Kloeckner Pentaplast, Element Materials break; Staples, Trinseo, Aspen, Nellson update deals

By Sara Rosenberg

New York, April 22 – Kloeckner Pentaplast’s credit facility freed up for trading on Wednesday, with the U.S. term loan seen above its original issue discount, and Element Materials Technology surfaced in the secondary as well.

Switching to the primary market, Staples Inc. firmed pricing on its term loan B at the low end of revised guidance, and Trinseo Materials Operating SCA upsized its term loan B while tightening the spread and original issue discount.

In addition, Aspen Dental Management Inc. lifted its term loan size, trimmed pricing, changed the original issue discount and extended the call protection, and Nellson Nutraceutical LLC increased the size of its add-on term loan and modified the offer price.

Also, Chemours Co., MJ Acquisition Corp., eResearchTechnology Inc. and J. Jill disclosed talk with launch, McGraw-Hill Global Education Holdings LLC brought a repricing to market, and RadNet Inc. surfaced with new loan plans.

Kloeckner starts trading

Kloeckner Pentaplast’s credit facility hit the secondary market on Wednesday, with the €668 million U.S. equivalent five-year first-lien covenant-light term loan quoted at 100½ bid, 101 offered, according to a trader.

Pricing on the U.S. term loan and on a €213 million five-year first-lien covenant-light term loan is Libor/Euribor plus 400 basis points with a 1% floor, and the debt was sold at an original issue discount of 99¾. The loans have 101 soft call protection for six months.

During syndication, the U.S. equivalent term loan was upsized from €631 million, the euro term loan was upsized from €200 million, pricing was cut from talk of Libor/Euribor plus 450 bps to 475 bps, and the discount was tightened from 99.

The company’s €981 million credit facility also includes a €100 million 4¾-year revolver.

Credit Suisse Securities, Barclays, Deutsche Bank Securities and Jefferies are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Kloeckner is a Montabaur, Germany-based provider of rigid plastic film.

Element Materials frees up

Element Materials Technology’s fungible $70 million add-on term loan B due Aug. 8, 2021 and repriced roughly $283.6 million term loan B due Aug. 8, 2021 broke too, with levels seen at 100¼ bid, 100¾ offered, a trader remarked.

Pricing on the add-on term loan and repriced term loan is Libor plus 400 bps with a 1% Libor floor, and all of the debt was issued at par. There is 101 soft call protection for six months.

Recently, pricing on the add-on term loan was lowered from Libor plus 425 bps, the offer price on the add-on firmed at the tight end of the revised talk of 99¾ to par and tight of initial talk of 99½, the repricing proposal was introduced, and the call protection was added to the debt.

Proceeds from the add-on will be used to fund an acquisition.

RBC Capital Markets is leading the deal for Element, a network of laboratories with experts specializing in materials testing, product qualification testing and failure analysis.

Staples sets pricing

Meanwhile, in the primary market, Staples finalized pricing on its $2.75 billion six-year senior secured covenant-light term loan B (Baa2/BBB) at Libor plus 275 bps, the tight end of revised talk of Libor plus 275 bps to 300 bps and down from original talk of Libor plus 350 bps, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99½, 101 soft call protection for six months and a ticking fee of half the margin starting May 1 and the full margin plus the floor starting June 1.

The discount on the loan was revised from 99 when the revised spread talk was announced early this week.

The company’s $5.75 billion credit facility also includes a $3 billion five-year asset-based revolver.

Barclays, Bank of America Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are leading the deal.

Staples buying Office Depot

Proceeds from Staples’ credit facility, $2.1 billion of stock, $500 million of cash on Staples’ balance sheet and $500 million of Office Depot Inc. debt and capital leases that will be rolled over will be used to fund the acquisition of Office Depot and to refinance some of the debt of both companies.

Under the agreement, Office Depot shareholders will receive per share $7.25 in cash and 0.2188 of a share in Staples stock at closing. The transaction values Office Depot at $6.3 billion.

Closing is expected by year-end, subject to customary conditions, including antitrust regulatory approval and Office Depot shareholder approval.

Excluding synergy, secured leverage is 2.1 times and total leverage is 2.6 times, and including synergy secured leverage is 1.4 times and total leverage is 1.8 times.

Staples is a Framingham, Mass.-based retailer of office supplies. Office Depot is a Boca Raton, Fla.-based provider of products, services and solutions for the workplace.

Trinseo reworks deal

Trinseo Materials lifted its 6½-year covenant-light term loan B to $500 million from $450 million, trimmed pricing to Libor plus 325 bps from Libor plus 375 bps and moved the original issue discount to 99¾ from talk of 99 to 99½, while leaving the 1% Libor floor and 101 soft call protection for six months intact, a market source said.

The company’s now $825 million senior secured credit facility (Ba3/BB-) also includes a $325 million five-year revolver.

