Navios, Hyland, Royal Adhesives, Ascend Learning break; Spectrum Brands, Mauser update deals

By Sara Rosenberg

New York, June 12 – Navios Maritime Midstream Partners LP firmed pricing on its term loan B at the wide end of talk, added a covenant and then freed up for trading on Friday, and Hyland Software Inc., Royal Adhesives & Sealants LLC and Ascend Learning broke as well.

In more happenings, Spectrum Brands Inc. finalized spreads on its term loans and tightened the original issue discounts on the U.S. and euro debt, and Mauser Group set the original issue discount on its add-on term loan at the tight end of guidance.

Also, ION Trading Technologies Sarl released talk on its add-on term loan, Minerals Technologies Inc. launched a refinancing/repricing transaction, and Tribune Media Co. and Daseke Inc. joined the near-term primary calendar.

Navios updated, trades

Navios Maritime set pricing on its $205 million five-year senior secured first-lien term loan B (B2/BB-) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and added an interest coverage covenant of 3.75 times, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99, 101 soft call protection for one year and an 85% Charter Free LTV covenant.

Commitments were due at noon ET on Friday, and by late afternoon the loan had made its way into the secondary market, with levels quoted at 99¼ bid, par offered, a trader remarked.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to finance the proposed acquisition of up to two vessels from Navios Maritime Acquisition Corp. and to refinance existing term debt.

Navios Maritime is a Monaco-based publicly traded master limited partnership that owns and operates crude oil tankers under long-term employment contracts.

Hyland tops OIDs

Hyland Software’s credit facility hit the secondary market too, with the $625 million seven-year first-lien covenant-light term loan (B2/B) seen at par ¼ bid, par ¾ offered and the $155 million eight-year second-lien covenant-light term loan (Caa2/CCC+) seen at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 375 bps with a 25 bps step-down tied to a net first-lien leverage test and a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and it was issued at 99.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $600 million, and the step-down was added, and, prior to the late-May bank meeting for the deal, the issue price talk was changed from early guidance of 99.75. Also, the second-lien loan was reduced from $180 million, the spread was lowered from Libor plus 750 bps, and the discount was modified from 99.

Hyland getting revolver

In addition to the first- and second-lien term loans, Hyland’s $820 million credit facility includes a $40 million revolver (B2/B).

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used to fund the acquisition and recapitalization of the company by Thoma Bravo Equity Fund XI. Thoma Bravo, the current owner of Hyland, is basically selling the company from one fund to another.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

Royal Adhesives frees up

Royal Adhesives’ credit facility also broke for trading, with the $560 million seven-year first-lien covenant-light term loan quoted at par bid, par ½ offered, and the $145 million eight-year second-lien covenant-light term loan quoted at par bid, 101 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at 99.25. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $535 million, and pricing was cut from Libor plus 375 bps, and the second-lien term loan was downsized from $170 million, the spread was reduced from talk of Libor plus 775 bps to 800 bps, and the discount was changed from 99.

The company’s $755 million credit facility also includes a $50 million revolver.

Royal Adhesives being acquired

Proceeds from Royal Adhesives’ credit facility will be used to help fund its buyout by American Securities LLC from Arsenal Capital Partners.

Credit Suisse Securities, Morgan Stanley Senior Funding, Jefferies Finance LLC and KeyBanc Capital Markets are the leads on the financing.

Closing on the buyout is expected this month, subject to customary conditions and regulatory approvals.

Royal Adhesives is a South Bend, Ind.-based producer of specialty adhesives and sealants.

Ascend Learning breaks

Ascend Learning’s repriced $482.5 million first-lien term loan due 2019 freed up as well, with levels quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 450 bps, after flexing up during syndication from Libor plus 425 bps. The loan has a 1% Libor floor, 101 soft call protection for six months and a 100 bps step-up if corporate ratings are lower than B3/B-, and was issued at par.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal.

The repricing is taking pricing on the term loan down from Libor plus 500 bps with a 1% Libor floor.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health-care and other vocational fields.

Spectrum finalizes terms

Back in the primary, Spectrum Brands set pricing on its $1.45 billion seven-year covenant-light term loan at Libor plus 300 bps, the wide end of the Libor plus 275 bps to 300 bps talk, added a 25 bps step-down at 2 times net first-lien leverage and modified the original issue discount to 99.75 from 99.5, according to a market source.

Additionally, the spread on the company’s €300 million seven-year covenant-light term loan firmed at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps, and the discount was tightened to 99.75 from 99.5, the source said.

Furthermore, pricing on the C$75 million seven-year covenant-light term loan finalized at BA plus 350 bps, the low end of the BA plus 350 bps to 375 bps talk, while the issue price remained at 99.

All of the term loans still have a 0.75% floor and 101 soft call protection for six months.

