EagleClaw, Unitymedia, Masergy, TKC, Endurance, Grocery Outlet, American Airlines break

By Sara Rosenberg

New York, June 8 – The secondary market on Thursday saw a number of deals free up, including EagleClaw Midstream Ventures LLC, Unitymedia Finance LLC, Masergy Communications Inc. and TKC Holdings Inc.

Also, Endurance International Group (EIG Investors Corp.), Grocery Outlet (GOBP Holdings Inc.) and American Airlines Inc. firmed spreads on their term loans at the low end of guidance, and then these deals broke for trading as well.

In addition, KMG Chemicals Inc. reduced pricing on its term loan B, added a step-down and tightened the original issue discount, and Plasman Group extended the commitment deadline on its term loan.

Furthermore, U.S. Anesthesia Partners, DHX Media Ltd. and Switch Ltd. released price talk with launch, and Idera, Western Dental Services (Premier Dental Services Inc.) and Horseshoe Baltimore (CBAC Gaming LLC) joined the near-term primary calendar.

EagleClaw hits secondary

EagleClaw Midstream Ventures’ credit facilities broke for trading on Thursday, with the $1.25 billion seven-year first-lien term loan (B3/B+/BB) quoted at par bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

On Wednesday, pricing on the term loan was trimmed from Libor plus 475 bps and the call protection was extended from six months.

The company’s $1.35 billion in senior secured credit facilities also include a $100 million super-priority revolver.

Jefferies LLC is leading the deal that will be used to help fund the buyout of the company by Blackstone Energy Partners and Blackstone Capital Partners for about $2 billion.

Closing is expected by the end of July.

EagleClaw is a Midland, Texas-based midstream operator in the Permian’s Delaware Basin in West Texas.

Unitymedia starts trading

Unitymedia’s $855 million covenant-light term loan B due September 2025 freed up for trading, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 225 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

On Wednesday, the term loan was upsized from $620 million and pricing was cut from Libor plus 250 bps.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., ING, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets and The Bank of Nova Scotia are leading the deal. Scotia is the administrative agent.

The term loan will be used to refinance €527 million of 5.5% senior secured notes due 2022, and funds from the recent upsizing will partially refinance secured bonds due 2023.

Closing is expected on or about Sept. 14.

Unitymedia is a Germany-based cable TV and broadband company.

Masergy breaks

Another deal to begin trading was Masergy’s $346 million first-lien term loan, with levels quoted at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

TKC frees up

TKC Holdings’ incremental term loans also emerged in the secondary market, with the $130 million incremental first-lien term loan due February 2023 quoted at par 3/8 bid, par ½ offered and the $80 million incremental second-lien term loan quoted at 99¾ bid, par ¾ offered, according to a trader.

Pricing on the incremental first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The incremental second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

On Wednesday, the first-lien term loan was upsized from $115 million and the spread firmed at the high end of the Libor plus 400 bps to 425 bps talk, and the second-lien term loan was upsized from $55 million and pricing was set at the wide end of the Libor plus 775 bps to 800 bps talk.

TKC lead banks

Jefferies LLC and KK Capital Markets are leading TKC Holdings’ term loans, with Jefferies left lead on the first-lien and KKR left lead on the second-lien.

Proceeds will be used to fund a dividend.

In connection with this transaction, the company’s existing first-and second-lien term loan will be repriced to match the incremental loan levels and the new loans will be fungible.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry and a provider of in-room coffee service to hotels and motels.

Endurance firms, trades

Endurance International Group finalized the spread on its $1,697,000,000 first-lien term loan due February 2023 at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, a market source said.

The term loan has a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

On Tuesday, the issue price on the loan was changed from talk of 99.5 on extended and new money commitments and par on commitments from existing 2023 loan lenders.

With terms firmed up, the loan broke for trading and levels were seen at par bid, par ½ offered, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Jefferies LLC and Societe Generale are leading the deal that will be used to refinance existing first-lien term loans due in 2019 and 2023.

Endurance is a Burlington, Mass.-based provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online.

Grocery Outlet updated, breaks

Grocery Outlet set pricing on its $528,977,159 senior secured covenant-light term loan B due Oct. 21, 2021 at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

The loan then freed up for trading late in the day at par ¼ bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor.

Closing is expected on Wednesday.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

American finalized, tops par

American Airlines set pricing on its $735 million senior secured term loan B due Oct. 10, 2021 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, a market source said.

As before, the term loan has a 0% Libor floor, par issue price and 101 soft call protection for six months.

Late in the day, the loan broke for trading, and levels were seen at par 1/8 bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, ICBC and U.S. Bank are leading the deal that will be used to reprice an existing term loan from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Wednesday.

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

KMG reworked

KMG Chemicals lowered pricing on its $550 million seven-year term loan B to Libor plus 425 bps from Libor plus 475 bps, added a step-down to Libor plus 400 bps based on leverage, and changed the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $600 million of senior secured credit facilities (B2/B+) also include a $50 million five-year revolver.

Recommitments are due on Friday afternoon, the source said.

KeyBanc Capital Markets Inc., HSBC Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund the acquisition of Flowchem from Arsenal Capital Partners for $495 million, including working capital of about $17 million, to refinance existing debt and for general corporate purposes.

Closing is expected on June 15, subject to customary conditions, including regulatory approval.