Commitments continue to be due at noon ET on Thursday.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA, HSBC Securities, Mizuho, SMBC and Scotiabank are leading the deal that that will be used with $700 million-equivalent of senior notes, downsized from $750 million with the term loan upsizing, to refinance 8¾% senior secured notes.

Closing is expected during the week of May 4.

Trinseo is a Berwyn, Pa.-based materials company and manufacturer of plastics, latex and rubber.

Aspen Dental revised

Aspen Dental Management increased its covenant-light term loan to $400 million from $380 million, lowered pricing to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps, changed the original issue discount to 99½ from 99, extended the 101 soft call protection to one year from six months and removed the MFN sunset, a source remarked.

The term loan still has a 1% Libor floor.

The company’s now $435 million credit facility also includes a $35 million revolver.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, BMO Capital Markets, Deutsche Bank Securities Inc. and GE Capital Markets are leading the deal that will be used with privately placed unsecured debt to fund the recapitalization of the company by American Securities LLC, in partnership with current owners, Ares Management LP and Leonard Green & Partners LP, and management.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

Nellson tweaks add-on

Nellson Nutraceutical raised its add-on term loan to $60 million from $50 million and changed the offer price to par from talk of 99, according to a market source.

Pricing on the add-on term loan is Libor plus 500 bps with a 1% Libor floor, which matches existing term loan pricing.

GE Capital Markets is leading the deal that will be used to help fund the acquisition of certain production assets from NBTY Inc.

Nellson Nutraceutical, a Kohlberg & Co. LLC portfolio company, is an Irwindale, Calif.-based nutritional diet protein energy diabetic medical bar and powder manufacturer.

Chemours launches

Also in the primary, Chemours held its bank meeting on Wednesday, launching its $1.5 billion seven-year covenant-light term loan B with talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $2.5 billion senior secured credit facility also includes a $1 billion revolver.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the company’s spinoff from EI DuPont de Nemours & Co.

Chemours businesses include titanium technologies based around the white pigment titanium dioxide, fluoroproducts, and chemical solutions aimed at the gold production, oil refining, agriculture, industrial polymers and other industries.

MJ Acquisition reveals talk

MJ Acquisition came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $450 million seven-year term loan B (Ba3) that launched with a bank meeting during the session, a source said.

The company’s $700 million credit facility also includes a $50 million five-year revolver (Ba3) and a pre-placed $200 million second-lien term loan (Caa1).

J.P. Morgan Securities LLC is leading the deal that that will be used with equity to fund the acquisition of Concentra Inc. by MJ Acquisition, a joint venture between Select Medical Holdings Corp. and Welsh, Carson, Anderson & Stowe, from Humana Inc. for about $1,055,000,000 in cash, subject to customary adjustments.

Closing is expected this quarter, subject to Hart Scott Rodino regulatory clearance and customary conditions.

Concentra is a health care company that delivers a wide range of medical services to employers and patients.

eResearch holds meeting

eResearchTechnology had its bank meeting, and in connection with the event talk on its $465 million term loan B surfaced 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, according to a market source.

The company’s $510 million credit facility (B2/B) also includes a $45 million revolver.

Commitments are due on May 1, the source said.

Jefferies Finance LLC and Citizens Capital Markets are leading the deal that will be used to fund the acquisition of PHT Corp.

eResearchTechnology, a Genstar Capital portfolio company, is a Philadelphia-based provider of patient-centric endpoint data collection solutions for use in clinical drug development. PHT is a Boston-based collector and reporter of secure real-time patient data from mobile apps.

J. Jill guidance emerges

J. Jill held its bank meeting in the morning, launching its $250 million seven-year term loan B (B2/B) with talk of Libor plus 500 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company’s $290 million credit facility also includes a $40 million asset-based revolver.

Commitments are due on May 6, the source said.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with about $169 million in equity to fund the buyout of the company by TowerBrook Capital Partners LP from Arcapita and Golden Gate Capital.

Closing is expected this quarter.

J. Jill is a Quincy, Mass.-based multi-channel fashion retailer of women’s apparel, accessories and footwear.

McGraw-Hill launches

McGraw-Hill Global Education emerged in the morning with plans to hold a call at 3 p.m. ET to launch a $679 million first-lien covenant-light term loan due March 22, 2019 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice an existing term loan from Libor plus 475 bps with a 1% Libor floor.

Credit Suisse Securities (USA) LLC is leading the deal.

Commitments are due on Tuesday, the source added.

McGraw-Hill Education is a New York-based provider of education materials.

RadNet readies call

RadNet set a lender call for Thursday to launch a $75 million incremental first-lien term loan due Oct. 10, 2018 that will be used to repay revolver borrowings and for general corporate purposes, according to a market source.

Barclays is leading the deal.

Pricing on the existing first-lien term loan is Libor plus 325 bps with a 1% Libor floor.

RadNet is a Los Angeles-based owner and operator of fixed-site diagnostic imaging centers.

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