Spectrum refinancing

Proceeds from Spectrum Brands’ new credit facility (BB/BB+), which also includes a $500 million revolver, will be used to refinance an existing $400 million ABL revolver, about $1.58 billion in term loans and $300 million of 6.75% notes due 2020.

Deutsche Bank Securities and Credit Suisse Securities are leading the deal.

Recommitments were due at 1 p.m. ET on Friday, the source added.

Spectrum Brands is a Middleton, Wis.-based diversified consumer products company.

Mauser firms discount

Mauser Group finalized the original issue discount on its €89 million U.S. dollar-equivalent add-on first-lien covenant-light term loan (B2) due 2021 at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

As before, pricing on the add-on term loan is Libor plus 350 bps with a 1% Libor floor, in line with current first-lien term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for one year.

Credit Suisse Securities and Nomura are leading the deal that will fund a shareholder dividend.

Allocations are expected on Monday, the source added.

With the add-on, the company is amending its existing credit facility to allow for the dividend and to increase pricing on an existing covenant-light second-lien term loan due 2022 to Libor plus 775 bps with a 1% Libor floor from Libor plus 725 bps with a 1% Libor floor. The second-lien term loan will have call protection of 102 in year one and 101 in year two, with a 101 initial public offering carve-out.

First-lien lenders are offered a 15 bps amendment fee, and second-lien lenders are offered a 75 bps fee.

Mauser is a Bruehl, Germany-based industrial packaging company.

ION discloses guidance

ION Trading held its call on Friday, launching its $250 million add-on first-lien term loan due 2021 with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments and consents are due on June 19, the source added.

The spread and the floor on the add-on term loan match pricing on the company’s existing $150 million first-lien term loan.

UBS AG is leading the deal that will be used to refinance second-lien term loan borrowings.

ION Trading is a software provider of trading, treasury and workflow solutions.

Minerals Technologies launches

Minerals Technologies held a call on Friday to launch a $1,028,000,000 term loan B due May 2021 talked at Libor plus 300 bps with a step-down to Libor plus 275 bps if net leverage is below 2.25 times starting in the second quarter after closing, a 0.75% Libor floor, an issue price of 99.75 to par and 101 soft call protection for six months, a source said.

The company also launched a $350 million fixed-rate term loan talked at 4.5% to 4.75% that is non-callable for one year, then at 102 in year two and 101 in year three, the source continued.

J.PMorgan is leading the deal.

Proceeds will be used to refinance/reprice an existing term loan B that is priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at 2.5 times net total leverage and a 0.75% Libor floor.

Minerals Technologies is a New York-based developer, producer and marketer of specialty mineral, mineral-based and synthetic mineral products and related systems and services.

Tribune on deck

Also in the primary, Tribune Media set a lender call for Monday to launch a repricing of its term loan B that is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

The repricing would take the term loan down from Libor plus 300 bps with a 1% Libor floor.

The term loan B will be sized at about $2.47 billion after a pay down from a proposed $1 billion senior unsecured notes offering that was announced on Friday.

In addition, the company said in a news release that it plans to amend certain covenants in the term loan, as applicable, to be consistent with the terms of the notes.

JPMorgan is leading the deal for the Chicago-based owner of television and digital properties.

Daseke coming soon

Daseke scheduled a bank meeting for Tuesday to launch a $250 million term loan that is talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

JPMorgan is leading the deal.

Proceeds will be used to refinance existing debt, to help fund an acquisition and for general corporate purposes.

Daseke is an Addison, Texas-based open-deck/specialty transportation company.

Sivantos wraps at talk

In other news, Sivantos Group (formerly known as Siemens Audiology Solutions) finalized terms on the repricing of its $600 million and €305 million covenant-light term loans due January 2022 in line with talk of Libor/Euribor plus 325 bps with a 1% floor, a par issue price and 101 soft call protection for six months, according to a market source.

However, with the repricing, the company is removing completely the 25 bps step-down in the term loans, instead of revising the condition for the step-down to 4.5 times total net leverage from 5 times total net leverage as originally planned, the source said.

The company is still amending its existing credit agreement to align the general dividend basket to the bond indenture, which would add an additional €40 million, or 11%, of net total adjusted assets dividend basket to the existing documentation.

Sivantos lead banks

Goldman Sachs Bank USA and Deutsche Bank Securities are the global coordinators on Sivantos’ deal, with Goldman the left lead on the U.S. loan and Deutsche the left lead on the euro loan. UBS AG is a joint bookrunner.

When the term loans syndicated late last year, pricing was set at Libor/Euribor plus 450 bps with a 1% floor.

Closing on the repricing/amendment is targeted for July 16, the source added.

The repriced term loans have 50bps MFN.

Sivantos is a Singapore-based manufacturer and wholesaler of hearing aid devices.

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