Lumileds, Foresight, Lightstone, Sterling, Cole-Parmer break; handful of deal updates emerge

By Sara Rosenberg

New York, March 17 – Lumileds (Bright Bidco BV), Foresight Energy LLC, Lightstone Holdco LLC and Sterling Talent Solutions all freed up for trading on Friday, and Cole-Parmer Instrument Co. hit the secondary market after upsizing its first-lien term loan and downsizing its second-lien term loan.

In other news, Capital Automotive LP (CARS) lowered the spread on its first-lien term loan, ON Semiconductor Corp. firmed pricing on its term loan B at the low end of talk, Visteon Corp. modified the issue price on its term loan B, and Highline Aftermarket upsized its term loan, lowered pricing and tightened the new money original issue discount.

Also, AlixPartners LLP, Ultra Resources Inc., Gates Global LLC and Spectrum Brands Inc. released price talk with launch, and CCC Information Services Inc., Chemours Co., Installed Building Products Inc., Unifrax and NPC International Inc. joined the near-term primary calendar.

Lumileds starts trading

Lumileds’ $1.15 billion seven-year covenant-light first-lien term loan (Ba3/B+) emerged in the secondary market on Friday, with levels quoted at par ¾ bid, 101¼ offered, according to a trader.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

On Thursday, pricing on the term loan was reduced from talk of Libor plus 500 bps to 525 bps, the pricing step-downs were removed, the discount was revised from 99, the MFN sunset was eliminated and the asset sale sweep step-downs were removed.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., ING Capital Markets and Rabobank are leading the deal that will help fund the acquisition of an 80.1% interest in the company by Apollo Global Management LLC from Royal Philips, which will retain the remaining 19.9% interest. The transaction values Lumileds at an enterprise value of about $2 billion, including debt and debt-like items.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

Lumileds is a supplier of LED components and automotive lighting.

Foresight frees up

Foresight Energy, a St. Louis-based producer and marketer of thermal coal, saw its $825 million five-year first-lien term loan B begin trading too, with levels quoted at 98½ bid, 99½ offered, a market source said.

Pricing on the loan is Libor plus 575 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, the term loan was upsized from $750 million as the company’s bond offering was downsized to $425 million from $500 million, the spread firmed at the high end of the Libor plus 550 bps to 575 bps talk and the discount widened from 99. Also, some covenant changes were made, including revising the secured leverage ratio test for additional parity lien debt in the permitted lien clause to 3.75 times from 4.25 times.

The company’s $995 million senior secured credit facility includes a $170 million revolver.

Goldman Sachs Bank USA, Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used with the bonds and about $78 million of cash on hand to refinance around $349 million in second-lien senior secured PIK notes due 2021, about $300 million in second-lien senior secured exchangeable PIK notes due 2017 and existing credit facilities.

Lightstone tops par

Lightstone’s $1,625,000,000 covenant-light term loan B due January 2024 and $100 million term loan C (funded letter-of-credit facility) due January 2024 freed to trade in the afternoon, with levels quoted at 101 bid, 101½ offered, according to a market source.

Pricing on the loans is Libor plus 450 bps with a 1% Libor floor, and they were issued at par. The debt has 101 soft call protection for six months.

Initially, the term loan B was expected to be sized at $1,575,000,000 and the term loan C was expected at $150 million, but the sizes were changed shortly after the deal was announced and the adjusted sizes were outlined on the company’s lender call. Also, on Thursday, pricing on the loans finalized at the low end of the Libor plus 450 bps to 475 bps talk.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the $1,725,000,000 in term loans that will be used to reprice an existing term loan B and term loan C from Libor plus 550 bps with a 1% Libor floor.

Lightstone is a portfolio of four power generation facilities.

Sterling hits secondary

Sterling Talent Solutions’ $493.6 million term loan B due June 19, 2022 also broke, with levels seen at par bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 475 bps with a 1% Libor floor.

Closing is expected during the week of March 20.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

Cole-Parmer retranches, breaks

Cole-Parmer Instrument lifted its covenant-light first-lien term loan to $435 million from $410 million and trimmed its pre-placed second-lien term loan to $155 million from $180 million, according to a market source.

