Styrolution, TOMS term loans free to trade; Media General, TransFirst deal revisions surface

By Sara Rosenberg

New York, Oct. 31 – Styrolution (Styrolution Group GmbH and Styrolution US Holding LLC) saw its term loan B emerge in the secondary market on Friday, with both the U.S. and the euro tranche quoted above their original issue discounts, and TOMS’ term loan B began trading too.

Meanwhile, in the primary market, Media General Inc. increased the size of its term loan B-2 as its term loan A was canceled, tightened the original issue discount and removed a financial covenant, and TransFirst Inc. reworked its term loan sizes.

Also, HealthPort (CT Technologies Intermediate Holdings and Smart Holdings Corp.), CareCore National LLC, TierPoint and Lonestar Generation joined the near-term calendar.

Styrolution starts trading

Styrolution’s five-year covenant-light term loan B (B2/B) freed up for trading on Friday, with the $662,550,000 U.S. tranche quoted at 98½ bid, 99½ offered and the €525 million tranche quoted at 98 5/8 bid, 99 5/8 offered, according to a trader.

The term loan B is priced at Libor/Euribor plus 550 basis points with a 1% Libor floor and was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, tranche sizes were finalized from an initial description of a €1.05 billion equivalent loan, with the split of U.S. and euro debt to be determined, pricing was lifted from talk of Libor/Euribor plus 450 bps to 475 bps and the discount was revised from 99.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal, with Barclays the left lead on the U.S. piece and JPMorgan the left lead on the euro piece.

Styrolution junior debt

Along with the term loan B, Styrolution is getting a €200 million second-lien PIK toggle loan that was fully subscribed by Ineos Group Holdings and is priced at 9½% cash/10¼% PIK. There is a mandatory PIK feature if net total leverage is more than 3.25 times.

Proceeds will be used to help fund Ineos’ acquisition of BASF SE’s 50% share in Styrolution so that it becomes a wholly owned standalone company within Ineos, and to redeem Styrolution’s existing 7 5/8% senior secured notes due 2016.

Originally, the company was planning on getting €400 million of junior debt, but when the junior debt was downsized, the company opted to make up the remaining €200 million acquisition consideration with equity contributed by Ineos AG.

Styrolution is a Frankfurt, Germany-based styrenics supplier.

TOMS tops OID

TOMS’ credit facility broke as well, with the $300 million six-year term loan B (B2/B) quoted at 91 bid, 93 offered, a trader remarked.

Pricing on the term loan B is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 90. There is 101 soft call protection for one year.

During syndication, pricing on the B loan was lifted from Libor plus 475 bps, the discount widened from 99 and the call protection was extended from six months.

The company’s $360 million credit facility also includes a $60 million ABL facility.

Jefferies Finance LLC is leading the deal that will help fund the purchase of a 50% interest in TOMS by Bain Capital. The company’s founder and chief shoe giver, Blake Mycoskie, will remain a 50% owner.

Pro forma leverage is about 4.2 times and net leverage is about 4 times.

TOMS is a shoe, eyewear and coffee company that matches every purchase with a charitable donation.

Media General reworks deal

Switching to the primary, Media General raised its term loan B-2 due July 2020 to $825 million from $325 million, modified the original issue discount to 98¾ from 98½ and removed the maximum total net leverage covenant so that the tranche is now covenant-light, according to a market source.

As before, pricing on the term loan B-2 is Libor plus 325 bps with a 1% Libor floor, and there is 101 soft call protection for six months.

In addition, the company upsized its bond offering to $400 million from $300 million.

As a result of the term loan B-2 and bond size changes, the $600 million five-year term loan A that was talked at Libor plus 250 bps with a 50 bps upfront fee was eliminated, the source continued.

The company is still planning on getting a $90 million revolver.

Recommitments for the term loan B-2 were due at 3 p.m. ET on Friday.

Media General lead banks

RBC Capital Markets LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank NA and Capital One are leading the deal that will be used to support the company’s merger with LIN Media LLC.

Under the agreement, shareholders of LIN Media will receive $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN Media shareholders is $763 million. Media General shareholders will receive one share of the new holding company for each share of Media General that they own upon closing.

The new debt will fund the cash payment to LIN Shareholders and refinance certain LIN debt.

Secured leverage is 3.6 times, down from 3.8 times under the initial structure, and total leverage is 5 times.

Closing is subject to customary closing conditions, including the approval of the Federal Communications Commission, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain third-party consents.

Media General is a Richmond, Va.-based local television broadcasting and digital media company. LIN Media is an Austin, Texas-based local multimedia company.

TransFirst retranches

TransFirst upsized its seven-year covenant-light first-lien term loan to $700 million from $665 million and left pricing at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

In addition, the eight-year covenant-light second-lien term loan was downsized to $320 million from $335 million, while pricing remained at Libor plus 800 bps with a 1% Libor floor and a discount of 99, the source continued.

The company’s now $1.07 billion credit facility also includes a $50 million five-year revolver.

Jefferies Finance LLC, Guggenheim and Nomura are leading the deal that will be used with $546 million of equity, cut from $566 million with the first-lien term loan upsizing, to fund the buyout of the Hauppauge, N.Y.-based provider of secure payment processing by Vista Equity Partners.

First-lien net leverage is 4.8 times, up from 4.6 times under the original structure, and total net leverage is 7.2 times, up from 7 times, the source added.

Closing is expected later this year.

HealthPort readies deal

Also on the new deal front, HealthPort emerged with plans to hold a bank meeting at 12:30 p.m. ET on Tuesday to launch a $355 million credit facility, according to a market source.

The facility consists of a $30 million revolver, and a $325 million seven-year first-lien covenant-light term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for six months, the source said.

Commitments are due on Nov. 18.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

HealthPort is an Alpharetta, Ga.-based provider of release of information services for the health-care industry.

CareCore joins calendar

CareCore scheduled a bank meeting for 2 p.m. ET on Wednesday to launch $570 million in new bank debt, comprised of a $35 million revolver and a fungible $535 million add-on term loan B, a market source said.

The add-on term loan B is priced at Libor plus 450 bps with a 1% Libor floor, in line with the existing term loan B, the source said, adding that the original issue discount for the new debt is not yet available.

The existing term loan B was quoted at 98 7/8 bid, 99 3/8 offered in the secondary market on Friday, a trader remarked. Prior to the add-on news, the term loan B was straddling par.

RBC Capital Markets, Fifth Third Bank and GE Capital Markets Inc. are leading the deal that will be used to fund the acquisition of MedSolutions.

CareCore is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations. MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

TierPoint on deck

TierPoint will hold a bank meeting at 2 p.m. ET on Wednesday to launch a $460 million credit facility that consists of a $40 million revolver, a $320 million first-lien term loan and a $100 million second-lien term loan, according to a market source.

RBC Capital Markets and Credit Suisse are leading the deal.

Proceeds will be used with incremental equity from TierPoint’s existing investors as well as a new investor, Ontario Teachers’ Pension Plan, to fund the acquisition of Xand from ABRY Partners.

TierPoint’s current investor group includes Cequel III management led by Chairman Jerry Kent, RedBird Capital Partners, The Stephens Group, Jordan/Zalaznick Advisers Inc. and Thompson Street Capital Partners.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services. Xand is a Hawthorne, N.Y.-based provider of data center, cloud and managed services.

Lonestar coming soon

Lonestar Generation set a call for 1:30 p.m. ET on Monday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Lonestar Generation, which was formerly known as Viva Alamo LLC, is an owner of Texas gas-fired power stations.

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