Pro forma total leverage will be 5.26 times utilizing $104.6 million of pro forma adjusted EBITDA.

KMG is a Fort Worth-based producer and distributor of specialty chemicals. Flowchem is a Waller, Texas-based manufacturer of pipeline performance products.

Plasman moves deadline

Plasman Group extended the commitment deadline on its $325 million senior secured term loan B (Caa1/B) due Dec. 31, 2022 to 5 p.m. ET on Wednesday from 5 p.m. ET on Monday, a market source remarked.

The term loan is talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

Barclays is leading the deal that will be used to repay existing debt and fund a one-time dividend to shareholders.

Plasman is a Windsor, Ont.-based full-service supplier of Class A automotive exterior trim, fascia and precision components and systems to OEMs.

U.S. Anesthesia sets talk

Also in the primary market, U.S. Anesthesia Partners held its lender call on Thursday morning, launching its $950 million seven-year covenant-light first-lien term loan (B1/B) at talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 20, the source said.

The company’s $1.4 billion of credit facilities also include a $150 million five-year revolver (B1/B) and a $300 million pre-placed eight-year second-lien term loan (Caa1/CCC+).

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Antares Capital, BMO Capital Markets and Capital One are leading the deal that will be used to refinance existing debt, to pay related fees and expenses and to pay a one-time shareholder dividend and management bonuses.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

DHX Media guidance

DHX Media came out with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $480 million 6.5-year term loan B that launched with a morning bank meeting, a market source said.

The company’s $510 million of credit facilities (B) also include a $30 million five-year revolver.

Commitments are due on June 22, the source added.

RBC Capital Markets LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the acquisition of the entertainment division of Iconix Brand Group Inc. and to refinance existing debt.

DHX is buying the entertainment division of Iconix, which includes an 80% controlling interest in Peanuts and 100% of Strawberry Shortcake, for $345 million, subject to a customary working capital adjustment. The remaining 20% interest in Peanuts will continue to be held by members of the family of Charles M. Schulz.

Closing is expected on or around June 30, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

DHX is a Halifax, Nova Scotia-based children’s content and brands company.

Switch launches

Switch had its bank meeting in the morning, and launched its $500 million seven-year covenant-light term loan B at talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $950 million of credit facilities (B1/BBB-) also include a $450 million revolver.

Commitments are due on June 20, the source added.

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt, fund an up to $175 million dividend and for general corporate purposes.

Switch is a Las Vegas-based developer and operator of data centers.

Idera coming soon

Idera surfaced with plans to hold a bank meeting on Monday to launch $730 million of credit facilities, according to a market source.

The facilities consist of a $30 million revolver, a $525 million first-lien term loan and a $175 million second-lien term loan, the source said.

Jefferies LLC and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of the company by HGGC LLC. TA Associates, Idera’s current owner, with retain a significant ownership stake in the company.

Idera is a Houston-based provider of software tools for databases.

Western Dental on deck

Western Dental Services set a bank meeting for 2 p.m. ET in New York on Monday to launch $330 million of senior secured credit facilities, according to a market source.

The facilities consist of a $25 million revolver and a $305 million six-year term loan B, the source said.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to refinance existing debt and fund the acquisition of Project Riley.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

Horseshoe readies deal

Horseshoe Baltimore (CBAC) will hold a bank meeting at 10 a.m. ET on Tuesday to launch a $300 million seven-year covenant-light term loan that includes 101 soft call protection for six months, a market source remarked.

Commitments are due on June 27, the source added.

Wells Fargo Securities LLC is the left lead on the deal.

Proceeds will be used to refinance an existing term loan and to fund working capital.

CBAC, a joint venture between Caesars Growth Partners LLC and several other third parties, is the owner and operator of the Horseshoe Baltimore Casino in Baltimore.

Gypsum closes

In other news, Gypsum Management and Supply Inc. (GYP Holdings III Corp.) completed its $578 million covenant-light first-lien term loan due April 1, 2023 priced at Libor plus 300 bps with a 1% Libor floor, according to a news release. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $528 million and pricing firmed at the low end of the Libor plus 300 bps to 325 bps talk.

Credit Suisse Securities led the deal that was used to reprice an existing $478 million term loan from Libor plus 350 bps with a 1% Libor floor and extend the maturity from 2021 and to repay the company’s ABL borrowings.

Gypsum Management is a Tucker, Ga.-based distributor of wallboard, acoustical products and other specialty building materials.

SuperValu wraps

SuperValu Inc. closed on its $840 million seven-year covenant-light senior secured term loan B (Ba3/BB-/BB), split between a $525 million funded tranche and a $315 million delayed-draw tranche, a news release said.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, the discount was changed from 99.5, the MFN sunset was removed and a springing maturity was added to 91 days prior to the maturity date of 2021 and 2022 notes to the extent those notes are not refinanced or repaid.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets and Citigroup Global Markets Inc. led the deal that is being used to refinance an existing $524 million senior secured term loan B due 2019 and to help fund the acquisition of Unified Grocers Inc. for about $114 million in cash, plus the assumption and repayment of Unified Grocers’ net debt of about $261 million at closing.

SuperValu is an Eden Prairie, Minn.-based supermarket operator and wholesale grocery distributor. Unified Grocers is a retailer-owned wholesale grocery cooperative.

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