The first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5, and includes 101 soft call protection for six months.

Earlier in syndication, the discount on the first-lien term loan was revised from 99.

The company’s $630 million credit facility also includes a $40 million revolver.

With terms finalized, the first-lien term loan freed up for trading and levels were quoted at par bid, 101 offered, a trader added.

Jefferies Finance LLC, Antares Capital, Golub and Angel Island are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from GTCR, which is expected to close this quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Capital Automotive cuts spread

In more happenings, Capital Automotive trimmed pricing on its $1,115,000,000 seven-year first-lien term loan (B1/B) to Libor plus 300 bps from Libor plus 350 bps, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, according to a market source.

The company’s $2,005,000,000 senior secured credit facility also includes a $200 million five-year revolver (B1/B) and a $690 million eight-year second-lien term loan (B3/CCC+).

As before, the second-lien term loan is priced at Libor plus 600 bps with a 1% Libor floor and a discount of 99, and has call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Friday, the source said.

Barclays is the left bookrunner on the deal that will be used to refinance existing bank debt, to fund a cash dividend to Brookfield Asset Management and its institutional partners and to pay related fees and expenses.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

ON Semiconductor updated

ON Semiconductor finalized pricing on its $2.38 billion covenant-light term loan B due March 2023 at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and kept the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Allocations are expected on Monday, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC, SMBC and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B from Libor plus 325 bps with a 0% Libor floor.

Closing is expected on March 31.

ON Semiconductor is a Phoenix-based semiconductor company.

Visteon tweaks loan

Visteon tightened the issue price on its $350 million seven-year senior secured covenant-light term loan B (BB+) to par from talk in the range of 99.5 to 99.75, and left pricing at Libor plus 225 bps with a 0% Libor floor, a market source remarked.

The term loan B still has 101 soft call protection for six months.

Recommitments and new money commitments were due at 5 p.m. ET on Friday, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, UBS Investment Bank, SMBC and US Bank are leading the deal that will be used to amend and extend an existing term loan B due 2021.

In addition, the company is looking to extend its revolver maturity to 2022 from 2019 and increase its size to $300 million from $200 million.

Closing is expected during the week of March 20.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

Highline Aftermarket reworked

Highline Aftermarket raised its seven-year term loan to $257 million from $252 million, cut pricing to Libor plus 425 bps from talk of Libor plus 475 bps to 500 bps and changed the original issue discount on new money to 99.5 from 99, according to a market source.

As before, the discount for old money discount is 99.5, and the loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $297 million credit facility also includes a $40 million five-year revolver.

Recommitments were due by the end of the day on Friday, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used with $65 million of mezzanine debt, downsized from $70 million with the term loan upsizing, to fund the acquisition of Service Champ and refinance existing debt.

Highline Aftermarket, a Sterling Group portfolio company, is a manufacturer and distributor of packaged automotive chemicals, lubricants and parts.

AlixPartners launches

AlixPartners held a lender call on Friday, launching its $1.37 billion seven-year covenant-light term loan B (B2/B+) at talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on March 29, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal that will be used to refinance an existing term loan and fund a distribution to shareholders.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Ultra Resources sets talk

Ultra Resources held its bank meeting, launching a $600 million seven-year first-lien RBL term loan (Ba2/BB/BB+) at talk of Libor plus 300 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 are due at noon ET on March 30, the source said.

Barclays, Goldman Sachs Bank USA and BMO Capital Markets are leading the deal that will be used for general corporate purposes and to fund the repayment of certain claims under an approved reorganization plan.

Based on an 8-K filed with the Securities and Exchange Commission, other exit financing is expected to come from an up to $400 million revolver, $1.4 billion in unsecured senior notes and $580 million in proceeds from a rights offering.

Ultra Resources is a Houston-based explorer, producer and distributor of oil and natural gas.

Gates reveals guidance

Gates Global came out with talk on its lender call of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.875 on the extension by two years and eight months of its $1,949,000,000 term loan B to March 2024, a market source said.

The spread and floor on the extended U.S. term loan are unchanged from current pricing.

