INC Research, Block Communications break; CRC rises; Pabst, Citadel, Norwegian update deals

By Sara Rosenberg

New York, Oct. 30 – Deals from INC Research LLC and Block Communications Inc. freed up for trading on Thursday, and CRC Health Group Inc.’s term loans headed higher on the back of news that the company is being acquired by Acadia Healthcare Co. Inc.

Switching to the primary, Pabst Brewing Co. (Blue Ribbon LLC) set the spread on its first-lien term loan at the high end of talk and on its second-lien term loan at the low end of talk, Citadel Plastics Holdings Inc. shifted some funds between its term loans and updated the spread and call protection on its first-lien tranche, and Norwegian Cruise Line Holdings Ltd. revised its term loan sizes.

In addition, Navex Global disclosed price talk on its credit facility with launch, and Great Wolf Resorts Holdings Inc., Bridon Ltd. and Creganna-Tactx Medical surfaced with new deal plans.

INC Research tops OID

INC Research’s credit facility broke for trading on Thursday with the $425 million seven-year term loan B quoted at 99½ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 375 basis points with a 25 bps step-down after a minimum $75 million initial public offering and leverage of less than 4 times. The debt has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.

Recently, pricing on the B loan firmed at the tight end of the initial Libor plus 375 bps to 400 bps talk.

The company’s $525 million credit facility also includes a $100 million five-year revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, ING Capital Markets, RBC Capital Markets LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

INC Research is a Raleigh, N.C.-based therapeutically focused contract research organization.

Block Communications frees up

Block Communications’ $225 million seven-year covenant-light term loan B (Ba1/BB+) emerged in the secondary market too, with levels seen at 99¾ bid, par 1/8 offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at 3 times total leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99½ and has 101 soft call protection for six months.

The other day, pricing on the term loan B was lowered from Libor plus 375 bps, the step-down was added and the discount was revised from 99.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to fund the acquisitions of MetroCast and Line Systems Inc.

Block Communications is a Toledo, Ohio-based diversified media company.

CRC gains ground

Also in trading, CRC Health’s first- and second-lien term loans were stronger in reaction to the late Wednesday announcement that Acadia Healthcare is buying the company for $1,175,000,000, consisting of up to about 6.3 million shares of Acadia’s common stock and the assumption of CRC’s debt, according to a trader.

The first-lien term loan was quoted at par bid, par ½ offered, up from 99¼ bid, 99¾ offered, and the second-lien term loan was quoted at 102 bid, 103 offered, up from 99¾ bid, par ¾ offered, the trader said.

Closing is expected in the first quarter of 2015, subject to regulatory review and customary closing conditions.

CRC is a Cupertino, Calif.-based operator of addiction recovery centers. Acadia is a Franklin, Tenn.-based provider of inpatient behavioral health care services.

Pabst firms pricing

Over in the primary, Pabst finalized pricing on its $395 million seven-year first-lien term loan (B1/B) at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Also, pricing on the $130 million eight-year second-lien term loan (Caa1/CCC+) firmed at Libor plus 825 bps, the tight end of the Libor plus 825 bps to 850 bps talk, and the 1% Libor floor, discount of 99 and hard call protection of 102 in year one and 101 in year two were unchanged, the source said.

The company’s $600 million credit facility also includes a $75 million revolver (B1/B).

Commitments remained due at 5 p.m. ET on Thursday.

UBS AG, Barclays, BMO Capital Markets and Rabobank are leading the deal that will be used to help fund the acquisition of the company by Oasis Beverages from Evan, Daren and Dean Metropoulos. Also, as part of the transaction, TSG Consumer Partners will acquire a minority stake in Pabst.

Pabst is a brewing company that is currently and will remain based in Los Angeles. Oasis is a Russian beer and soft drinks company.

Citadel Plastics revised

Citadel Plastics lifted its six-year first-lien covenant-light term loan B (B2/BB-) to $320 million from $300 million, set pricing at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, extended the 101 soft call protection to one year from six months and eliminated the 18 month MFN sunset provision, according to a market source.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

As for the seven-year second-lien covenant-light term loan (Caa1/B-), it was downsized to $80 million from $100 million, while pricing remained at Libor plus 800 bps with a 1% Libor floor and an original issue discount of 99, and the hard call protection of 102 in year one and 101 in year two was unchanged.

