shareholders, about 33% of the new publicly traded cable provider (SpinCo) to be spun off by Comcast serving about 2.5 million customers, and Comcast shareholders will own about 67% of SpinCo.

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

Bioplan tweaks deal

Bioplan/Arcade Marketing changed pricing on its $375 million seven-year first-lien covenant-light term loan (B2/B+) to Libor plus 450 bps from talk of Libor plus 400 bps to 425 bps and modified the original issue discount to 98½ from 99, according to a market source.

In addition, pricing on the $145 million eight-year second-lien covenant-light term loan (Caa2/B-) was revised to Libor plus 800 bps from talk of Libor plus 750 bps to 775 bps and the discount widened to 98 from 99, the source said.

As before, both term loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The term loans also have a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Bioplan/Arcade merging

Proceeds from Bioplan/Arcade Marketing’s $585 million credit facility, which also includes a $65 million revolver (B2/B+), will be used to fund the merger of the two companies.

Under the agreement, Oaktree, the current owner of Bioplan, will retain a 75% ownership interest and KKR/DLJ Merchant, the current owner of Arcade Marketing, will retain a 25% ownership interest in the combined company.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the credit facility, with Goldman the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

Closing is expected by the beginning of the fourth quarter, subject to customary conditions and regulatory reviews.

Bioplan is a provider of unit-dose sampling and promotional turnkey services. Arcade Marketing is a New York-based provider of sampling services for the fragrance, cosmetics and skincare segments.

Safe-Guard modifies loan

Safe-Guard flexed pricing up on its $210 million seven-year first-lien term loan to Libor plus 525 bps from Libor plus 500 bps and added a maximum total net leverage covenant to the previously covenant-light loan, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company’s $225 million credit facility (B3/B) also includes a $15 million revolver.

Commitments were due at 5 p.m. ET on Tuesday, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used by the specialty insurance company to refinance existing debt.

NGB changes emerge

NGB Home raised pricing on its $200 million first-lien term loan to Libor plus 500 bps from Libor plus 425 bps, widened the offer price to 99 from 99½ and pushed out the 101 soft call protection to one year from six months, while leaving the 1% Libor floor intact, according to a market source.

In addition, pricing on the $90 million second-lien term loan was modified to Libor plus 925 bps from talk of Libor plus 825 bps to 850 bps and the discount moved to 98½ from 99, but the 1% Libor floor and call protection of 102 in year one and 101 in year two were unchanged, the source said.

Furthermore, the company upsized its revolver to $35 million from $30 million.

Recommitments are due on Wednesday morning, the source added.

GE Capital Markets and Jefferies Finance LLC are leading the now $325 million credit facility that will be used to help fund Nielsen Bainbridge Inc.’s acquisition of the Home Decor Cos.

Nielsen Bainbridge is an Austin, Texas-based designer, manufacturer and marketer of products for the custom and ready-made framing market. Post-acquisition, the company will be renamed NGB Home.

MSX flexes higher

MSX International lifted pricing on its $220 million term loan B to Libor plus 500 bps from talk of Libor plus 425 bps to 450 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The 1% Libor floor and original issue discount of 99 on the term loan were unchanged.

The company’s $255 million credit facility also includes a $35 million revolver.

Recommitments are due at noon ET on Wednesday, 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 service and technology provider helping automotive and other organizations improve retail network performance, talent acquisition and management strategies.

Medley revises loan

Medley widened pricing on its $100 million first-lien term loan to Libor plus 550 bps from Libor plus 500 bps, changed the call protection to non-callable for two years on 70% of the term loan and no call protection on the remaining 30%, from a 101 soft call for six months, and shortened the maturity to 4¾ years from six years, a market source remarked.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Medley is a New York-based asset management firm.

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