Samchully Midstream breaks; Bluestem Brands, North American Bancard reveal talk with launch

By Sara Rosenberg

New York, Oct. 14 – Samchully Midstream’s term loan B made its way into the secondary market on Tuesday after experiencing a widening in the spread and original issue discount, and bid levels on the debt were seen right in line with the revised issue price.

In more happenings, Bluestem Brands Inc. and North American Bancard (NAB) launched new loans to investors, Hargray Communications and Citadel Plastics Holdings Inc. joined this week’s calendar, and Vertellus Specialties Inc. revealed a bank meeting date for its term loan B.

Samchully frees up

Samchully’s $300 million seven-year term loan B (B1/B) began trading on Tuesday, with levels quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the loan is Libor plus 475 basis points, after flexing up from talk of Libor plus 400 bps to 425 bps. There is a 1% Libor floor and 101 soft call protection for one year, and the loan was issued at a discount of 98½, following a change from initial talk of 99, a source said.

Bank of America Merrill Lynch is leading the deal that will be used to help fund the acquisition of a 34% interest in Cardinal Gas Services LLC, a midstream company in Ohio’s Utica shale play.

Bluestem sets guidance

Back in the primary, Bluestem Brands hosted its bank meeting in the afternoon, and shortly before the event kicked off, talk on its $300 million seven-year first-lien term loan (B2/B) surfaced at Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, a market source said.

Commitments are due on Oct. 28.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the term loan that will be used with cash on hand and an equal amount of cash invested in Capmark Financial Group Inc. by affiliates of Centerbridge Partners LP through the exercise of warrants to fund the $565 million buyout of the Eden Prairie, Minn.-based online retailer of general merchandise by Capmark.

Along with the term loan, the company expects to get a new $80 million asset-based credit facility led by U.S. Bank.

Closing is expected in the fourth quarter, subject to customary conditions, including compliance with the filing and waiting period requirements under the Hart-Scott-Rodino Act.

NAB holds call

North American Bancard emerged in the morning with plans to hold a call at 2 p.m. ET to launch a fungible $25 million tack-on first-lien term loan due May 20, 2021 talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection through May 2015, according to a market source.

Pricing and call protection on the tack-on are in line with the existing term loan.

Commitments are due at 5 p.m. ET on Oct. 21.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the purchase of Electronic Payment Exchange.

As part of the transaction, existing lenders are being offered a 5 bps amendment fee, the source added.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Hargray coming soon

Also in the primary, Hargray Communications scheduled a conference call for 12:30 p.m. ET on Wednesday to launch a fungible $53 million first-lien tack-on term loan due June 2019 and an amendment to its existing $301 million first-lien term loan due June 2019 that would lift pricing, according to a market source.

Price talk on the tack-on term loan is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99, and the existing loan would be repriced to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, the source said. All of the debt is talked with 101 soft call protection for one year.

Commitments are due on Oct. 22.

Credit Suisse Securities (USA) LLC is leading the deal.

Hargray, a Hilton Head Island, S.C.-based provider of triple-play data, video and voice services, will use the tack-on loan to fund a dividend to shareholders.

Citadel Plastics on deck

Citadel Plastics will hold a bank meeting on Thursday to launch a $430 million credit facility, according to a market source.

The facility consists of a $30 million six-year revolver (BB-), a $300 million six-year first-lien covenant-light term loan B (BB-) and a $100 million seven-year second-lien covenant-light term loan (B-), the source said.

GE Capital Markets and Keybanc Capital Markets are leading the deal that will be used to refinance existing debt and fund an acquisition.

With this transaction, the sponsors, HGGC and Charlesbank Capital, will be converting about $26 million of subordinated debt to contributed equity, the source added.

Citadel Plastics is a Chicago-based provider of plastic composite compounds used in a variety of applications.

Vertellus discloses timing

Vertellus Specialties set a bank meeting for 12:30 p.m. ET on Wednesday to launch its $455 million five-year term loan B, for which timing was previously described as this week’s business, a market source remarked.

Last week, talk on the loan came out at Libor plus 900 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 104 in year one, 102½ in year two and 101 in year three.

Jefferies Finance LLC is leading the deal that will be used to refinance notes and fund an acquisition.

Vertellus is an Indianapolis-based provider of specialty chemicals for the agriculture, nutrition, pharmaceutical and medical, personal care, plastics, coatings and industrial markets.

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