The company’s $430 million credit facility also includes a $30 million six-year revolver (B2/BB-).

Citadel lead banks

GE Capital Markets and KeyBanc Capital Markets are leading Citadel Plastics’ credit facility that will be used to refinance existing debt and finance an acquisition.

Recommitments are due by 5 p.m. ET on Friday, the source added.

As part of the transaction, the sponsors, HGGC and Charlesbank Capital, will be converting about $26 million of subordinated debt to contributed equity.

Citadel Plastics is a Chicago-based provider of plastic composite compounds.

Norwegian retrenches

Norwegian Cruise Line downsized its seven-year term loan B to $350 million from $500 million and upsized its incremental term loan A to $600 million from $450 million, a market source said.

Price talk on the term loan B is still Libor plus 350 bps to 375 bps with a 0.75% Libor floor and an original issue discount of 99, and the incremental term loan A is priced at Libor plus 225 bps.

J.P. Morgan Securities LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisition of Prestige Cruises International Inc. for $3,025,000,000, including the assumption of debt.

Also for the acquisition, the company has received a commitment for $780 million of senior unsecured bridge loans, plans to issue about 20.3 million equity shares to Prestige shareholders, and will utilize cash on hand.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Norwegian Cruise Line is a Miami-based cruise company. Prestige is the parent company of Oceania Cruises and Regent Seven Seas Cruises.

Navex releases talk

In more primary news, Navex Global held its bank meeting on Thursday morning, and with the event, price talk on its $310 million credit facility was announced, according to a market source.

The $20 million five-year revolver is talked at Libor plus 450 bps to 475 bps with no floor, the $200 million seven-year first-lien covenant-light term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $90 million eight-year second-lien covenant-light term loan is talked at Libor plus 825 bps with a 1% Libor floor, a discount of 98½ and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Nov. 13.

GE Capital Markets and Golub Capital are leading the deal that will be used with equity to fund the buyout of the company by Vista Equity Partners from the Riverside Co.

Navex Global is a Lake Oswego, Ore.-based provider of ethics and compliance software, content and services.

Great Wolf readies deal

Great Wolf Resorts set a bank meeting for 2:30 p.m. ET in New York on Monday to launch $270 million of term loans, a market source said.

The debt consists of a fungible $150 million add-on first-lien covenant-light term loan due Aug. 6, 2020 and a new $120 million seven-year second-lien covenant-light term loan, the source continued.

Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA and Apollo are leading the deal that will be used to refinance existing debt and pay a dividend.

Great Wolf is a Madison, Wis.-based indoor water park resort operator.

Bridon on deck

Bridon scheduled a bank meeting for Wednesday to launch a $443 million credit facility, according to a market source.

The facility consists of a $40 million revolver, a $290 million first-lien term loan and a $113 million second-lien term loan, the source said.

RBC Capital Markets and Nomura are leading the deal that will be used to help fund the buyout of the company by The Ontario Teachers’ Pension Plan from Melrose Industries plc for about £365 million.

Closing is expected by year end, subject to receipt of required regulatory approvals.

Bridon is a Doncaster, U.K.-based manufacture of wire rope.

Creganna-Tactx coming soon

Creganna-Tactx Medical will hold a bank meeting on Nov. 6 to launch a $300 million credit facility, a market source remarked.

The facility consists of a $25 million revolver, a $185 million first-lien term loan and a $90 million second-lien term loan, the source continued.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are leading the deal that will be used to help fund the acquisition of Precision Wire Components LLC from the Riverside Co., and the combined company will be known as Creganna Medical.

First-lien leverage is 3.4 times, total leverage is 5.1 times and equity is more than 40% of the capitalization.

Closing is expected in early December, subject to regulatory approvals and other customary conditions.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing services. Precision Wire is a Tualatin, Ore.-based producer of medical wires.

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