Peraton frees to trade; Belfor revises add-on loan; Nestle Skin Health price talk surfaces

By Sara Rosenberg

New York, July 1 – Peraton Corp. finalized the original issue discount on its add-on term loan at the tight end of guidance, and then the debt made its way into the secondary market on Monday.

In other happenings, Belfor Holdings Inc. modified the issue price on its add-on term loan B and accelerated the commitment deadline.

Also, Nestle Skin Health disclosed price talk on its U.S. and euro equivalent term loans, and Mannington Mills joined the near-term primary calendar.

Peraton updated, breaks

Peraton set the original issue discount on its fungible $40 million add-on term loan at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

The add-on term loan is priced at Libor plus 525 basis points with a 1% Libor floor.

After terms firmed up, the add-on loan freed to trade and levels were quoted at 99¼ bid, 99¾ offered, the source said.

Macquarie Capital (USA) Inc. is leading the deal that will be used for mergers and acquisitions.

Peraton is a Herndon, Va.-based provider of satellite and terrestrial communications.

Belfor tweaks deal

Belfor Holdings changed the issue price on its fungible $75 million add-on term loan B due April 2026 to par from 99.75, a market source said.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments were due at 5 p.m. ET on Monday, moved up from noon ET on Tuesday, the source added.

Allocations are targeted for Tuesday morning.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of a portfolio of residential service brands.

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

Nestle Skin guidance

Nestle Skin Health held its London bank meeting on Monday and, in connection with the event, announced price talk on its CHF 2.47 billion U.S. dollar equivalent (about $2.53 billion) seven-year covenant-lite first-lien term loan and CHF 1,075,000,000 euro equivalent (about €970 million) seven-year covenant-lite first-lien term loan, according to a market source.

The U.S. equivalent term loan is talked at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99, and the euro equivalent term loan is talked at Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said.

The first-lien term loans have 101 soft call protection for six months.

A bank meeting for U.S. investors will take place at 10 a.m. ET in New York on Tuesday.

Commitments are due at 5 p.m. ET on July 16.

Nestle Skin leads

Credit Suisse, Deutsche Bank, Goldman Sachs, Barclays, BofA Securities Inc., RBC Capital Markets, Mizuho, Credit Agricole, Jefferies LLC and UBS Investment Bank are leading Nestle Skin Health’s financing, with Credit Suisse the left lead on the U.S. loan and Deutsche Bank the left lead on the euro loan.

Along with the first-lien term loans, the company is getting a CHF 500 million revolver, a pre-placed CHF 945 million U.S. dollar equivalent second-lien term loan and a pre-placed CHF 405 million euro equivalent second-lien term loan.

The new debt will be used to help fund the buyout of the company by a consortium led by EQT and ADIA from Nestle SA for an enterprise value of CHF 10.2 billion.

Nestle Skin Health is a Lausanne, Switzerland-based skincare company.

Mannington on deck

Mannington Mills set a bank meeting for July 10 to launch $425 million of credit facilities, a market source remarked.

The facilities consist of a $125 million asset-based revolver and a $300 million seven-year term loan B, the source added.

RBC Capital Markets and SunTrust Robinson Humphrey are leading the term loan, and BofA Securities is the left lead and agent on the revolver.

The credit facilities will be used to refinance existing debt.

Commitments will be due and closing and funding are expected during the week of July 22.

Mannington is a Salem, N.J.-based manufacturer of flooring solutions to customers in both the commercial and residential construction markets.

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