Additionally, the company launched its $300 million-equivalent euro add-on first-lien term loan B due March 2024 and extension by two years and eight months of its €193 million term loan B to March 2024 at talk of Euribor plus 350 bps with a 0% floor and an original issue discount of 99.875 to par, the source continued.

Current pricing on the existing euro term loan is Euribor plus 325 bps with a 1% floor.

All of the term loans are getting 101 soft call protection for six months.

Credit Suisse, Citigroup, Macquarie and Morgan Stanley are leading the deal (B2/B+).

Proceeds from the add-on loan and a $150 million add-on 6% senior unsecured notes offering will be used to partially repay the existing $2,398,700,000 U.S. first-lien term loan.

Gates, a Denver-based aftermarket-focused manufacturer of power transmission belts and fluid power products, is asking for term loan commitments by noon ET on March 29.

Spectrum holds call

Spectrum Brands had its lender call in the afternoon, launching its $1,003,000,000 term loan B due June 23, 2022 at talk of Libor plus 200 bps to 225 bps with no floor and 101 soft call protection for six months, according to a market source.

Signatures are due at 5 p.m. ET on March 24 with allocations targeted for March 27.

RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing U.S. term loan B from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected in April.

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

CCC readies deal

Also on the new deal front, CCC Information Services scheduled a bank meeting for 10:30 a.m. ET on Wednesday to launch a $1.4 billion senior secured credit facility, according to market sources.

The facility consists of a $100 million five-year revolver, a $925 million seven-year first-lien term loan that has 101 soft call protection for six months, and a $375 million eight-year second-lien term loan that includes hard call protection of 102 in year one and 101 in year two, sources said.

Jefferies Finance LLC and Nomura are leading the deal, with Jefferies left on the first-lien and Nomura left on the second-lien.

The credit facility will be used to help fund the buyout of the company by Advent International from Leonard Green Partners and Texas Pacific Group and to refinance existing debt.

Closing is expected early in the second quarter.

CCC Information is a Chicago-based provider of mission-critical infrastructure to the automotive insurance and claim industry through its integrated software, data, analytics, and workflow management systems.

Chemours joins calendar

Chemours will hold a lender call at 10 a.m. ET on Monday to launch a $1,022,000,000 term loan B due May 12, 2022 and a new $350 million-equivalent euro term loan B due May 12, 2022, a market source remarked.

Commitments are due at noon ET on March 28, the source added.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice/refinance an existing term loan B due 2022 and to pay related fees and expenses.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

Installed Building on deck

Installed Building Products emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $400 million senior secured credit facility, according to sources.

The facility consists of a $100 million five-year ABL revolver and a $300 million seven-year covenant-light term loan B, sources said.

Revolver pricing is expected to range from Libor plus 125 bps to 175 bps based on excess availability and the unused fee is expected to range from 25 bps to 37.5 bps based on utilization.

The term loan B is talked with a 1% Libor floor and 101 soft call protection for six months. Spread and original issue discount talk are not yet available.

RBC Capital Markets, UBS Investment Bank and Jefferies Finance LLC are leading the deal that will be used to refinance existing bank debt and add cash to the balance sheet.

Commitments are due on March 31 and closing is targeted for the week of April 3.

Net leverage is 2.1 times.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

Unifrax plans call

Unifrax scheduled a lender call for 11 a.m. ET on Tuesday to launch a $460 million U.S. senior secured term loan B and a $200 million-equivalent euro senior secured term loan B, according to a market source.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance existing debt.

Unifrax is a Tonawanda, N.Y.-based specialty materials platform focused on providing innovative thermal management, filtration, and energy solutions for variety of end markets and applications.

NPC coming soon

NPC International set a bank meeting for 1 p.m. ET on Monday to launch $740 million in new term loans, according to an 8-K filed with the Securities and Exchange Commission.

The debt consists of a $580 million first-lien term loan B and a $160 million second-lien term loan.

KKR Capital Markets and Antares Capital are leading the deal that will be used to refinance existing bank debt and 10.5% senior notes due 2020, and to fund acquisitions.

NPC is an Overland Park, Kan.-based consolidator and developer of restaurant brands.

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