Tecomet, Trade Me free to trade; Duff, Capstone, Duravant, Cook & Boardman set talk

By Sara Rosenberg

New York, Feb. 25 – Tecomet (TecoStar Holdings Inc.) increased the size of its incremental first-lien term loan before breaking for trading on Tuesday, and Trade Me Group Ltd.’s (Titan Acquisitionco) term loan hit the secondary market as well.

In more happenings, Duff & Phelps, Capstone Logistics Acquisition Inc., Duravant LLC (Engineered Machinery Holdings Inc.) and Cook & Boardman Group disclosed price talk with launch.

Tecomet upsized, trades

Tecomet lifted its fungible incremental first-lien term loan due May 1, 2024 to $165 million from $135 million, according to a market source.

The incremental term loan is priced at Libor plus 350 basis points with a step-down to Libor plus 325 bps at 4x net first-lien leverage, a 1% Libor floor and an original issue discount of 99.5.

Commitments were due at 2 p.m. ET on Tuesday and the incremental loan began trading later in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Jefferies LLC, Antares Capital and KKR Capital Markets are leading the deal that will be used to fund a shareholder distribution.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

Trade Me breaks

Trade Me Group’s $602 million first-lien term loan (B1/B) due May 2026 began trading too, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the high end of the Libor plus 375 bps to 400 bps talk.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps.

Trade Me is an operator of online classified marketplaces for motor vehicles, property and jobs in New Zealand.

Duff & Phelps guidance

Back in the primary market, Duff & Phelps held its New York bank meeting on Tuesday and announced talk on its $1.225 billion seven-year first-lien term loan and €300 million seven-year first-lien term loan at Libor/Euribor plus 350 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s roughly $1.75 billion equivalent of credit facilities (B2/B-) also include a $200 million revolver.

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

Goldman Sachs Bank USA, UBS Investment Bank, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Stone Point Capital Markets, KKR Capital Markets, Capital One and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $450 million of other secured debt to help fund the buyout of the company by Stone Point Capital and Further Global from the Permira funds for $4.2 billion. Permira will continue to hold a significant stake in the company.

Closing is expected in the second quarter.

Duff & Phelps is a New York-based independent adviser.

Capstone proposed terms

Capstone Logistics came out with price talk of Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99.5 on its $395 million seven-year first-lien term loan B (B3/B-) that launched with a morning bank meeting, a market source said.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on March 6.

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

Capstone is a Peachtree Corners, Ga.-based third-party logistics company.

Duravant reveals talk

Duravant launched on its call its $155 million incremental first-lien term loan due July 2024 with original issue discount talk of 99.5, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor.

The company is also getting a $50 million incremental revolver.

Commitments are due at 2 p.m. ET on March 3, the source added.

Jefferies LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Antares Capital, Societe Generale and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition Woodside Electronics Corp., a manufacturer of optical color and defect sorting equipment.

Duravant is a Downers Grove, Ill.-based automation solutions platform providing highly engineered equipment and related aftermarket parts and services.

Cook & Boardman launches

Cook & Boardman held a lender call at 3 p.m. ET on Tuesday to launch $75 million of term loan debt, split between a fungible $50 million incremental first-lien term loan due October 2025 and a $25 million delayed-draw term loan due October 2025, a market source remarked.

The term loan debt is priced at Libor plus 575 bps with a 1% Libor floor, in line with the company’s existing term loan, and is talked with an original issue discount of 99 and 101 soft call protection for six months, the source added.

Responses of interest are due on Friday.

Goldman Sachs Bank USA is leading the deal will be used for mergers and acquisitions, and to refinance existing debt.

Cook & Boardman is a Winston-Salem, N.C.-based provider of commercial and architectural door services including specification, design, commercial door repair and installation.

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