TPF II prices upsized term loan; BBB Industries sets terms; LCDX finishes session unchanged

By Paul A. Harris

Portland, Ore., Sept. 24 – TPF II priced its upsized $1.6 billion Libor plus 450 basis points seven-year term loan B at 99.25, and BBB Industries set pricing on $395 million of term loans.

According to a market source, pricing of Libor plus 450 bps for the TPF II loan was at the low end of the Libor plus 450 bps to 475 bps talk.

The LCDX22 index of bank loan credit default swaps finished the Wednesday session unchanged at 103½ bid, 104 offered, according to a head fund manager.

TPF II discount

The original issue discount on the TPF II term loan B firmed at 99¼, the midpoint of the 99 to 99½ talk, a market source said.

The term loan B, which was upsized from $1.5 billion, has a 1% Libor floor and a 101 soft call protection for one year.

The company’s $1.69 billion senior secured credit facility also includes a $90 million five-year revolver.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and MUFG Union Bank are the lead banks on the deal.

Proceeds will be used to repay existing debt at TPF II LC LLC, TPF II Rolling Hills LLC and Astoria Generating Co. Acquisitions LLC, to fund a distribution to the equity holders and to fund a debt service reserve account.

The dividend to equity holders was increased by $100 million with the term loan upsizing, the source added.

Closing is expected in the week of Sept. 29.

The borrowers are TPF II Power LLC and TPF II Covert Midco LLC.

TPF is an investor in energy and power assets.

Delachaux mulicurrency deal

Delachaux priced its multi-tranche seven-year term loan B, a market source said on Wednesday.

A €335 million tranche priced with a 450 basis points spread to Euribor at 99.5, whilea £85 million tranche priced with a 450 bps spread to Euribor at 99. The $325 million tranche priced with a 400 bps spread to Libor at 99.

Pricing on the U.S. term loan firmed at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps, pricing on the euro term loan was increased to Euribor plus 450 bps from talk of Euribor plus 400 bps to 425 bps, and pricing on the British pound term loan came in line with talk of Libor plus 450 bps, the source said.

Included in the dollar and British pound term loans are a 25 bps step-down in pricing at 3.75 times leverage, and the euro term loan has a 25 bps step-down at 4.25 times leverage.

The U.S. and British pound loans have a 1% floor, which matches earlier talk, and the euro term loan has no floor, versus a previously proposed 1% floor.

In addition, the original issue discount on the U.S. and British pound term loans finalized at 99, the high end of the 99 to 99½ talk, and the discount on the euro loan firmed at 99½, the tight end of the 99 to 99½ talk, the source continued.

The U.S. term loan has 101 soft call protection for six months and amortization of 1% per annum, while the other term loans have no call protection and no amortization.

The company’s credit facility (B+) also includes a €75 million 6½-year revolver.

Deutsche Bank Securities Inc. is the global coordinator on the deal and a bookrunner with Credit Agricole, HSBC and Natixis.

Proceeds will be used to refinance existing debt, to fund a distribution to shareholders and for general corporate purposes.

Delachaux is a French industrial company.

Progrexion first-lien deal

Progrexion's $280 million six-year first-lien term loan (Ba3/B+) priced and allocated, a market source said on Wednesday.

The deal came with a Libor plus 525 basis points spread, a 1% Libor floor at 99 to yield 6.62%.

Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are the leads on the deal, which includes 101 soft call protection for one year, 2.5% amortization per annum and a leverage covenant.

Proceeds will be used to refinance debt.

Progrexion is a provider of credit repair services.

TriMark ups reoffer

TriMark USA Corp. (TMK Hawk Parent Corp.) increased the issue price for its $250 million seven-year first-lien covenant-light term loan to 99.5 from 99, a market source said.

The discount on the $105 million eight-year second-lien covenant-light term loan remained unchanged at 99.

The first-lien term loan is talked at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 750 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 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 company’s $455 million credit facility also provides for a $100 million ABL revolver.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBS Citizens, Deutsche Bank Securities Inc. and Jefferies Finance LLC are the leads on the deal.

Proceeds will be used to back the recently completed buyout of the company by Warburg Pincus from Audax Group.

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

BBB Industries sets pricing

BBB Industries set pricing on $395 million of term loans, a market source said on Wednesday.

A $275 million seven-year first-lien term loan is talked with a Libor spread of 400 to 425 basis points with a 1% Libor floor at 99 and a six-month soft call.

A $120 million eight-year second-lien term loan (Caa1) is talked with a 750 to 775 bps Libor spread with a 1% Libor floor at 99 with hard calls at 102 in year one, 101 in year two.

J.P. Morgan Securities LLC is the lead bank on the deal.

The $465 million credit facility also has a $70 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management LLP.

Closing is expected in the fourth quarter, subject to customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

BBB is a Mobile, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Wheelabrator set bank meeting

Wheelabrator Technologies Inc. set a bank meeting for Tuesday to roll out $1,585,000,000 of term loans, according to a market source.

Included are a $1.25 billion seven-year term loan B, a $75 million seven-year term loan C and a $260 million eight-year second-lien.

Pricing and credit ratings remain to be determined.

Deutsche Bank is the left bookrunner. Barclays and BNP Paribas are the joint bookrunners.

The $1.71 billion credit facility also includes a term loan, $125 million five-year revolver.

Proceeds will be used to help fund the acquisition of Wheelabrator by Energy Capital Partners from Waste Management Inc.

Other funds for the transaction will come from about $500 million in equity.

Waste Management intends to use the net proceeds from the transaction to acquire assets related to its core business, repurchase shares and repay debt.

Closing is expected late this year, subject to Federal Energy Regulatory Commission approval and other customary conditions.

The borrowing entity is special purpose vehicle Granite Acquisition, Inc.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

Access CIG meeting Oct. 1

Access CIG, LLC set a bank meeting to take place on Oct. 1 for $494 million of term loans, according to a market source.

The deal includes a $342 million seven-year first-lien term loan and a $152 million eight-year second-lien term loan.

Pricing and credit ratings remain to be determined.

Joint bookrunner Deutsche Bank is left lead on the first-lien tranche. Joint bookrunner Goldman Sachs is left lead on the second-lien tranche. BofA Merrill Lynch is also a joint bookrunner.

Proceeds will be used to fund the LBO of the company by Berkshire Partners.

Access CIB is a Pleasanton, Calif.-baed provider of records and information management services.

White Birch revises terms

White Birch Paper revised the terms of its $185 million six-year first-lien covenant-light term loan (B2/B+), according to a market source.

The Libor spread increased to 750 basis points from 600 bps.

The discount deepened to 98 from 99.

Call premiums were increased to 103 in year one, 102 in year two and 101 in year three. Previously, the premiums were 102 in year one and 101 in year two.

The 1% Libor floor remains unchanged.

Commitments are due on Oct. 3.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

White Birch Paper is a Greenwich, Conn.-based manufacturer of newsprint, directory paper and paperboard.

American Airlines sets pricing

American Airlines Inc. set pricing on a $750 million seven-year term loan, a market source said on Wednesday.

The deal is talked at Libor plus 325 to 350 bps with a 0.75% Libor floor at 99. It features a 101 soft call for six months, and 1% annual amortization.

Citigroup is the left arranger. BofA Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB, Credit Suisse, Deutsche Bank Securities, Goldman Sachs & Co., J.P. Morgan and Morgan Stanley are joint lead arrangers.

Proceeds will be used for general corporate purposes.

The $1.15 billion credit facility (/BB-/) also includes a $400 million revolver.

American Airlines is a Fort Worth, Texas-based airline company.

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